FundSvcs Community

Many years ago when I was at Duke I was made aware of an obscure IRS requirement for reporting gifts from a foreign source of $100,000 or more. I simply let my CFO know when this happened and he took it from there. Is anyone aware of whether such a requirement still exists for nonprofit organizations? And, if so, what IRS forms are required? I cannot find anything in my quick search of the IRS website. 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

Thank you - I note that the old $100,000 reporting requirement has been bumped to $250,000! John Taylor 919.816.5903 johntaylorconsulting@gmail.com Big ideas; small keyboard > On Apr 14, 2019, at 1:56 PM, Jon Garrow <jon.garrow@einstein.yu.edu> wrote: > > Section 117? This only applies to some higher ed organizations and I don't believe involves the IRS. https://studentaid.ed.gov/sa/about/data-center/school/foreign-gifts > > Jon W. Garrow > Director of Prospect Development > Office of Development > Montefiore Health System > Albert Einstein College of Medicine > 718.430.2564 office > jon.garrow@einstein.yu.edu > From: Advancement Services Discussion List [FUNDSVCS@LISTSERV.FUNDSVCS.ORG] on behalf of John Taylor [johntaylorconsulting@GMAIL.COM] > Sent: Saturday, April 13, 2019 11:22 > To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG > Subject: [FUNDSVCS] Reporting Gifts from Foreign Sources > > Many years ago when I was at Duke I was made aware of an obscure IRS requirement for reporting gifts from a foreign source of $100,000 or more. I simply let my CFO know when this happened and he took it from there. > > Is anyone aware of whether such a requirement still exists for nonprofit organizations? And, if so, what IRS forms are required? I cannot find anything in my quick search of the IRS website. > > 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

Section 117? This only applies to some higher ed organizations and I don't believe involves the IRS. https://studentaid.ed.gov/sa/about/data-center/school/foreign-gifts Jon W. Garrow Director of Prospect Development Office of Development Montefiore Health System Albert Einstein College of Medicine 718.430.2564 office jon.garrow@einstein.yu.edu ________________________________ From: Advancement Services Discussion List [FUNDSVCS@LISTSERV.FUNDSVCS.ORG] on behalf of John Taylor [johntaylorconsulting@GMAIL.COM] Sent: Saturday, April 13, 2019 11:22 To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Reporting Gifts from Foreign Sources Many years ago when I was at Duke I was made aware of an obscure IRS requirement for reporting gifts from a foreign source of $100,000 or more. I simply let my CFO know when this happened and he took it from there. Is anyone aware of whether such a requirement still exists for nonprofit organizations? And, if so, what IRS forms are required? I cannot find anything in my quick search of the IRS website. 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

I am meeting with our general counsel on this next week. As I understand from one of our GC, this reporting is required now regardless of dollar amount, the definition of "institution" is now to include affiliated entities, anonymous gifts are disallowed, and some bad consequences for willful non-compliance.

I don't know the definition of "foreign source". I guess it could be an individual who lives outside the U.S., an organization located outside the US. A grantee located outside the US. A foreign country (wouldn't be a gift)? On the gift side we ran a report of all gifts in the past year where the donor's address is outside the US. Would that be sufficient from the Advancement Office?  

I've been doing Advancement Services work since 2000 and have never submitted such a report to any government entity or to any office within any university I've worked at.

Does anyone have any further info before I meet w/our GC?

------------------------------
Robert Saunders
Assistant Vice Chancellor, Advancement Operations
University of North Carolina at Greensboro
robssaunders@gmail.com
------------------------------

Original Message:
Sent: 04-13-2019 11:22 AM
From: John Taylor
Subject: Reporting Gifts from Foreign Sources

Many years ago when I was at Duke I was made aware of an obscure IRS
requirement for reporting gifts from a foreign source of $100,000 or more.
I simply let my CFO know when this happened and he took it from there.

Is anyone aware of whether such a requirement still exists for nonprofit
organizations? And, if so, what IRS forms are required? I cannot find
anything in my quick search of the IRS website.

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

Original Message------

I am meeting with our general counsel on this next week. As I understand from one of our GC, this reporting is required now regardless of dollar amount, the definition of "institution" is now to include affiliated entities, anonymous gifts are disallowed, and some bad consequences for willful non-compliance.

I don't know the definition of "foreign source". I guess it could be an individual who lives outside the U.S., an organization located outside the US. A grantee located outside the US. A foreign country (wouldn't be a gift)? On the gift side we ran a report of all gifts in the past year where the donor's address is outside the US. Would that be sufficient from the Advancement Office?  

I've been doing Advancement Services work since 2000 and have never submitted such a report to any government entity or to any office within any university I've worked at.

Does anyone have any further info before I meet w/our GC?

------------------------------
Robert Saunders
Assistant Vice Chancellor, Advancement Operations
University of North Carolina at Greensboro
robssaunders@gmail.com
------------------------------

Original Message------

Yes, we do this every six months and use non-USA addresses as the parameter. For us, the threshold is $250K. Here is an article regarding that.

 

https://www.insidehighered.com/news/2019/07/09/colleges-call-more-clarity-rules-requiring-disclosure-foreign-gifts-and-contracts

 

Aaron

 

Aaron Forrest CPA

Senior Director Gift and Donor Services

University of Rochester Office of Advancement

Larry and Cindy Bloch Alumni and Advancement Center

300 East River Road

Rochester NY 14627

Office 585.275.2799 / Fax 585-273-4558

Email aaron.forrest@rochester.edu

 

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Original Message------

Take a look at these two links.

https://www.acenet.edu/Documents/Summary-Sec-117-and-ED-comment-request.pdf 

 https://www.govinfo.gov/content/pkg/FR-2019-09-06/pdf/2019-19296.pdf

Hi Aaron,

Do you pull on all active non-US addresses or only home address? We have donors with active, primary US home addresses AND non-US secondary home addresses. We pulled them in our initial lists since they had an active non US address on their records. For extra precaution our team, consisting of General Accounting, Legal, Compliance and Risk assessment, has agreed to include them in our foreign gifts reporting. I am hesitant to include them as a foreign source but cannot verify their US citizenship with any certainty. Have you come across this and do you include all active addresses or only primary home addresses? 

Iz

------------------------------
Izabel DeAraujo
Assistant VP, Advancement Systems and Technology
Drexel University
idd23@drexel.edu
------------------------------

Original Message:
Sent: 10-08-2019 10:12 AM
From: Aaron Forrest
Subject: Reporting Gifts from Foreign Sources

Yes, we do this every six months and use non-USA addresses as the parameter. For us, the threshold is $250K. Here is an article regarding that.

 

https://www.insidehighered.com/news/2019/07/09/colleges-call-more-clarity-rules-requiring-disclosure-foreign-gifts-and-contracts

 

Aaron

 

Aaron Forrest CPA

Senior Director Gift and Donor Services

University of Rochester Office of Advancement

Larry and Cindy Bloch Alumni and Advancement Center

300 East River Road

Rochester NY 14627

Office 585.275.2799 / Fax 585-273-4558

Email aaron.forrest@rochester.edu

 

      image001.gif@01C92E92.3629C5E0">  

P Please consider the environment before printing this email.

Confidentiality Notice:  This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited.

 

Original Message------

I am meeting with our general counsel on this next week. As I understand from one of our GC, this reporting is required now regardless of dollar amount, the definition of "institution" is now to include affiliated entities, anonymous gifts are disallowed, and some bad consequences for willful non-compliance.

I don't know the definition of "foreign source". I guess it could be an individual who lives outside the U.S., an organization located outside the US. A grantee located outside the US. A foreign country (wouldn't be a gift)? On the gift side we ran a report of all gifts in the past year where the donor's address is outside the US. Would that be sufficient from the Advancement Office?  

I've been doing Advancement Services work since 2000 and have never submitted such a report to any government entity or to any office within any university I've worked at.

Does anyone have any further info before I meet w/our GC?

------------------------------
Robert Saunders
Assistant Vice Chancellor, Advancement Operations
University of North Carolina at Greensboro
robssaunders@gmail.com
------------------------------