Other Financial Reports
The Other Financial Reports is a section on the Financial Report Directory that contains reports designed for distributed users that are independent of the other financial dashboards.
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| Gift Securities Net Investment Income Excise Tax | Detail of the 1.4% excise tax levied on the capital gains of stock donations derived from Stanford’s GRASP (Gift Record and Security Proceeds) system recorded in the TCJA (Tax Cuts & Jobs Act) system. |
Gift Securities Net Investment Income Excise Tax
The Gift Securities Net Investment Income (NII) Excise Tax report helps school and unit budget officers and financial analysts track the 1.4% excise tax on capital gains from stock donations received by university funds. This report extracts data from GRASP (Gift Record and Security Proceeds), Stanford's system for recording and tracking gift security donations and their proceeds. For additional context, refer to Topic Overview: Donor Gifts.
Sample Business Questions
- Which securities were donated and sold which resulted in revenue to my fund(s)?
- What is the excise tax amount for stock donations or dividend income charged to my fund?
- When was the security originally transferred to the University and what is the gift security ID number?
Selection Criteria
To retrieve results, follow the Selection Criteria instructions near the top of the screen. Refer to Using Selection Criteria for OBI Reports for more guidance.
- Refer to Understanding the Data below for clarification on excise tax period posting during the processing of securities.
Data is not available prior to FY22.
Report Views
- Gift Securities Revenue and Excise Tax Timing: Gift securities revenue and excise tax postings may occur in different GL periods due to processing timelines and stock valuation changes.
- Excise Tax Period: The Excise Tax Period shows the GL period when the excise tax posts to the fund. This period generally matches when the gift posts as revenue but may occur one to two months later in some circumstances.
- Excise Tax Amount: Stock price fluctuations between receiving and selling the stock can create positive or negative Excise Tax Amounts. An increase in stock value generates a negative excise tax posting amount.
- FY24 Policy Change: Effective FY24, monthly net investment income excise tax charges follow these guidelines:
- Gifts under $500,000: Charges post to a central office general fund
- Gifts of $500,000 or greater: Charges continue posting to the award allocation.
For more information, refer to Topic Overview: Donor Gifts - Managing Donor Gifts.
Understanding the Data
Fund Statement display of excise tax transactions
The Fund Statement displays excise tax transactions differently than revenue transactions, using aggregated amounts and specific object codes to track university investment expenses.
Excise Tax Display
The Fund Statement shows excise tax as a single aggregated amount for each GL period per award. However, the Excise Tax report lists gifts separately with distinct Gift Security IDs.
Revenue Display
Revenue appears on the Fund Statement with one line for each Gift Security ID number. The Journal Line Descriptive Text begins with the Gift Security ID number followed by the donor name, not the Gift Security Name.
Excise tax transaction postings
Excise tax appears on the Fund Statement under object code:
- 47415-INVEST EXCISE TAX-REALZD GAINS
Two additional offsetting transactions (one negative and one positive) appear on the Fund Statement to facilitate posting to the proper accounts:
- 47299-INV EXP NETASSET ALLOC
- 47310-OTHER INVEST EXPENSE - EXPEND (for gifts)
- 47305-OTHER INVEST EXPENSE - ENDOW (for endowments)
For donor advised endowment funds the excise tax will post to the EN journal ledger code. For all others it will post to the SU journal ledger code.