What you are charging and what you are paying is not important. What is
the fair market value of the event? Whatever the FMV (NOT COST) determines
what you multiply by 4.
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 Tue, Apr 2, 2019 at 11:31 AM Anne Brown <
anneb@norwich.edu> wrote:
> Need help with assigning the right gift portion for a sponsorship.
>
> We have a dinner planned where the guests pay $50 per plate and our
> organization is paying $50 per plate. When we offer sponsorship and the
> donor will receive 4 seats at dinner for their sponsorship of $1,000, is
> their GIFT a or b below
>
> A) $1,000 received - gift portion is $800 (4*$50=$200 non gift *$50 is
> ticket price)
> B) $1,000 received - gift portion is $600 (4*$100=$400 non gift *$100
> is true cost to our organization per plate)
>