An Etymological Dictionary of the German Language/Stift
Stift (1.), m., ‘peg, tack, style, pencil,’ from MidHG. stift (stëft), m., ‘sting, thorn, peg,’ OHG. stëft, m., ‘peg.’ A specifically HG. word, which is probably derived from the Aryan root stī̆p, ‘to project,’ appearing in steif. Lat. stîpes, ‘stake, trunk (of a tree),’ has also been connected with the same root.
Stift (2.), n., ‘charitable foundation, monastery,’ from early MidHG. stift, m. and n., ‘foundation, establishing, building, ecclesiastical foundation,’ also ‘founding, regulation, arrangement,’ to which MidHG. stiften, ‘to found, build, arrange, regulate, devise, contrive, cause,’ is allied. While the subst. is unknown to OHG., the OHG. vb. stiften occurs with the same meaning as the MidHG. vb. (comp. Du. sticht, stichten). The ht of AS. stihtan, ‘to regulate, incite,’ is abnormal; like OIc. stétt, ‘stone floor, foundation, it seems to point to a Teut. root stihw, ‘to build, found.’ The meaning of these cognates precludes any connection with Stift (1).