I believe the original example pertained to the nonprofit organization
itself who offers points to its employees. This is not an external
company/point scenario.
However, in an external situation such as you describe, after verifying
that the points were not added to the employee's W-2 as income (it would
not be a 1099 situation I don't think) I would also treat it as a gift from
the company.
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, Mar 27, 2019 at 12:02 PM Gross, Debra <
GrossD@email.chop.edu> wrote:
> We get a check from the company that administers the program, when an
> employee donates their points. We hard credit the company and soft credit
> the employee. The dollar amount is pretty small and I don’t believe the
> employee gets a 1099.
>
>
>
> *From:* Advancement Services Discussion List <
>
FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *John Taylor
> *Sent:* Wednesday, March 27, 2019 11:56 AM
> *To:*
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
> *Subject:* [External] Re: [FUNDSVCS] Donating unused points
>
>
>
> I understood you to say that the employee had already paid taxes on the
> points they earned. If that is an accurate understanding, then they are
> the donor.
>
>
>
> How you handle the internal mechanics of "cashing in" the points and
> placing those dollars into a specific fund is completely up to you.
> However, I can already "hear" other departments arguing for a piece of the
> action. So it is possible you will encounter some political waters to
> navigate.
>
>
>
> 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, Mar 27, 2019 at 11:45 AM Jones, Carol B <
>
Carol.Jones2@uhhospitals.org> wrote:
>
> John, so you would see the employee and not the organization as the actual
> donor?
>
>
>
> The idea would be to give the cash value of the points, held by HR, to an
> unrestricted fund. Acceptable?
>
>
>
> Carol
>
>
>
> *From:* Advancement Services Discussion List [mailto:
>
FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor
> *Sent:* Wednesday, March 27, 2019 11:34 AM
> *To:*
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
> *Subject:* Re: [FUNDSVCS] Donating unused points
>
>
>
> If you are saying that the employees who earn the points are paying taxes
> on the fair market value of the points, then I think an argument can be
> made for the employee being able to donate these points back to the
> institution. Assuming, that is, they can be used by the institution. If
> they cannot be used, then you run into the unrelated use problem of the IRS
> which restricts the donors' donation to the cost basis of the gift.
>
>
>
> Regardless, if you and Counsel agree that these can be treated as gifts
> then they would be a gift-in-kind meaning that the receipt should only
> provide a description and no value.
>
>
>
> 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, Mar 27, 2019 at 11:28 AM Jones, Carol B <
>
Carol.Jones2@uhhospitals.org> wrote:
>
> Our organization has a program in which employees can express their
> appreciation to each other by awarding points for going above and beyond in
> their jobs. These points have a monetary value that can be redeemed for
> gift cards or merchandise. The money behind the points sits in a fund
> overseen by Human Resources, and the unused points are tracked for the
> individual employees to whom they were awarded.
>
>
>
> Two things to note:
>
> · Taxes for the points have already been paid.
>
> · The funds never touch the employee’s hands.
>
>
>
> Is it possible for points to be donated back to the organization as an
> unrestricted gift? Essentially, the donor is the organization itself and
> the employee would receive soft credit.
>
>
>
> Thanks,
>
> Carol
>
>
>
> *Carol BC Jones*
>
> *Manager, Development Data and Reporting*
>
> Institutional Relations and Development
>
> University Hospitals
>
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