FundSvcs Community

Having more details is excellent. As the employee has paid taxes on the value of the points than any distribution of funds related to those points they now "own" would be a gift from the employee. The vendor merely is facilitating the exchange. 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 11:25 AM Jones, Carol B <Carol.Jones2@uhhospitals.org> wrote: > After more research, I found out a couple of important pieces of > information. > > > > · When points are awarded, the organization “grosses up” the value > of the points to cover the amount to be paid for taxes to result in a net > zero impact on the employee’s income. For example: > > o Gross Pay: $60 > > o Taxes: $20 > > o Post-tax deduction: $40 > > o Net Pay: $0 > > · The points are held by an external vendor. Our organization pays > the cash value of employee points to the vendor when the employee chooses > to redeem any of his or her points. The vendor then handles any redemption > processing for gift cards or merchandise. > > > > In this scenario, it appears that the vendor would be the legal donor. > Employees would receive soft credit. Do you agree? > > *OR* > > Since taxes are shown as paid on the employee’s paystub, would the > employee be considered the legal donor? (I’m assuming not since the funds > would come from the vendor.) > > > > Thanks, > > Carol > > > > *Carol BC Jones* > > *Manager, Development Data and Reporting* > > Institutional Relations and Development > > University Hospitals > > Cleveland, OH > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Wednesday, March 27, 2019 12:21 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] [External] Re: [FUNDSVCS] Donating unused points > > > > 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 > > 11100 Euclid Avenue > > Mailstop: WLK-5062 > > Cleveland, OH 44106 > > Phone: (216) 983-5637; Fax: (216) 201-5211 > > > > Visit us at www.UHhospitals.org. > > The enclosed information is STRICTLY CONFIDENTIAL and is intended for the > use of the addressee only. University Hospitals and its affiliates disclaim > any responsibility for unauthorized disclosure of this information to > anyone > other than the addressee. > > Federal and Ohio law protect patient medical information, including > psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, > alcohol, and/or drug_dependence or abuse disclosed in this email. Federal > regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and > 3701.243 prohibit disclosure of this information without the specific > written consent of the person to whom it pertains, or as otherwise > permitted > by law. > > Visit us at www.UHhospitals.org. > > The enclosed information is STRICTLY CONFIDENTIAL and is intended for the > use of the addressee only. University Hospitals and its affiliates disclaim > any responsibility for unauthorized disclosure of this information to > anyone > other than the addressee. > > Federal and Ohio law protect patient medical information, including > psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, > alcohol, and/or drug_dependence or abuse disclosed in this email. Federal > regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and > 3701.243 prohibit disclosure of this information without the specific > written consent of the person to whom it pertains, or as otherwise > permitted > by law. > > > > > **** This email originated from an *EXTERNAL sender* to CHOP. Proceed > with caution when replying, opening attachments, or clicking links. Do not > disclose your CHOP credentials, employee information, or protected health > information to a potential hacker****. > > Visit us at www.UHhospitals.org. > > The enclosed information is STRICTLY CONFIDENTIAL and is intended for the > use of the addressee only. University Hospitals and its affiliates disclaim > any responsibility for unauthorized disclosure of this information to > anyone > other than the addressee. > > Federal and Ohio law protect patient medical information, including > psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, > alcohol, and/or drug_dependence or abuse disclosed in this email. Federal > regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and > 3701.243 prohibit disclosure of this information without the specific > written consent of the person to whom it pertains, or as otherwise > permitted > by law. >

After more research, I found out a couple of important pieces of information. · When points are awarded, the organization “grosses up” the value of the points to cover the amount to be paid for taxes to result in a net zero impact on the employee’s income. For example: o Gross Pay: $60 o Taxes: $20 o Post-tax deduction: $40 o Net Pay: $0 · The points are held by an external vendor. Our organization pays the cash value of employee points to the vendor when the employee chooses to redeem any of his or her points. The vendor then handles any redemption processing for gift cards or merchandise. In this scenario, it appears that the vendor would be the legal donor. Employees would receive soft credit. Do you agree? OR Since taxes are shown as paid on the employee’s paystub, would the employee be considered the legal donor? (I’m assuming not since the funds would come from the vendor.) Thanks, Carol Carol BC Jones Manager, Development Data and Reporting Institutional Relations and Development University Hospitals Cleveland, OH From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 12:21 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] [External] Re: [FUNDSVCS] Donating unused points 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<mailto: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<mailto: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<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 11:56 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto: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<mailto: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<mailto: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<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 11:34 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto: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<mailto: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<mailto: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 11100 Euclid Avenue Mailstop: WLK-5062 Cleveland, OH 44106 Phone: (216) 983-5637; Fax: (216) 201-5211 Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. **** This email originated from an EXTERNAL sender to CHOP. Proceed with caution when replying, opening attachments, or clicking links. Do not disclose your CHOP credentials, employee information, or protected health information to a potential hacker****. Visit us at www.UHhospitals.org. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law.

Thanks very much, John! Carol From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Tuesday, April 02, 2019 11:34 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] UPDATE: Donating unused points Having more details is excellent. As the employee has paid taxes on the value of the points than any distribution of funds related to those points they now "own" would be a gift from the employee. The vendor merely is facilitating the exchange. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 2, 2019 at 11:25 AM Jones, Carol B <Carol.Jones2@uhhospitals.org<mailto:Carol.Jones2@uhhospitals.org>> wrote: After more research, I found out a couple of important pieces of information. • When points are awarded, the organization “grosses up” the value of the points to cover the amount to be paid for taxes to result in a net zero impact on the employee’s income. For example: o Gross Pay: $60 o Taxes: $20 o Post-tax deduction: $40 o Net Pay: $0 • The points are held by an external vendor. Our organization pays the cash value of employee points to the vendor when the employee chooses to redeem any of his or her points. The vendor then handles any redemption processing for gift cards or merchandise. In this scenario, it appears that the vendor would be the legal donor. Employees would receive soft credit. Do you agree? OR Since taxes are shown as paid on the employee’s paystub, would the employee be considered the legal donor? (I’m assuming not since the funds would come from the vendor.) Thanks, Carol Carol BC Jones Manager, Development Data and Reporting Institutional Relations and Development University Hospitals Cleveland, OH From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 12:21 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] [External] Re: [FUNDSVCS] Donating unused points 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<mailto: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<mailto: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<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 11:56 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto: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<mailto: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<mailto: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<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 11:34 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto: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<mailto: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<mailto: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 11100 Euclid Avenue Mailstop: WLK-5062 Cleveland, OH 44106 Phone: (216) 983-5637; Fax: (216) 201-5211 Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. **** This email originated from an EXTERNAL sender to CHOP. Proceed with caution when replying, opening attachments, or clicking links. Do not disclose your CHOP credentials, employee information, or protected health information to a potential hacker****. Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. Visit us at www.UHhospitals.org. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law.

I would want to review all of the documentation surrounding this transaction, but if I was satisfied that the vendor was acting as the legal agent for the employee - and since I received cash and not points - I would be inclined to treat the payment as a cash gift. 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, Apr 4, 2019 at 9:37 AM Jones, Carol B <Carol.Jones2@uhhospitals.org> wrote: > John, just to clarify—would we receipt the employee for the actual dollar > amount received via the vendor as a cash gift, or as a gift in-kind with no > dollar amount? > > > > Carol > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Tuesday, April 02, 2019 11:34 AM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] UPDATE: Donating unused points > > > > Having more details is excellent. > > > > As the employee has paid taxes on the value of the points than any > distribution of funds related to those points they now "own" would be a > gift from the employee. The vendor merely is facilitating the exchange. > > > > 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 11:25 AM Jones, Carol B < > Carol.Jones2@uhhospitals.org> wrote: > > After more research, I found out a couple of important pieces of > information. > > > > · When points are awarded, the organization “grosses up” the value > of the points to cover the amount to be paid for taxes to result in a net > zero impact on the employee’s income. For example: > > o Gross Pay: $60 > > o Taxes: $20 > > o Post-tax deduction: $40 > > o Net Pay: $0 > > · The points are held by an external vendor. Our organization pays > the cash value of employee points to the vendor when the employee chooses > to redeem any of his or her points. The vendor then handles any redemption > processing for gift cards or merchandise. > > > > In this scenario, it appears that the vendor would be the legal donor. > Employees would receive soft credit. Do you agree? > > *OR* > > Since taxes are shown as paid on the employee’s paystub, would the > employee be considered the legal donor? (I’m assuming not since the funds > would come from the vendor.) > > > > Thanks, > > Carol > > > > *Carol BC Jones* > > *Manager, Development Data and Reporting* > > Institutional Relations and Development > > University Hospitals > > Cleveland, OH > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Wednesday, March 27, 2019 12:21 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] [External] Re: [FUNDSVCS] Donating unused points > > > > 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 > > 11100 Euclid Avenue > > Mailstop: WLK-5062 > > Cleveland, OH 44106 > > Phone: (216) 983-5637; Fax: (216) 201-5211 > > > > Visit us at www.UHhospitals.org. > > The enclosed information is STRICTLY CONFIDENTIAL and is intended for the > use of the addressee only. University Hospitals and its affiliates disclaim > any responsibility for unauthorized disclosure of this information to > anyone > other than the addressee. > > Federal and Ohio law protect patient medical information, including > psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, > alcohol, and/or drug_dependence or abuse disclosed in this email. Federal > regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and > 3701.243 prohibit disclosure of this information without the specific > written consent of the person to whom it pertains, or as otherwise > permitted > by law. > > Visit us at www.UHhospitals.org. > > The enclosed information is STRICTLY CONFIDENTIAL and is intended for the > use of the addressee only. University Hospitals and its affiliates disclaim > any responsibility for unauthorized disclosure of this information to > anyone > other than the addressee. > > Federal and Ohio law protect patient medical information, including > psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, > alcohol, and/or drug_dependence or abuse disclosed in this email. Federal > regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and > 3701.243 prohibit disclosure of this information without the specific > written consent of the person to whom it pertains, or as otherwise > permitted > by law. > > > > > **** This email originated from an *EXTERNAL sender* to CHOP. Proceed > with caution when replying, opening attachments, or clicking links. Do not > disclose your CHOP credentials, employee information, or protected health > information to a potential hacker****. > > Visit us at www.UHhospitals.org. > > The enclosed information is STRICTLY CONFIDENTIAL and is intended for the > use of the addressee only. University Hospitals and its affiliates disclaim > any responsibility for unauthorized disclosure of this information to > anyone > other than the addressee. > > Federal and Ohio law protect patient medical information, including > psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, > alcohol, and/or drug_dependence or abuse disclosed in this email. Federal > regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and > 3701.243 prohibit disclosure of this information without the specific > written consent of the person to whom it pertains, or as otherwise > permitted > by law. > > Visit us at www.UHhospitals.org. > > The enclosed information is STRICTLY CONFIDENTIAL and is intended for the > use of the addressee only. University Hospitals and its affiliates disclaim > any responsibility for unauthorized disclosure of this information to > anyone > other than the addressee. > > Federal and Ohio law protect patient medical information, including > psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, > alcohol, and/or drug_dependence or abuse disclosed in this email. Federal > regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and > 3701.243 prohibit disclosure of this information without the specific > written consent of the person to whom it pertains, or as otherwise > permitted > by law. >

John, just to clarify—would we receipt the employee for the actual dollar amount received via the vendor as a cash gift, or as a gift in-kind with no dollar amount? Carol From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Tuesday, April 02, 2019 11:34 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] UPDATE: Donating unused points Having more details is excellent. As the employee has paid taxes on the value of the points than any distribution of funds related to those points they now "own" would be a gift from the employee. The vendor merely is facilitating the exchange. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 2, 2019 at 11:25 AM Jones, Carol B <Carol.Jones2@uhhospitals.org<mailto:Carol.Jones2@uhhospitals.org>> wrote: After more research, I found out a couple of important pieces of information. • When points are awarded, the organization “grosses up” the value of the points to cover the amount to be paid for taxes to result in a net zero impact on the employee’s income. For example: o Gross Pay: $60 o Taxes: $20 o Post-tax deduction: $40 o Net Pay: $0 • The points are held by an external vendor. Our organization pays the cash value of employee points to the vendor when the employee chooses to redeem any of his or her points. The vendor then handles any redemption processing for gift cards or merchandise. In this scenario, it appears that the vendor would be the legal donor. Employees would receive soft credit. Do you agree? OR Since taxes are shown as paid on the employee’s paystub, would the employee be considered the legal donor? (I’m assuming not since the funds would come from the vendor.) Thanks, Carol Carol BC Jones Manager, Development Data and Reporting Institutional Relations and Development University Hospitals Cleveland, OH From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 12:21 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] [External] Re: [FUNDSVCS] Donating unused points 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<mailto: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<mailto: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<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 11:56 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto: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<mailto: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<mailto: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<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 11:34 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto: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<mailto: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<mailto: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 11100 Euclid Avenue Mailstop: WLK-5062 Cleveland, OH 44106 Phone: (216) 983-5637; Fax: (216) 201-5211 Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. **** This email originated from an EXTERNAL sender to CHOP. Proceed with caution when replying, opening attachments, or clicking links. Do not disclose your CHOP credentials, employee information, or protected health information to a potential hacker****. Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. Visit us at www.UHhospitals.org. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law.

Thank you. Carol From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Thursday, April 04, 2019 9:41 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] UPDATE: Donating unused points I would want to review all of the documentation surrounding this transaction, but if I was satisfied that the vendor was acting as the legal agent for the employee - and since I received cash and not points - I would be inclined to treat the payment as a cash gift. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Apr 4, 2019 at 9:37 AM Jones, Carol B <Carol.Jones2@uhhospitals.org<mailto:Carol.Jones2@uhhospitals.org>> wrote: John, just to clarify—would we receipt the employee for the actual dollar amount received via the vendor as a cash gift, or as a gift in-kind with no dollar amount? Carol From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Tuesday, April 02, 2019 11:34 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] UPDATE: Donating unused points Having more details is excellent. As the employee has paid taxes on the value of the points than any distribution of funds related to those points they now "own" would be a gift from the employee. The vendor merely is facilitating the exchange. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 2, 2019 at 11:25 AM Jones, Carol B <Carol.Jones2@uhhospitals.org<mailto:Carol.Jones2@uhhospitals.org>> wrote: After more research, I found out a couple of important pieces of information. • When points are awarded, the organization “grosses up” the value of the points to cover the amount to be paid for taxes to result in a net zero impact on the employee’s income. For example: o Gross Pay: $60 o Taxes: $20 o Post-tax deduction: $40 o Net Pay: $0 • The points are held by an external vendor. Our organization pays the cash value of employee points to the vendor when the employee chooses to redeem any of his or her points. The vendor then handles any redemption processing for gift cards or merchandise. In this scenario, it appears that the vendor would be the legal donor. Employees would receive soft credit. Do you agree? OR Since taxes are shown as paid on the employee’s paystub, would the employee be considered the legal donor? (I’m assuming not since the funds would come from the vendor.) Thanks, Carol Carol BC Jones Manager, Development Data and Reporting Institutional Relations and Development University Hospitals Cleveland, OH From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 12:21 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] [External] Re: [FUNDSVCS] Donating unused points 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<mailto: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<mailto: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<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 11:56 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto: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<mailto: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<mailto: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<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, March 27, 2019 11:34 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto: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<mailto: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<mailto: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 11100 Euclid Avenue Mailstop: WLK-5062 Cleveland, OH 44106 Phone: (216) 983-5637; Fax: (216) 201-5211 Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. **** This email originated from an EXTERNAL sender to CHOP. Proceed with caution when replying, opening attachments, or clicking links. Do not disclose your CHOP credentials, employee information, or protected health information to a potential hacker****. Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. Visit us at www.UHhospitals.org<http://www.UHhospitals.org>. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law. Visit us at www.UHhospitals.org. The enclosed information is STRICTLY CONFIDENTIAL and is intended for the use of the addressee only. University Hospitals and its affiliates disclaim any responsibility for unauthorized disclosure of this information to anyone other than the addressee. Federal and Ohio law protect patient medical information, including psychiatric_disorders, (H.I.V) test results, A.I.Ds-related conditions, alcohol, and/or drug_dependence or abuse disclosed in this email. Federal regulation (42 CFR Part 2) and Ohio Revised Code section 5122.31 and 3701.243 prohibit disclosure of this information without the specific written consent of the person to whom it pertains, or as otherwise permitted by law.