You are saying they are a DONATION - which they are. You are not promising
tax-deductibility. Even if not deductible at all they would still be a
"donation."
But it is best to have your lawyer approve any language. I have often seen
statements like, "The non-benefit portion of your contribution may be
deductible for tax purposes. Please seek guidance from your tax advisor."
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, Mar 13, 2019 at 1:32 PM Karen Dreessen <
dreessen@morningside.edu>
wrote:
> Ok, I’ll seek legal advice. My concern here is the answer listed on the
> website on whether or not the gift is tax deductible. Just want to make
> sure by saying, *“Yes! All gifts to the Annual Scholarship Fund are
> considered a donation.”* is not being considered tax advice.
>
>
>
> Thank you!
>
> Karen
>
>
>
> *From:* Advancement Services Discussion List [mailto:
>
FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor
> *Sent:* Wednesday, March 13, 2019 12:09 PM
> *To:*
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
> *Subject:* Re: [FUNDSVCS] Tax Advice
>
>
>
> Here is what IRS Publication 1771 states we must provide on a receipt.
> You should ask your attorney what, beyond this requirement, would
> constitute "tax advice":
>
>
>
> Publication 1771 (Rev. 3-2016)
>
> A required written disclosure statement must:
>
> inform a donor that the amount of the contribution that is deductible for
> federal income tax purposes is limited to the excess of money (and the fair
> market value of property other than money) contributed by the donor over
> the value of goods or services provided by the organization
>
> provide a donor with a good-faith estimate of the fair market value of the
> goods or services
>
>
>
> An organization must furnish a disclosure statement in connection with
> either the solicitation or the receipt of the quid pro quo contribution.
> The statement must be in writing and must be made in a manner that is
> likely to come to the attention of the donor. For example, a disclosure in
> small print within a larger document might not meet this requirement.
>
> 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, Mar 13, 2019 at 12:56 PM Karen Dreessen <
dreessen@morningside.edu>
> wrote:
>
>
>
>
>
> Our day of giving event is next week and the website is currently being
> set up. ALL gifts during the day of giving go towards the Annual
> Scholarship Fund. Under the FAQ section on the website, the question is
> posted as "Is my gift tax-deductible?" The answer listed is "Yes! All
> gifts to the Annual Scholarship Fund are considered a donation. Your gift
> will be acknowledged with a confirmation from PayPal, followed by a receipt
> letter from the Office of Institutional Advancement for your tax records."
>
> Is that answer ok or is that considered giving tax advice? Is there a
> better way to phrase it - the question and/or answer so we don't find
> ourselves in a predicament?
>
> Our receipt letter states "No goods or services were provided to the
> donor. Your contribution is tax deductible to the full extent of the law."
>
> Thanks in advance for your response.
>
> Karen Dreessen
> Advancement Services Manager
> Morningside College
> 800-831-0806, Ext. 5107
>
dreessen@morningside.edu
>
>