FundSvcs Community

Hello Listers, Our annual fund team is preparing for a fiscal year-end drive whereby donors would receive a complimentary pair of branded flip flops/sandals for making their gift. The cost per pair of branded sandals is $5.10. I have read through this document on the IRS website ( https://www.irs.gov/pub/irs-tege/rp_1990-12.pdf) but i'm not sure if i'm interpreting benefit disclosure requirements correctly, as it relates to a "low cost article". *Questions:* - Is a minimum gift amount required in order to not have to disclose a benefit amount? - If a minimum gift amount is required, what should that amount be? - If a donor underwrites the bulk purchase of the sandals, is a minimum gift amount or disclosure of benefit amount required? Many thanks! Tony Mercadal Director of Advancement Services Ransom Everglades School 3575 Main Highway Coconut Grove, FL 33133-5993 T: 305 460 2113 E: tmercadal@ransomeverglades.org W: www.ransomeverglades.org

You are reading a 30-year-old document. The numbers change annually. To receive a token item and not worry about disclosure, the total of ALL benefits must be under $11.10, must have the organization name or logo, and can only be given when a donor contributes $55.50+. Below $55.50 the full market value must be subtracted if the value exceeds 2% of the amount given. 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 Mon, Apr 22, 2019 at 1:26 PM Tony Mercadal < tmercadal@ransomeverglades.org> wrote: > Hello Listers, > > Our annual fund team is preparing for a fiscal year-end drive whereby > donors would receive a complimentary pair of branded flip flops/sandals for > making their gift. The cost per pair of branded sandals is $5.10. > > I have read through this document on the IRS website ( > https://www.irs.gov/pub/irs-tege/rp_1990-12.pdf) but i'm not sure if i'm > interpreting benefit disclosure requirements correctly, as it relates to a > "low cost article". > > *Questions:* > - Is a minimum gift amount required in order to not have to disclose a > benefit amount? > - If a minimum gift amount is required, what should that amount be? > - If a donor underwrites the bulk purchase of the sandals, is a minimum > gift amount or disclosure of benefit amount required? > > Many thanks! > > Tony Mercadal > > Director of Advancement Services > > Ransom Everglades School > > 3575 Main Highway > > Coconut Grove, FL 33133-5993 > > T: 305 460 2113 > > E: tmercadal@ransomeverglades.org > > W: www.ransomeverglades.org >

Tony – It doesn’t make a difference if someone underwrites the cost of the giveaway items – the value to the donor is what it is regardless of which entity actually paid for the item. (I thought I’d chime in since I get asked this question a lot.) Michael Halverson, Ed.D. Senior Director of Advancement Services Loyola University Chicago T. 312-915-7283 | C. 320-363-4987<tel:320-363-4987> mhalverson@luc.edu<mailto:mhalverson@luc.edu> | www.luc.edu/advancement<http://www.luc.edu/advancement> From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Monday, April 22, 2019 12:35 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Flip Flops (minimum gift amount/benefit value)? You are reading a 30-year-old document. The numbers change annually. To receive a token item and not worry about disclosure, the total of ALL benefits must be under $11.10, must have the organization name or logo, and can only be given when a donor contributes $55.50+. Below $55.50 the full market value must be subtracted if the value exceeds 2% of the amount given. 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 Mon, Apr 22, 2019 at 1:26 PM Tony Mercadal <tmercadal@ransomeverglades.org<mailto:tmercadal@ransomeverglades.org>> wrote: Hello Listers, Our annual fund team is preparing for a fiscal year-end drive whereby donors would receive a complimentary pair of branded flip flops/sandals for making their gift. The cost per pair of branded sandals is $5.10. I have read through this document on the IRS website (https://www.irs.gov/pub/irs-tege/rp_1990-12.pdf) but i'm not sure if i'm interpreting benefit disclosure requirements correctly, as it relates to a "low cost article". Questions: - Is a minimum gift amount required in order to not have to disclose a benefit amount? - If a minimum gift amount is required, what should that amount be? - If a donor underwrites the bulk purchase of the sandals, is a minimum gift amount or disclosure of benefit amount required? Many thanks! [https://lh5.googleusercontent.com/kPn0hen9KADRAx-1HZr6936zM3NE0IKMR8_dOMvaL0Z3B61BDCRqqTNV3-HTOTjQbNsNX71TKkZy3R6MYkge_EcDiuyHePnG0eKfYVyB_KV59V4dHAwH2O2IO1z2lKmF8ufO1_j2] Tony Mercadal Director of Advancement Services Ransom Everglades School 3575 Main Highway Coconut Grove, FL 33133-5993 T: 305 460 2113 E: tmercadal@ransomeverglades.org<mailto:tmercadal@ransomeverglades.org> W: www.ransomeverglades.org<http://www.ransomeverglades.org>