Tell them no! But seriously, here is our procedure. Feel free to borrow whatever you like.
1.1. Gift Reversals and Error Refunds: Tax deductible donations to the University of Rochester are irrevocable conveyances which cannot be reversed or taken back by the donor.
* If a donor requests the reversal and return of a gift when no error has occurred, this is a donor relations issue. The associated gift officer should work with the donor to re-designate the gift to a different purpose. If the donor is unwilling to re-designate, the reversal must be approved by the Senior Vice President for University Advancement or designee of the Senior Vice President. Such reversals cannot be approved by Advancement Services staff. Refer to the guidance below for appropriate course of action.
1. If the gift and reversal occurred in the same calendar year, the donor must return the original tax receipt before the reversal can be processed. The gift is reversed on the system; a paper check is issued to the donor via accounts payable; and no 1099-MISC is issued. If the donor is unwilling or unable to return the original tax receipt, treat the reversal as having occurred in a subsequent calendar year.
2. If the reversal occurs in a subsequent calendar year and is less than $600, IRS regulations do not require us to issue a 1099-MISC. The gift is reversed on the system; a check is issued to the donor via accounts payable; and no 1099-MISC is issued.
3. If the reversal occurs in a subsequent calendar year and is $600 or more, IRS regulations require the issuance of a 1099-MISC. The donor must provide his/her social security number before the reversal can be processed. Please discourage donors or gift officers from transmitting social security numbers via email for donor security. The gift is reversed on the system; a check is issued to the donor via accounts payable; and a 1099-MISC must be issued. 1099-MISC issuance is the responsibility of University Finance Accounts Payable.
4. No gift reversal can be processed until at least two full weeks after the original deposit date (or until confirmation of bank clearance is received) in order to reasonably assure that funds have cleared our bank and the risk of fraud has been eliminated.
5. EFTs of gift reversals are not allowed. We can issue paper check reversals only.
6. For any gift reversal of $1,000 or greater, Advancement Services Prospect Research must undertake a research profile on the donor to assure name, address, business, background, and wealth screening. Any anomalies which may indicate fraud halt refund process and must be reported to leadership for review.
7. Gift reversals of any amount require approval of the Senior Vice President or designee of the Senior Vice President.
8. Only after all the above reviews and steps have taken place should the refund request be submitted to accounts payable.
* When infrequent errors occur and no tax deductible receipt has been issued Advancement Services will full or partial refund the donor via the following protocols.
9. Credit Card Full or Partial Refunds
a. If a donor has executed an erroneous or duplicate credit card charge, we will refund the donor via the original credit card only. It is fraud to refund a different credit card number than the one on which a charge has taken place. If a donor requests that a different credit card be refunded for any reason, immediately alert leadership and follow the procedures from University Credit Card Policy for a security breach; the credit card has likely been compromised.
b. No credit card refund can be processed until proof of settlement to University of Rochester bank account has been received from merchant services.
c. Any credit card full or partial refund of $1,000 or more must be approved by the Senior Vice President of Advancement or designee of the Senior Vice President.
10. Non-Credit Card Full or Partial Refunds
a. If a donor has erroneously overpaid or sent duplicate payment via any other tender (paper check, wire, stock, etc.), we will refund the donor via paper check only issued from accounts payable.
b. EFTs of gift refunds are not allowed.
c. No such refund can be processed until at least two full weeks after the original deposit date (or until confirmation of clearance is received) in order to reasonably assure that funds have cleared our bank and the risk of fraud has been eliminated.
d. For any refund of $1,000 or greater, Advancement Services Prospect Research must undertake a research profile on the donor to assure name, address, business, background, and wealth screening. Any anomalies which may indicate fraud halt refund process and must be reported to leadership for review.
e. Any full or partial refund of $1,000 or greater must be approved by the Senior Vice President of Advancement or designee of the Senior Vice President.
f. Only after all the above steps and reviews have taken place should the refund request be submitted to accounts payable.
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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From: Advancement Services Discussion List <
FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Halverson, Michael
Sent: Thursday, May 23, 2019 3:02 PM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
Subject: [FUNDSVCS] Refunding donation in a different tax year?
Hello, all -
We have a situation in which a donor made a gift in tax year 2018, received a receipt at the time of the gift, and now is requesting a refund in 2019.
If we issue a refund, does it necessitate we issue a 1099 for gifts of ANY amount? Or is there a dollar threshold associated with the need to issue a 1099?
Many thanks!
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<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.luc.edu_advancement&d=DwMFAg&c=kbmfwr1Yojg42sGEpaQh5ofMHBeTl9EI2eaqQZhHbOU&r=MraOYpMOnCsIdm9axhPA4iXJhhPExcCA4gBqoRhHvTU&m=QlDzffiTdiUGuUFQJyRkNNxm9OaWue5V8PFH2oyRsY8&s=z8gNqvplQGeRg03pwRE-M6J_Cxaz8YdXsYkVoQqqbUU&e=>