FundSvcs Community

Hey, I need y’all! A faculty member was recently awarded a $100K prize and would like to know if he can direct some of the prize funds through NYU to support his research. In doing so, he is hoping to reduce the impact of any taxes placed on the award. Is this possible? Best, Anthony Lockett-Larsen Major Gift Specialist | Gift Services New York University | Office of Gift Administration (212) 998-2735 | al3485@nyu.edu

Yes and no. He cannot "direct" the money if it's not his. So he has to first accept the entire prize. And some institutions have special rules regarding giving to your own research fund although that's perfectly legal as long as the individual cannot use those funds for their own personal benefit (supporting their research is a benefit to the University). If the individual does not want to pay taxes on all $100,000 then they must decline the award (or a portion). While doing so they could suggest that the awarding authority, instead, consider making a totally voluntary honoring contribution to NYU and specify the research he is performing. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Mar 12, 2019 at 2:04 PM Anthony Lockett-Larsen <al3485@nyu.edu> wrote: > Hey, I need y’all! > > > > A faculty member was recently awarded a $100K prize and would like to know > if he can direct some of the prize funds through NYU to support his > research. In doing so, he is hoping to reduce the impact of any taxes > placed on the award. > > > > Is this possible? > > > > > > Best, > > > > Anthony Lockett-Larsen > > Major Gift Specialist | Gift Services > > New York University | Office of Gift Administration > > (212) 998-2735 | al3485@nyu.edu > > >

Yup, that’s what I thought. Thanks, John. Best, Anthony Lockett-Larsen Major Gift Specialist | Gift Services New York University | Office of Gift Administration (212) 998-2735 | al3485@nyu.edu *From:* Advancement Services Discussion List [mailto: FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor *Sent:* Tuesday, March 12, 2019 2:13 PM *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG *Subject:* Re: Donating Prize Money Yes and no. He cannot "direct" the money if it's not his. So he has to first accept the entire prize. And some institutions have special rules regarding giving to your own research fund although that's perfectly legal as long as the individual cannot use those funds for their own personal benefit (supporting their research is a benefit to the University). If the individual does not want to pay taxes on all $100,000 then they must decline the award (or a portion). While doing so they could suggest that the awarding authority, instead, consider making a totally voluntary honoring contribution to NYU and specify the research he is performing. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Mar 12, 2019 at 2:04 PM Anthony Lockett-Larsen <al3485@nyu.edu> wrote: Hey, I need y’all! A faculty member was recently awarded a $100K prize and would like to know if he can direct some of the prize funds through NYU to support his research. In doing so, he is hoping to reduce the impact of any taxes placed on the award. Is this possible? Best, Anthony Lockett-Larsen Major Gift Specialist | Gift Services New York University | Office of Gift Administration (212) 998-2735 | al3485@nyu.edu