When you contribute stock and choose a custom liquidation, you can recommend that the contributed assets be held for a certain period of time or be sold in intervals on a monthly basis. Daffy reviews and confirms each recommendation before it is applied.
Daffy supports two options:
Sell Gradually:
A portion of the shares are sold right away, and then additional shares are sold every 30 days. The number of shares sold each month adjusts based on how many shares remain and how much time is left in the custom liquidation. Only whole shares are sold each month. Available options include; 6 months, 12 months, 18 months, 24 months, 30 months, or 36 months.
Example:
Sell 100 shares gradually over 6 months
Month 1 = 100/6 = 17 shares sold
Month 2 = 83/5 = 17 shares sold
Month 3 = 66/4 = 17 shares sold
Month 4 = 49/3 = 16 shares sold
Month 5 = 33/ 2 = 17 shares sold
Month 6 = 16/1 = 16 shares sold
Hold all shares:
You can recommend to hold all of the contributed shares, postponing liquidation until a later date. Available options are 6 months, 12 months, 18 months, 24 months, 36 months, or an indefinite hold.
In both cases, once shares are sold, the proceeds are added to your donor-advised fund and available for donations.
NOTE: Daffy retains the ultimate authority and control over any contributed assets and may deviate from any recommendations.