How to Record Donated Publicly Traded Securities at Fair Market Value on Gift Date
Recording shares donated by a supporter at their closing market price on the date of transfer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investments (Donated Securities) | Asset (+) | 15,000.00 | - |
| Contributions Revenue (Unrestricted) | Revenue (+) | - | 15,000.00 |
💡 Accountant's Note
Donated securities are recorded at their fair market value on the date of the gift (the closing price of the stock). The donor's original cost basis is irrelevant.
Practitioner & Systems Framework
💻 ERP Architecture
The FMV of publicly traded securities is the average of the high and low trading prices on the date of transfer (for GAAP purposes). Record at this FMV immediately upon receipt of the stock transfer. Most NGOs convert donated securities to cash within 3–5 business days per their investment policy — see npo-stock-donated-subsequently-sold.
⚠️ Audit Flags
Auditors verify the FMV using the Bloomberg or stock exchange closing price on the gift date. The gift date is the date the stock is transferred to the NGO's brokerage account — not the donor's letter date. Using the wrong date shifts FMV and can over- or under-state revenue.
📄 Required Documentation
Brokerage transfer confirmation showing date and quantity of shares received, stock price on the transfer date, donor acknowledgment letter, investment register entry, and subsequent sale record.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.