The choice to keep or sell stock is the institutions.  The IRS reconizes
the gift of stock to a non profit at the mean value on the date of the
gift.  If the institution chooses to keep the stock any gain or loss is
theirs.  If the instiution chooses to sell, any gain or loss or cost of
sale is theirs.

The decision to keep stock should be made in a board approved
policy/procedure.  We have a policy to keep only that stock designated for
endowment, and then the "Fund Manager" can decide if he wishes to keep it
or sell.  Other stock gifts by policy are sold as soon as received.  The
gift is acknowledged and posted as a contribution  at the mean value on the
date the stock hits our account.  The difference, cost of sale and gain or
loss, are posted to an expense account.

We have an Investment Committee that among its responsibilities makes such
policy and oversees the Fund Manager.

Ann Rybon

----------
> From: Alex Avdichuk <[log in to unmask]>
> To: [log in to unmask]
> Subject: Re: Gifts of Stock - Policy?
> Date: Wednesday, December 09, 1998 3:02 PM
>
> There was an article in the newspaper some time ago about the Toronto
> Symphony Orchestra being given shares of Bre-X stock as a donation.  They
> were fortunate that they cashed in the stock certificates right before
they
> became worthless, becoming one of the few 'investors' who actually made
> money from Bre-X.
>
> I believe that their policy was not to hold any stocks, which is why they
> cashed them in almost immediately.  I would imagine the rationale would
be
> that a tax receipt would be issued for the value of the stock, and unless
> the certificates are cashed in, they're not really worth anything.
>
> Alex Avdichuk
> City of Toronto
> Arts, Culture and Heritage Services
> [log in to unmask]
>
>
>
>
> We were recently given a restricted endowment in the form of a solid
> utility stock.  I'd like to keep it as stock.  Finance Committee wants it
> converted.  Can anyone give me a case for keeping the stock and/or a
> finance policy that includes stock as one form of asset?
> Ann Kiewel
> Holland Museum