Q&A: Substantiating Stock Donations

Do I need to provide the donor or the government with anything to substantiate a stock donation?

Elaine Sommerville
I have a question regarding stock donations. Our church received a donation of stock from one of our attendees. JP Morgan valued the 86 shares of stock at $5,004.99. JP Morgan has provided the donor a letter of valuation and stated that it may be tax deductible. Is there anything else that I need to provide to the donor or to another government agency? In the transfer of other property (i.e. a boat), I needed to provide Form 1098. Will this be necessary for the stock donation?
There are no special reporting forms that the church must file to report a stock donation as there are with the transportation property. The church can record the value of the investment as of the date it is received by the church. The church should send a letter to the donor thanking them for the donation. The letter is required to contain the statement regarding “no goods or services” that is required to be on charitable contribution statements. The letter should not contain any valuation of the stock. This determination is the responsibility of the donor.

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