You may have an issue and I strongly suggest a conversation with Counsel.
A number of years ago I had a situation where an arts organization offered a number of performances for a general admission price of $50. However, Orchestra seats were ”reserved” for donors who paid a minimum of $250. When I spoke to the IRS they insisted that the organization had therefore established a FMV of $250 for those seats. And that unless they organization could demonstrate that anyone who paid the general admission price had equal access to those same seats, $250 was the FMV.
Your situation sounds similar - although the circumstances are different. Close enough, though, that Counsel should review.
John
John Taylor
919.816.5903
johntaylorconsulting@gmail.com
Big ideas; small keyboard
> On May 30, 2019, at 8:15 PM, Angela Xulu Luna <
axulu@whittier.edu> wrote:
>
> I'm currently reviewing our Senior Class Gift packages to be sure we are in compliance with IRS requirements. I've looked everywhere and I am still a bit confused in regards to putting a value on reserved parking and seating for Commencement. Our packages starting at $250 or more include either reserved parking and/or seating for senior parents. We cannot put a value on it since it's parking and seats are free for everyone.
> However, you only have access to these reserved areas if you made a SCG, so would we still have to value it?
> Thank you!