FundSvcs Community

You are following the legal requirements of the IRS. How can that be wrong? And have you asked the legal donor - the DAF - if it is okay for you to jeopardize their tax status? John John Taylor 919.816.5903 johntaylorconsulting@gmail.com Big ideas; small keyboard > On Mar 8, 2019, at 9:38 AM, Tracey Mullane <tmullane@pih.org> wrote: > > We’re holding one of our first special event fundraisers and it’s been a process to educate everyone on the IRS rules re event sponsorships from DAFs, Family Foundations etc. > > Yesterday we got pushback from a high-profile donor who wanted to make a bifurcated sponsorship gift via his family foundation and personal checking account (who plans to attend and participate in the event). He ultimately is sending a personal check, FWIW. > > He said: “I have checked with my tax lawyer, who is very comfortable with the split, as are innumerable organizations in Boston, including the BSO, the ICA, the A.R.T., the MFA, the Gardner Museum, and virtually every organization I deal with.” > > So does this mean that my org is being super-savvy about avoiding DAF/Family Foundation/bifurcated gifts and we can all sleep better at night? > > OR - given his experience at other orgs and his lawyer’s ok - > > Are we are chumps making it difficult for donors to use their preferred giving vehicles to support this event? > > Thanks, > -t > > > Tracey Mullane > Director, Development Operations | Partners In Health > 800 Boylston St. Suite 300 | Boston, MA 02199-8190 > (857) 880-5729 | tmullane@pih.org > > <image001.jpg> > > >

Hi John - In this case it's a family foundation wanting to bifurcate their gift, and the individual who heads the foundation in his family's name has said his tax lawyer is OK with the bifurcation (and he will be attending the event).

If your attorney agrees and it's in writing from the Foundation I guess you can accept it. Make sure the receipt you issue is very clear as well as the donor record. Just remember that just because someone tells you it is okay to do something does not make it appropriate, IRS-compliant, or ethical. John John Taylor 919.816.5903 johntaylorconsulting@gmail.com Big ideas; small keyboard > On Mar 8, 2019, at 12:09 PM, Tracey Mullane <tmullane@pih.org> wrote: > > Hi John - > > In this case it's a family foundation wanting to bifurcate their gift, and the individual who heads the foundation in his family's name has said his tax lawyer is OK with the bifurcation (and he will be attending the event).

We're holding one of our first special event fundraisers and it's been a process to educate everyone on the IRS rules re event sponsorships from DAFs, Family Foundations etc. Yesterday we got pushback from a high-profile donor who wanted to make a bifurcated sponsorship gift via his family foundation and personal checking account (who plans to attend and participate in the event). He ultimately is sending a personal check, FWIW. He said: "I have checked with my tax lawyer, who is very comfortable with the split, as are innumerable organizations in Boston, including the BSO, the ICA, the A.R.T., the MFA, the Gardner Museum, and virtually every organization I deal with." So does this mean that my org is being super-savvy about avoiding DAF/Family Foundation/bifurcated gifts and we can all sleep better at night? OR - given his experience at other orgs and his lawyer's ok - Are we are chumps making it difficult for donors to use their preferred giving vehicles to support this event? Thanks, -t Tracey Mullane Director, Development Operations | Partners In Health 800 Boylston St. Suite 300 | Boston, MA 02199-8190 (857) 880-5729 | tmullane@pih.org<mailto:tmullane@pih.org> [cid:image001.jpg@01D33132.DEED3610]<http://www.pih.org/>

Hi, Tracey – I can appreciate your position, as I know of other organizations that have received similar feedback in the past (i.e. “Organization X is a large nonprofit and they do it, so it must be okay”). However, the IRS guidelines are what they are – and I completely agree with John. Michael Halverson, Ed.D. Senior Director of Advancement Services Loyola University Chicago T. 312-915-7283 | C. 320-363-4987<tel:320-363-4987> mhalverson@luc.edu<mailto:mhalverson@luc.edu> | www.luc.edu/advancement<http://www.luc.edu/advancement> From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Friday, March 08, 2019 9:10 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Event Sponsorships/Bifurcation - Donor experience suggests we are being uptight You are following the legal requirements of the IRS. How can that be wrong? And have you asked the legal donor - the DAF - if it is okay for you to jeopardize their tax status? John John Taylor 919.816.5903 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> Big ideas; small keyboard On Mar 8, 2019, at 9:38 AM, Tracey Mullane <tmullane@pih.org<mailto:tmullane@pih.org>> wrote: We’re holding one of our first special event fundraisers and it’s been a process to educate everyone on the IRS rules re event sponsorships from DAFs, Family Foundations etc. Yesterday we got pushback from a high-profile donor who wanted to make a bifurcated sponsorship gift via his family foundation and personal checking account (who plans to attend and participate in the event). He ultimately is sending a personal check, FWIW. He said: “I have checked with my tax lawyer, who is very comfortable with the split, as are innumerable organizations in Boston, including the BSO, the ICA, the A.R.T., the MFA, the Gardner Museum, and virtually every organization I deal with.” So does this mean that my org is being super-savvy about avoiding DAF/Family Foundation/bifurcated gifts and we can all sleep better at night? OR - given his experience at other orgs and his lawyer’s ok - Are we are chumps making it difficult for donors to use their preferred giving vehicles to support this event? Thanks, -t Tracey Mullane Director, Development Operations | Partners In Health 800 Boylston St. Suite 300 | Boston, MA 02199-8190 (857) 880-5729 | tmullane@pih.org<mailto:tmullane@pih.org> <image001.jpg><http://www.pih.org/>