FundSvcs Community

The first is for sure a gift assuming the funds can only be spent on institutional activities and do not provide personal benefit to the coach. In the second, all expended funds are gifts once expended. So only count those and not the entire lump sum. John Taylor 919.816.5903 johntaylorconsulting@gmail.com Big ideas; small keyboard > On Jun 12, 2019, at 9:50 AM, Robyn Smith <rsmith@randolphcollege.edu> wrote: > > Good morning everyone! > > Yesterday we received two checks, ostensibly as gifts, and I’m having doubts about whether or not they really can be considered gifts. If possible, I’d like some input from the great minds of the listserv. > > The first one is a gift from our men’s soccer coach to the men’s soccer fund. My concern with this gift is that the coach has discretion over the expenditures from this account, so it seems like it could be self-dealing. > > The second is a foundation grant for a revolving loan fund. My concern here is both language in the grant agreement that states if any of the money received is not used in accordance to the grant terms, it must be repaid, and that the funds cannot be used to influence elections. I’m wondering if these provisions leave the granting foundation with too much control of the grant for it to be considered at gift. > > Any thought on these two matters will be greatly appreciated. > > Robyn > > > > Robyn Smith ’87 > Director of Advancement Services and Prospect Management > Office of Institutional Advancement > Office: (434) 485-8048 > Fax: (434) 947-8157 > > <image001.jpg> >

Good morning everyone! Yesterday we received two checks, ostensibly as gifts, and I'm having doubts about whether or not they really can be considered gifts. If possible, I'd like some input from the great minds of the listserv. The first one is a gift from our men's soccer coach to the men's soccer fund. My concern with this gift is that the coach has discretion over the expenditures from this account, so it seems like it could be self-dealing. The second is a foundation grant for a revolving loan fund. My concern here is both language in the grant agreement that states if any of the money received is not used in accordance to the grant terms, it must be repaid, and that the funds cannot be used to influence elections. I'm wondering if these provisions leave the granting foundation with too much control of the grant for it to be considered at gift. Any thought on these two matters will be greatly appreciated. Robyn Robyn Smith '87 Director of Advancement Services and Prospect Management Office of Institutional Advancement Office: (434) 485-8048 Fax: (434) 947-8157 [Email_6]

Thanks so much, John! From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Taylor Sent: Wednesday, June 12, 2019 9:57 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Is it a gift? The first is for sure a gift assuming the funds can only be spent on institutional activities and do not provide personal benefit to the coach. In the second, all expended funds are gifts once expended. So only count those and not the entire lump sum. John Taylor 919.816.5903 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> Big ideas; small keyboard On Jun 12, 2019, at 9:50 AM, Robyn Smith <rsmith@randolphcollege.edu<mailto:rsmith@randolphcollege.edu>> wrote: Good morning everyone! Yesterday we received two checks, ostensibly as gifts, and I’m having doubts about whether or not they really can be considered gifts. If possible, I’d like some input from the great minds of the listserv. The first one is a gift from our men’s soccer coach to the men’s soccer fund. My concern with this gift is that the coach has discretion over the expenditures from this account, so it seems like it could be self-dealing. The second is a foundation grant for a revolving loan fund. My concern here is both language in the grant agreement that states if any of the money received is not used in accordance to the grant terms, it must be repaid, and that the funds cannot be used to influence elections. I’m wondering if these provisions leave the granting foundation with too much control of the grant for it to be considered at gift. Any thought on these two matters will be greatly appreciated. Robyn Robyn Smith ’87 Director of Advancement Services and Prospect Management Office of Institutional Advancement Office: (434) 485-8048 Fax: (434) 947-8157 <image001.jpg>

Booking and counting are two different things. Per CASE and its underlying premise, you can only count that which is irrevocably yours - which is in keeping with what the IRS states is tax-deductible (see Publication 526). If a donor reserves the right to pull everything (or anything) back, then it's not yours to keep or count. Unless you and the foundation can come to some agreement wherein none of the monies paid can be returned, then you do not have an unconditional/irrevocable 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 Tue, Jun 25, 2019 at 10:36 AM Robyn Smith <rsmith@randolphcollege.edu> wrote: > John, > > Our Business Office wants to book the entirety of the green revolving loan > grant in this FY, even though little to none of it will be used this FY > (which ends on Sunday). Can you point me in the direction of documentation > that would give credence to our booking only the amounts as they are > expended? > > Thanks again, > > Robyn > > > > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *Robyn Smith > *Sent:* Wednesday, June 12, 2019 10:20 AM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] Is it a gift? > > > > Thanks so much, John! > > > > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *John Taylor > *Sent:* Wednesday, June 12, 2019 9:57 AM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] Is it a gift? > > > > The first is for sure a gift assuming the funds can only be spent on > institutional activities and do not provide personal benefit to the coach. > > > > In the second, all expended funds are gifts once expended. So only count > those and not the entire lump sum. > > John Taylor > > 919.816.5903 > > johntaylorconsulting@gmail.com > > > > Big ideas; small keyboard > > > On Jun 12, 2019, at 9:50 AM, Robyn Smith <rsmith@randolphcollege.edu> > wrote: > > Good morning everyone! > > > > Yesterday we received two checks, ostensibly as gifts, and I’m having > doubts about whether or not they really can be considered gifts. If > possible, I’d like some input from the great minds of the listserv. > > > > The first one is a gift from our men’s soccer coach to the men’s soccer > fund. My concern with this gift is that the coach has discretion over the > expenditures from this account, so it seems like it could be self-dealing. > > > > The second is a foundation grant for a revolving loan fund. My concern > here is both language in the grant agreement that states if any of the > money received is not used in accordance to the grant terms, it must be > repaid, and that the funds cannot be used to influence elections. I’m > wondering if these provisions leave the granting foundation with too much > control of the grant for it to be considered at gift. > > > > Any thought on these two matters will be greatly appreciated. > > > > Robyn > > > > > > > > Robyn Smith ’87 > > Director of Advancement Services and Prospect Management > > Office of Institutional Advancement > > Office: (434) 485-8048 > > Fax: (434) 947-8157 > > > > <image001.jpg> > > > >

John, Our Business Office wants to book the entirety of the green revolving loan grant in this FY, even though little to none of it will be used this FY (which ends on Sunday). Can you point me in the direction of documentation that would give credence to our booking only the amounts as they are expended? Thanks again, Robyn From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Robyn Smith Sent: Wednesday, June 12, 2019 10:20 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Is it a gift? Thanks so much, John! From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of John Taylor Sent: Wednesday, June 12, 2019 9:57 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Is it a gift? The first is for sure a gift assuming the funds can only be spent on institutional activities and do not provide personal benefit to the coach. In the second, all expended funds are gifts once expended. So only count those and not the entire lump sum. John Taylor 919.816.5903 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> Big ideas; small keyboard On Jun 12, 2019, at 9:50 AM, Robyn Smith <rsmith@randolphcollege.edu<mailto:rsmith@randolphcollege.edu>> wrote: Good morning everyone! Yesterday we received two checks, ostensibly as gifts, and I’m having doubts about whether or not they really can be considered gifts. If possible, I’d like some input from the great minds of the listserv. The first one is a gift from our men’s soccer coach to the men’s soccer fund. My concern with this gift is that the coach has discretion over the expenditures from this account, so it seems like it could be self-dealing. The second is a foundation grant for a revolving loan fund. My concern here is both language in the grant agreement that states if any of the money received is not used in accordance to the grant terms, it must be repaid, and that the funds cannot be used to influence elections. I’m wondering if these provisions leave the granting foundation with too much control of the grant for it to be considered at gift. Any thought on these two matters will be greatly appreciated. Robyn Robyn Smith ’87 Director of Advancement Services and Prospect Management Office of Institutional Advancement Office: (434) 485-8048 Fax: (434) 947-8157 <image001.jpg>