If anybody else could buy 5 seats at $200 without making a gift, you are
fine. If the only way she can buy those seats is because of the DAF gift
that's called bifurcation and disallowed by the IRS.
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, Mar 21, 2019 at 12:45 PM Scott Lober <
SCOTT.LOBER@phhs.org> wrote:
> Question:
>
>
>
> Board member wants to purchase sponsorship to an event. Cost is $5,000
> which includes a table with dinner and other benefits valued at $425 (5
> seats @ $85). She indicated she was paying for it through her DAF. We
> told her she cannot do this. Her response was that every other
> organization in town lets her do it. (Then she said, maybe they’re doing
> things wrong.)
>
>
>
> Then she suggested that she would make a $5,000 gift to the event, which
> we allow donors to do. Then she would purchase 5 seats at $200 each.
>
>
>
> She is the co-chair of the event and will be recognized at the event as a
> sponsor of the event at a particular level.
>
>
>
> Are there any problems with this?
>
>
>
> Thanks
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