FundSvcs Community

I have a unique gift situation I need a gut check on. We received a check from a family foundation along with a letter instructing us to use the funds to purchase a specific piece of equipment from a specific company. The letter is on the letterhead of the company, and signed by the company’s CEO. It says the donation is from the foundation on behalf of the company. Accompanying the letter is a price proposal and specification from the company prepared specifically for Lehigh. Of course, there's a twist to all this. The foundation is that of company's CEO (he's the president of the foundation too). I see two issues here. First, I believe this essentially creates a quid pro quo situation. By accepting the gift, we agree to purchase an specific piece of equipment from the company. Second, it seems the CEO is, inadvertently or not, funneling charitable dollars from his family foundation back into the coffers of the company. Either way, we can’t accept this, right? Thanks. - Sean Sean Shappell Sr. Director, Information Services Lehigh University Development & Alumni Relations 306 S. New St., Suite 500 Bethlehem, PA 18015 (610) 758-5814 (office) (570) 594-6397 (mobile) ses211@lehigh.edu GOcampaign.lehigh.edu #LehighGoCampaign

It sounds to me like IRS self-dealing laws are being violated left and right. I'd turn this over to my Counsel. But my tummy is as upset as yours :-). BTW, does Lehigh actually want/need the piece of equipment you are being told to buy? And is the value high enough that you would have to go through a bid process anyway? Even if not, would you automatically have gone to this specific company for this specific item? 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 Wed, Jan 9, 2019 at 1:38 PM Sean Shappell <ses211@lehigh.edu> wrote: > I have a unique gift situation I need a gut check on. We received a check > from a family foundation along with a letter instructing us to use the > funds to purchase a specific piece of equipment from a specific company. > The letter is on the letterhead of the company, and signed by the company’s > CEO. It says the donation is from the foundation on behalf of the company. > Accompanying the letter is a price proposal and specification from the > company prepared specifically for Lehigh. Of course, there's a twist to all > this. The foundation is that of company's CEO (he's the president of the > foundation too). > > I see two issues here. First, I believe this essentially creates a quid > pro quo situation. By accepting the gift, we agree to purchase an specific > piece of equipment from the company. Second, it seems the CEO is, > inadvertently or not, funneling charitable dollars from his family > foundation back into the coffers of the company. Either way, we can’t > accept this, right? > > Thanks. > > - Sean > > Sean Shappell > > Sr. Director, Information Services > > Lehigh University Development & Alumni Relations > > 306 S. New St., Suite 500 > > Bethlehem, PA 18015 > > > (610) 758-5814 (office) > > (570) 594-6397 (mobile) > > ses211@lehigh.edu > > GOcampaign.lehigh.edu > > #LehighGoCampaign > > > <http://gocampaign.lehigh.edu> >

John and Aaron, Thanks for ensuring me I was able to see this clearly through all the year end fog still floating around in my brain. John, To answer your question, yes, we do actually want/need this piece of equipment. The receiving department has been after it for some time. The value is also relatively high (in the $250K range). I don’t know enough about the equipment to know if it’s specialized enough that this specific model is needed or if it would have been bid out. Thanks again! - Sean Sean Shappell Sr. Director, Information Services Lehigh University Development & Alumni Relations 306 S. New St., Suite 500 Bethlehem, PA 18015 (610) 758-5814 (office) (570) 594-6397 (mobile) ses211@lehigh.edu GOcampaign.lehigh.edu #LehighGoCampaign On Jan 9, 2019, 1:43 PM -0500, John Taylor <johntaylorconsulting@gmail.com>, wrote: > It sounds to me like IRS self-dealing laws are being violated left and right.  I'd turn this over to my Counsel.  But my tummy is as upset as yours :-). > > BTW, does Lehigh actually want/need the piece of equipment you are being told to buy?  And is the value high enough that you would have to go through a bid process anyway?  Even if not, would you automatically have gone to this specific company for this specific item? > > 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 Wed, Jan 9, 2019 at 1:38 PM Sean Shappell <ses211@lehigh.edu> wrote: > > > I have a unique gift situation I need a gut check on. We received a check from a family foundation along with a letter instructing us to use the funds to purchase a specific piece of equipment from a specific company. The letter is on the letterhead of the company, and signed by the company’s CEO. It says the donation is from the foundation on behalf of the company. Accompanying the letter is a price proposal and specification from the company prepared specifically for Lehigh. Of course, there's a twist to all this. The foundation is that of company's CEO (he's the president of the foundation too). > > > > > > I see two issues here. First, I believe this essentially creates a quid pro quo situation. By accepting the gift, we agree to purchase an specific piece of equipment from the company. Second, it seems the CEO is, inadvertently or not, funneling charitable dollars from his family foundation back into the coffers of the company. Either way, we can’t accept this, right? > > > > > > Thanks. > > > > > > - Sean > > > > > > Sean Shappell > > > Sr. Director, Information Services > > > Lehigh University Development & Alumni Relations > > > 306 S. New St., Suite 500 > > > Bethlehem, PA 18015 > > > > > > (610) 758-5814 (office) > > > (570) 594-6397 (mobile) > > > ses211@lehigh.edu > > > GOcampaign.lehigh.edu > > > #LehighGoCampaign > > >

I would suggest that at that dollar amount Lehigh would insist on a bid process. $25,000 is a common level above which multiple estimates are required. So that could be one additional area to pursue with Counsel. 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 Wed, Jan 9, 2019 at 1:49 PM Sean Shappell <ses211@lehigh.edu> wrote: > John and Aaron, > > Thanks for ensuring me I was able to see this clearly through all the year > end fog still floating around in my brain. > > John, > > To answer your question, yes, we do actually want/need this piece of > equipment. The receiving department has been after it for some time. The > value is also relatively high (in the $250K range). I don’t know enough > about the equipment to know if it’s specialized enough that this specific > model is needed or if it would have been bid out. > > Thanks again! > > - Sean > > Sean Shappell > > Sr. Director, Information Services > > Lehigh University Development & Alumni Relations > > 306 S. New St., Suite 500 > > Bethlehem, PA 18015 > > > (610) 758-5814 (office) > > (570) 594-6397 (mobile) > > ses211@lehigh.edu > > GOcampaign.lehigh.edu > > #LehighGoCampaign > > > <http://gocampaign.lehigh.edu> > On Jan 9, 2019, 1:43 PM -0500, John Taylor <johntaylorconsulting@gmail.com>, > wrote: > > It sounds to me like IRS self-dealing laws are being violated left and > right. I'd turn this over to my Counsel. But my tummy is as upset as > yours :-). > > BTW, does Lehigh actually want/need the piece of equipment you are being > told to buy? And is the value high enough that you would have to go > through a bid process anyway? Even if not, would you automatically have > gone to this specific company for this specific item? > > 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 Wed, Jan 9, 2019 at 1:38 PM Sean Shappell <ses211@lehigh.edu> wrote: > >> I have a unique gift situation I need a gut check on. We received a check >> from a family foundation along with a letter instructing us to use the >> funds to purchase a specific piece of equipment from a specific company. >> The letter is on the letterhead of the company, and signed by the company’s >> CEO. It says the donation is from the foundation on behalf of the company. >> Accompanying the letter is a price proposal and specification from the >> company prepared specifically for Lehigh. Of course, there's a twist to all >> this. The foundation is that of company's CEO (he's the president of the >> foundation too). >> >> I see two issues here. First, I believe this essentially creates a quid >> pro quo situation. By accepting the gift, we agree to purchase an specific >> piece of equipment from the company. Second, it seems the CEO is, >> inadvertently or not, funneling charitable dollars from his family >> foundation back into the coffers of the company. Either way, we can’t >> accept this, right? >> >> Thanks. >> >> - Sean >> >> Sean Shappell >> >> Sr. Director, Information Services >> >> Lehigh University Development & Alumni Relations >> >> 306 S. New St., Suite 500 >> >> Bethlehem, PA 18015 >> >> >> (610) 758-5814 (office) >> >> (570) 594-6397 (mobile) >> >> ses211@lehigh.edu >> >> GOcampaign.lehigh.edu >> >> #LehighGoCampaign >> >> >> <http://gocampaign.lehigh.edu> >> >

Run! Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Sean Shappell Sent: Wednesday, January 9, 2019 1:38 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Year end gift fun I have a unique gift situation I need a gut check on. We received a check from a family foundation along with a letter instructing us to use the funds to purchase a specific piece of equipment from a specific company. The letter is on the letterhead of the company, and signed by the company’s CEO. It says the donation is from the foundation on behalf of the company. Accompanying the letter is a price proposal and specification from the company prepared specifically for Lehigh. Of course, there's a twist to all this. The foundation is that of company's CEO (he's the president of the foundation too). I see two issues here. First, I believe this essentially creates a quid pro quo situation. By accepting the gift, we agree to purchase an specific piece of equipment from the company. Second, it seems the CEO is, inadvertently or not, funneling charitable dollars from his family foundation back into the coffers of the company. Either way, we can’t accept this, right? Thanks. - Sean Sean Shappell Sr. Director, Information Services Lehigh University Development & Alumni Relations 306 S. New St., Suite 500 Bethlehem, PA 18015 (610) 758-5814 (office) (570) 594-6397 (mobile) ses211@lehigh.edu<mailto:ses211@lehigh.edu> GOcampaign.lehigh.edu<https://urldefense.proofpoint.com/v2/url?u=http-3A__GOcampaign.lehigh.edu&d=DwMFaQ&c=kbmfwr1Yojg42sGEpaQh5ofMHBeTl9EI2eaqQZhHbOU&r=MraOYpMOnCsIdm9axhPA4iXJhhPExcCA4gBqoRhHvTU&m=BEQNMiJ-FdUqQ4g4nI-kudZfTKNv_B84cm454RUHwHk&s=pRu49xFlwxQ7kHK_3XyQuFxhWIjYqvrjdLGdFIC0Rro&e=> #LehighGoCampaign [https://lh6.googleusercontent.com/98EbHmG8VV5lttvQykLhUHYreVKad79rGJLhEDqRTsEbzQeBlOVKJe_gvVJYVZHRioa-OnRFZrYbs6xY7lrWTrF8_emd5Hqa0JtCj66A7H0CYYYPgL1OM2DZF5IoRSPpiePeCylo]<https://urldefense.proofpoint.com/v2/url?u=http-3A__gocampaign.lehigh.edu&d=DwMFaQ&c=kbmfwr1Yojg42sGEpaQh5ofMHBeTl9EI2eaqQZhHbOU&r=MraOYpMOnCsIdm9axhPA4iXJhhPExcCA4gBqoRhHvTU&m=BEQNMiJ-FdUqQ4g4nI-kudZfTKNv_B84cm454RUHwHk&s=OWsd4DqOo067LPuLdnGZC6itEAf_CYcWgaHogVfoHiE&e=>

[cid:image001.jpg@01D4A825.656B8AB0] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Sean Shappell Sent: Wednesday, January 9, 2019 1:38 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Year end gift fun I have a unique gift situation I need a gut check on. We received a check from a family foundation along with a letter instructing us to use the funds to purchase a specific piece of equipment from a specific company. The letter is on the letterhead of the company, and signed by the company’s CEO. It says the donation is from the foundation on behalf of the company. Accompanying the letter is a price proposal and specification from the company prepared specifically for Lehigh. Of course, there's a twist to all this. The foundation is that of company's CEO (he's the president of the foundation too). I see two issues here. First, I believe this essentially creates a quid pro quo situation. By accepting the gift, we agree to purchase an specific piece of equipment from the company. Second, it seems the CEO is, inadvertently or not, funneling charitable dollars from his family foundation back into the coffers of the company. Either way, we can’t accept this, right? Thanks. - Sean Sean Shappell Sr. Director, Information Services Lehigh University Development & Alumni Relations 306 S. New St., Suite 500 Bethlehem, PA 18015 (610) 758-5814 (office) (570) 594-6397 (mobile) ses211@lehigh.edu<mailto:ses211@lehigh.edu> GOcampaign.lehigh.edu<http://GOcampaign.lehigh.edu> #LehighGoCampaign [https://lh6.googleusercontent.com/98EbHmG8VV5lttvQykLhUHYreVKad79rGJLhEDqRTsEbzQeBlOVKJe_gvVJYVZHRioa-OnRFZrYbs6xY7lrWTrF8_emd5Hqa0JtCj66A7H0CYYYPgL1OM2DZF5IoRSPpiePeCylo]<http://gocampaign.lehigh.edu> ________________________________ This e-mail message (including any attachments) is for the sole use of the intended recipient(s) and may contain confidential and privileged information. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this message (including any attachments) is strictly prohibited. If you have received this message in error, please contact the sender by reply e-mail message and destroy all copies of the original message (including attachments).

Much laughter when I saw this. Ackbar always knows what’s up. CJ Jones Associate Director of Donor Services, Purdue Research Foundation Dauch Alumni Center | 403 W Wood St | West Lafayette, IN 47907 wcjones@prf.org<mailto:wcjones@prf.org> | DAUCH 3118 | (765) 496-3116 [cid:image002.png@01D4A826.4752A850]<http://www.purdue.edu/evertrue> [cid:image001.jpg@01D4A826.475C6C50] <https://takegiantleaps.com/> WARNING: CONFIDENTIALITY NOTICE The information enclosed with this transmission is the private, confidential property of the sender, and is privileged communication intended solely for the individual indicated above. If you are not the intended recipient, you are notified that any review, disclosure, copying, distribution, or the taking of any other action relevant to the contents of this transmission are strictly prohibited. If you have received this email in error, or are not the named recipient(s), please notify the sender immediately by sending a reply to this message that it was sent in error and delete this email from your system. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Greenbaum, Josh S Sent: Wednesday, January 09, 2019 2:13 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Year end gift fun [cid:image004.jpg@01D4A826.4752A850] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Sean Shappell Sent: Wednesday, January 9, 2019 1:38 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Year end gift fun I have a unique gift situation I need a gut check on. We received a check from a family foundation along with a letter instructing us to use the funds to purchase a specific piece of equipment from a specific company. The letter is on the letterhead of the company, and signed by the company’s CEO. It says the donation is from the foundation on behalf of the company. Accompanying the letter is a price proposal and specification from the company prepared specifically for Lehigh. Of course, there's a twist to all this. The foundation is that of company's CEO (he's the president of the foundation too). I see two issues here. First, I believe this essentially creates a quid pro quo situation. By accepting the gift, we agree to purchase an specific piece of equipment from the company. Second, it seems the CEO is, inadvertently or not, funneling charitable dollars from his family foundation back into the coffers of the company. Either way, we can’t accept this, right? Thanks. - Sean Sean Shappell Sr. Director, Information Services Lehigh University Development & Alumni Relations 306 S. New St., Suite 500 Bethlehem, PA 18015 (610) 758-5814 (office) (570) 594-6397 (mobile) ses211@lehigh.edu<mailto:ses211@lehigh.edu> GOcampaign.lehigh.edu<http://GOcampaign.lehigh.edu> #LehighGoCampaign [Image removed by sender.]<http://gocampaign.lehigh.edu> ________________________________ This e-mail message (including any attachments) is for the sole use of the intended recipient(s) and may contain confidential and privileged information. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this message (including any attachments) is strictly prohibited. If you have received this message in error, please contact the sender by reply e-mail message and destroy all copies of the original message (including attachments).