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Good Afternoon, A donor has made a gift for the purpose of "Fraternity and Sorority Life" in honor of a fraternity here on our campus. CASE guidelines say that gifts to social organizations such as sororities and fraternities, even if the organization is affiliated with the institution are not reportable to CASE or CAE but, can we record and receipt this as a gift? Thank you! Terri -- Terri Martin, bCRE Advancement Database Manager and Analyst University of Lynchburg 1501 Lakeside Drive Lynchburg, VA 24501 (434) 544-8337 martin_t@lynchburg.edu

No. It is the IRS that prohibits tax-deductible gifts to these organizations. As such, CASE does not permit us to include them in our fundraising totals. Whether the organization is affiliated or not isn't relevant. Now, there are related gifts that can be counted. For example, when I was at NC State we built a "Greek Village." And while we could not accept as gifts donations to specific houses, we could accept as gifts payments made for "infrastructure" such as paving of roads, landscaping of common areas, lighting, etc. as all of that was for use by the entire University community. 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, Feb 21, 2019 at 3:06 PM Martin, Terri <martin_t@lynchburg.edu> wrote: > Good Afternoon, > > A donor has made a gift for the purpose of "Fraternity and Sorority Life" > in honor of a fraternity here on our campus. CASE guidelines say that > gifts to social organizations such as sororities and fraternities, even if > the organization is affiliated with the institution are not reportable to > CASE or CAE but, can we record and receipt this as a gift? > > Thank you! > Terri > > -- > Terri Martin, bCRE > Advancement Database Manager and Analyst > University of Lynchburg > 1501 Lakeside Drive > Lynchburg, VA 24501 > (434) 544-8337 > martin_t@lynchburg.edu > > >

Thank you, John. On Thu, Feb 21, 2019 at 3:15 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > No. It is the IRS that prohibits tax-deductible gifts to these > organizations. As such, CASE does not permit us to include them in our > fundraising totals. Whether the organization is affiliated or not isn't > relevant. > > Now, there are related gifts that can be counted. For example, when I was > at NC State we built a "Greek Village." And while we could not accept as > gifts donations to specific houses, we could accept as gifts payments made > for "infrastructure" such as paving of roads, landscaping of common areas, > lighting, etc. as all of that was for use by the entire University > community. > > 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, Feb 21, 2019 at 3:06 PM Martin, Terri <martin_t@lynchburg.edu> > wrote: > >> Good Afternoon, >> >> A donor has made a gift for the purpose of "Fraternity and Sorority >> Life" in honor of a fraternity here on our campus. CASE guidelines say >> that gifts to social organizations such as sororities and fraternities, >> even if the organization is affiliated with the institution are not >> reportable to CASE or CAE but, can we record and receipt this as a gift? >> >> Thank you! >> Terri >> >> -- >> Terri Martin, bCRE >> Advancement Database Manager and Analyst >> University of Lynchburg >> 1501 Lakeside Drive >> Lynchburg, VA 24501 >> (434) 544-8337 >> martin_t@lynchburg.edu >> >> >> -- Terri Martin, bCRE Advancement Database Manager and Analyst University of Lynchburg 1501 Lakeside Drive Lynchburg, VA 24501 (434) 544-8337 martin_t@lynchburg.edu

Thank you, Alan. On Thu, Feb 21, 2019 at 3:19 PM Hejnal, Alan < 00000031f8bb5829-dmarc-request@listserv.fundsvcs.org> wrote: > The key issue is that social sororities and fraternities are recognized > under a different section of the tax code, and gifts to these organizations > do not qualify as charitable contributions for federal income tax > purposes. Therefore, the IRS is concerned that someone might intend to > make a gift for the benefit of such an organization *and* qualify a tax > deduction by making the gift through an organization that is qualified to > receive tax-deductible contribution, like a college or university. The IRS > is especially vigilant about gifts to support fraternity or sorority > housing, which it has allowed only in two incredibly narrow cases, but the > concern extends more broadly. > > > > So the fundamental question is whether this gift would primarily support > the charitable mission of the University. A gift in honor of a fraternity > wouldn’t be an issue, but if the gift had the effect of supporting a > fraternity, or supporting Greek organizations in general, rather than > supporting the charitable educational purpose of the university, would be > an issue. I suppose that it would depend on the details, but a gift for > “Fraternity and Sorority Life” doesn’t *sound* like a gift that would > primarily support the university’s educational mission. But only your > counsel could say for sure. > > > > My US$0.02 worth; the usual disclaimers apply. > > > > Good luck! > > > > *Alan* > > > > *Alan S. Hejnal * > > Data Quality Manager > > Smithsonian Institution - Office of Advancement > > 600 Maryland Avenue SW, Suite 600E > > P.O. Box 37012, MRC 527 > > Washington, DC 20013-7012 > > (: 202-633-8754 | *: HejnalA@si.edu > > > [image: SNAGHTML5cbfa34] <https://www.si.edu/> > [image: AASP_FundSvcs_LOGO-01(040pct)(mark)] > > > > > > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *Martin, Terri > *Sent:* Thursday, February 21, 2019 2:57 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* [FUNDSVCS] A Gift for a Fraternity > > > > Good Afternoon, > > > > A donor has made a gift for the purpose of "Fraternity and Sorority Life" > in honor of a fraternity here on our campus. CASE guidelines say that > gifts to social organizations such as sororities and fraternities, even if > the organization is affiliated with the institution are not reportable to > CASE or CAE but, can we record and receipt this as a gift? > > > > Thank you! > > Terri > > > > -- > > Terri Martin, bCRE > > Advancement Database Manager and Analyst > University of Lynchburg > > 1501 Lakeside Drive > > Lynchburg, VA 24501 > (434) 544-8337 > > martin_t@lynchburg.edu > > > -- Terri Martin, bCRE Advancement Database Manager and Analyst University of Lynchburg 1501 Lakeside Drive Lynchburg, VA 24501 (434) 544-8337 martin_t@lynchburg.edu

The key issue is that social sororities and fraternities are recognized under a different section of the tax code, and gifts to these organizations do not qualify as charitable contributions for federal income tax purposes. Therefore, the IRS is concerned that someone might intend to make a gift for the benefit of such an organization and qualify a tax deduction by making the gift through an organization that is qualified to receive tax-deductible contribution, like a college or university. The IRS is especially vigilant about gifts to support fraternity or sorority housing, which it has allowed only in two incredibly narrow cases, but the concern extends more broadly. So the fundamental question is whether this gift would primarily support the charitable mission of the University. A gift in honor of a fraternity wouldn’t be an issue, but if the gift had the effect of supporting a fraternity, or supporting Greek organizations in general, rather than supporting the charitable educational purpose of the university, would be an issue. I suppose that it would depend on the details, but a gift for “Fraternity and Sorority Life” doesn’t sound like a gift that would primarily support the university’s educational mission. But only your counsel could say for sure. My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 •: 202-633-8754 | •: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Martin, Terri Sent: Thursday, February 21, 2019 2:57 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] A Gift for a Fraternity Good Afternoon, A donor has made a gift for the purpose of "Fraternity and Sorority Life" in honor of a fraternity here on our campus. CASE guidelines say that gifts to social organizations such as sororities and fraternities, even if the organization is affiliated with the institution are not reportable to CASE or CAE but, can we record and receipt this as a gift? Thank you! Terri -- Terri Martin, bCRE Advancement Database Manager and Analyst University of Lynchburg 1501 Lakeside Drive Lynchburg, VA 24501 (434) 544-8337 martin_t@lynchburg.edu<mailto:martin_t@lynchburg.edu>