An Etymological Dictionary of the German Language/Annotated/Stift
Stift (1.), masculine, ‘peg, tack, style, pencil,’ from Middle High German stift (stëft), masculine, ‘sting, thorn, peg,’ Old High German stëft, masculine, ‘peg.’ A specifically High German word, which is probably derived from the Aryan root stī̆p, ‘to project,’ appearing in steif. Latin stîpes, ‘stake, trunk (of a tree),’ has also been connected with the same root.
Stift (2.), neuter, ‘charitable foundation, monastery,’ from early Middle High German stift, masculine and neuter, ‘foundation, establishing, building, ecclesiastical foundation,’ also ‘founding, regulation, arrangement,’ to which Middle High German stiften, ‘to found, build, arrange, regulate, devise, contrive, cause,’ is allied. While the substantive is unknown to Old High German, the Old High German verb stiften occurs with the same meaning as the Middle High German verb (compare Dutch sticht, stichten). The ht of Anglo-Saxon stihtan, ‘to regulate, incite,’ is abnormal; like Old Icelandic stétt, ‘stone floor, foundation, it seems to point to a Teutonic root stihw, ‘to build, found.’ The meaning of these cognates precludes any connection with Stift (1).