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  • 1.  Private Foundation Gift

    Posted 02-06-2019 01:11 PM
    We received a gift from a private foundation where we are being instructed to apply a portion of it to greatest need and another portion toward a non-deductible membership with goods and services. In most cases in the past, Foundations restricted us from providing goods and services in exchange for the gift and it is noted on the documentation accompanying the gift. That is not so in this case. Is it acceptable to bifurcate this gift and honor this request?


  • 2.  Re: Private Foundation Gift

    Posted 02-06-2019 01:29 PM
    It is not permissible under the law to use private foundation gifts to benefit anyone affiliated with the foundation. I would probably pick up the phone and call the CFO to triple check. I have heard cases whether donors have stated, "The IRS be damned," and that really is their call. But I, on the other hand, would not intentionally do something I knew the IRS would not approve unless my own attorney gave me permission. 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, Feb 6, 2019 at 2:21 PM Jon Moore <jmo@sandiegozoo.org> wrote: > We received a gift from a private foundation where we are being instructed > to apply a portion of it to greatest need and another portion toward a > non-deductible membership with goods and services. In most cases in the > past, Foundations restricted us from providing goods and services in > exchange for the gift and it is noted on the documentation accompanying the > gift. That is not so in this case. Is it acceptable to bifurcate this > gift and honor this request? >