FundSvcs Community

I would simply explain to them that the IRS prohibits treating gifts of services as tax-deductible - and share IRS Publication 526 with them. But you should go on to express your gratitude and appreciation and assure them that they will be recognized internally for the corresponding value of their gift. The IRS simply will not permit you to issue a receipt. 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 Thu, Jan 24, 2019 at 12:14 PM Paula Campbell <pcampbell@lincolnfdn.org> wrote: > I am looking for help in responding to a problematic donor who is looking > for an acknowledgment letter for "in-kind" work of extra painting and > flooring they performed at one of our properties. In their request for a > letter, they have provided us with what they state is the "value" of this > work. Please note, they were paid for the original work, but they want to > claim an in-kind donation for what had to redo because the work was not > done properly in the first place. > > These are individuals with significant influence and connections to > members of our board, so we have to be tactful in our response to their > request. Any suggestions on a graceful way to respond would be greatly > appreciated. > > > Paula L. Campbell > Director Development > [Description: Description: lf logo] > 502.585.4733 ext. 203 > www.lincolnfdn.org<http://www.lincolnfdn.org/> >

PS - Your email only references the "work" they performed. If they also provided material (paint and flooring) those would be deductible as in-kind donations and you could issue a receipt - but without indicating any value (per IRS Publication 1771). 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 Thu, Jan 24, 2019 at 12:19 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > I would simply explain to them that the IRS prohibits treating gifts of > services as tax-deductible - and share IRS Publication 526 with them. But > you should go on to express your gratitude and appreciation and assure > them that they will be recognized internally for the corresponding value of > their gift. The IRS simply will not permit you to issue a receipt. > > 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 Thu, Jan 24, 2019 at 12:14 PM Paula Campbell <pcampbell@lincolnfdn.org> > wrote: > >> I am looking for help in responding to a problematic donor who is looking >> for an acknowledgment letter for "in-kind" work of extra painting and >> flooring they performed at one of our properties. In their request for a >> letter, they have provided us with what they state is the "value" of this >> work. Please note, they were paid for the original work, but they want to >> claim an in-kind donation for what had to redo because the work was not >> done properly in the first place. >> >> These are individuals with significant influence and connections to >> members of our board, so we have to be tactful in our response to their >> request. Any suggestions on a graceful way to respond would be greatly >> appreciated. >> >> >> Paula L. Campbell >> Director Development >> [Description: Description: lf logo] >> 502.585.4733 ext. 203 >> www.lincolnfdn.org<http://www.lincolnfdn.org/> >> >

TIME OUT! After rereading are you saying that it was these "donors" who messed up the work to begin with that is now having to be redone by them? If so I wouldn't credit them for a single penny as I trust their having to redo *their* poor work is contractually required! 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 Thu, Jan 24, 2019 at 12:43 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > PS - Your email only references the "work" they performed. If they also > provided material (paint and flooring) those would be deductible as in-kind > donations and you could issue a receipt - but without indicating any value > (per IRS Publication 1771). > > 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 Thu, Jan 24, 2019 at 12:19 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> I would simply explain to them that the IRS prohibits treating gifts of >> services as tax-deductible - and share IRS Publication 526 with them. But >> you should go on to express your gratitude and appreciation and assure >> them that they will be recognized internally for the corresponding value of >> their gift. The IRS simply will not permit you to issue a receipt. >> >> 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 Thu, Jan 24, 2019 at 12:14 PM Paula Campbell <pcampbell@lincolnfdn.org> >> wrote: >> >>> I am looking for help in responding to a problematic donor who is >>> looking for an acknowledgment letter for "in-kind" work of extra painting >>> and flooring they performed at one of our properties. In their request for >>> a letter, they have provided us with what they state is the "value" of this >>> work. Please note, they were paid for the original work, but they want to >>> claim an in-kind donation for what had to redo because the work was not >>> done properly in the first place. >>> >>> These are individuals with significant influence and connections to >>> members of our board, so we have to be tactful in our response to their >>> request. Any suggestions on a graceful way to respond would be greatly >>> appreciated. >>> >>> >>> Paula L. Campbell >>> Director Development >>> [Description: Description: lf logo] >>> 502.585.4733 ext. 203 >>> www.lincolnfdn.org<http://www.lincolnfdn.org/> >>> >>

I am looking for help in responding to a problematic donor who is looking for an acknowledgment letter for "in-kind" work of extra painting and flooring they performed at one of our properties. In their request for a letter, they have provided us with what they state is the "value" of this work. Please note, they were paid for the original work, but they want to claim an in-kind donation for what had to redo because the work was not done properly in the first place. These are individuals with significant influence and connections to members of our board, so we have to be tactful in our response to their request. Any suggestions on a graceful way to respond would be greatly appreciated. Paula L. Campbell Director Development [Description: Description: lf logo] 502.585.4733 ext. 203 www.lincolnfdn.org<http://www.lincolnfdn.org/>

Just tell the truth. The IRS precludes you from doing that they ask. And you don't want them or the foundation to get in trouble. Jennifer Barton Associate Director of Donor Relations  |  National Parks Conservation Association P: 202-454-3341  |  C: 202-823-2955  |  jbarton@npca.org  |  npca.org Your parks. Your turn.
Original Message----- From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Paula Campbell Sent: Thursday, January 24, 2019 12:13 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Question regarding the handling of an n-kind gift of service I am looking for help in responding to a problematic donor who is looking for an acknowledgment letter for "in-kind" work of extra painting and flooring they performed at one of our properties. In their request for a letter, they have provided us with what they state is the "value" of this work. Please note, they were paid for the original work, but they want to claim an in-kind donation for what had to redo because the work was not done properly in the first place. These are individuals with significant influence and connections to members of our board, so we have to be tactful in our response to their request. Any suggestions on a graceful way to respond would be greatly appreciated. Paula L. Campbell Director Development [Description: Description: lf logo] 502.585.4733 ext. 203 www.lincolnfdn.org<http://www.lincolnfdn.org/>

I'm with John. They are correcting an error made on their end, it is not a gift to correct it. Not sure of the best way to word it, but check the contract to make sure it clearly states that they are responsible for fixing anything they did wrong. Then reference that. They've been paid, they fixed what was wrong, end of story (and business transaction).