Thursday, 4:30 PM
'Worthless' stock gift turns into $13.9M for Pittsfield Boys and Girls Club
By Martin Finucane, Globe Staff
Officials at the Boys and Girls Club of Pittsfield say that when they received a gift of worthless stock a couple of years ago they briefly considered refusing it.
It's a good thing they didn't: The stock's value skyrocketed, eventually yielding the club nearly $14 million.
The club received the stock from a donor about two years ago, said club president John Donna. He said the club planned to make itself "bigger and better" with the money.
"We're all happy. This is a problem in a sense, but it's a nice problem to have," he said.
"It was worthless when we got it. ... The donor knew it had no value. We knew it had no value. But we obviously knew that it had potential," said Peter Bell, the club's executive director.
The club reaped $13.9 million when it eventually sold the stock.
Club officials aren't revealing the name of the benefactor, who asked for anonymity. They also say they're legally bound not to reveal the name of the private company whose stock they sold.
But Donna said the donor is "ecstatic about this ... very happy and pleased that it worked out that way."
Bell said the club, which has 5,200 members and 3,000 to 4,000 visitors a day, had a $4 million endowment before the gift. It now has an endowment of $18 million to $19 million.
The club sold the stock last December but didn't announce the sale until this week. Donna said club officials wanted to invest the money before announcing the club's good luck.
"We wanted to position this and get it invested around the community," he said. "These things take time."
Donna said the club, founded in 1900, is going to review its mission, talk to the community, and then announce growth plans sometime in the first half of next year.
