How do you record the charity deduction upon the transfer of a stock to your donor advised fund?

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Andrew Levine
Andrew Levine Member ✭✭
in Investing (Windows)
How do you record the charity deduction upon the transfer of a stock to your donor advised fund?

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  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
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    Here's one way of handling this situation:
    A "workaround" of some sort is needed here because Quicken is a classical double entry conventional accounting system and the disposal of a stock, (assumed to be worth more than what you paid for), creates a capital gain.  But if you want Quicken to present information that's in line with the "statutory" accounting allowed by the IRS - no capital gain recognized but a charitable deduction claimed - you have to resort to some trickery.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
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    The stock donation method I use is documented here:
    https://community.quicken.com/discussion/7114305/categorize-donations-from-brokerage-account

    In my perspective, the fact that it is to a donor advised fund is immaterial.  At the time of the gift, the assets are out of your net worth; you have directly acquired the tax deduction.  The deal is done.  

    That the DAF may allow you to direct the investment strategy and specific grants to charities is a separate consideration.  You are not -- at that time and in that manner -- managing your assets.  Some users have wanted to include that DAF account within their personal Quicken file, but I would (do) not choose to do that myself.
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