FundSvcs Community

Good morning! This is the first time our Foundation is holding a Sweetheart Gala to raise money for student scholarships. With the purchase of two tickets the donor receives dinner and drinks. On the receipts we have listed the FMV for all goods received along with all the other typical language. Today we received a check from a private Family Foundation to pay for two Gala tickets. The ticket recipients are immediate family members of the family foundation. Should we accept this check, or does this count as a disqualified person contribution? Thank you for the help! Katlyn Porter

You cannot accept the check as IRS rules prohibit anyone affiliated with a private foundation that makes a gift from receiving any benefits. You will find lengthy published material on this topic in the Legal/IRS section of the download site. The Foundation could reply to you stating something like, "We don't care." That's their legal jeopardy. However, I would still refuse the payment unless my own attorney gave me a written green light. 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 Mon, Feb 4, 2019 at 9:37 AM Katlyn Porter <kporter2@zanestate.edu> wrote: > Good morning! > > This is the first time our Foundation is holding a Sweetheart Gala to > raise money for student scholarships. With the purchase of two tickets the > donor receives dinner and drinks. On the receipts we have listed the FMV > for all goods received along with all the other typical language. Today we > received a check from a private Family Foundation to pay for two Gala > tickets. The ticket recipients are immediate family members of the family > foundation. Should we accept this check, or does this count as a > disqualified person contribution? Thank you for the help! > > Katlyn Porter >

Thank you, John! That was my thought on the matter as well. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Taylor Sent: Monday, February 4, 2019 9:46 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Private Foundations - Disqualified Persons You cannot accept the check as IRS rules prohibit anyone affiliated with a private foundation that makes a gift from receiving any benefits. You will find lengthy published material on this topic in the Legal/IRS section of the download site. The Foundation could reply to you stating something like, "We don't care." That's their legal jeopardy. However, I would still refuse the payment unless my own attorney gave me a written green light. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, Feb 4, 2019 at 9:37 AM Katlyn Porter <kporter2@zanestate.edu<mailto:kporter2@zanestate.edu>> wrote: Good morning! This is the first time our Foundation is holding a Sweetheart Gala to raise money for student scholarships. With the purchase of two tickets the donor receives dinner and drinks. On the receipts we have listed the FMV for all goods received along with all the other typical language. Today we received a check from a private Family Foundation to pay for two Gala tickets. The ticket recipients are immediate family members of the family foundation. Should we accept this check, or does this count as a disqualified person contribution? Thank you for the help! Katlyn Porter