To all:
A charity offering outdoor entertainment offers a "Platinum" annual fund donation level of $1,000. For this gift, the donor receives all the benefits of "friend" and "gold" status, plus other benefits. I'm concerned that the benefits outvalue the amount of the donation, making the gift a purchase.
Platinum benefits include two complimentary lawn chair rentals per performance. There are 30 performances per season and lawn chairs rent for $5 each per performance. So, value equals $300, right?
The tougher part of platinum benefits is free preferred parking for each of the 30 events. During event times, the preferred parking lots are only accessible to: 1) platinum donors; and 2) cars displaying disabled parking permits (disabled parking permit holders park free without being platinum donors). The preferred parking lots are contracted by the charity and owned by local government or by businesses. There is no option for the public to pay a fee and park in the preferred lots when attending performances.
Has the charity set the value of the preferred parking at the amount of the residual gift (gift amount of $1,000 minus FMV of the other benefits received)?
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Michael L. Wyland
Sumption & Wyland
818 South Hawthorne Avenue
Sioux Falls, South Dakota 57104-4537
(605) 336-0244 or (888) 4-SUMPTION
Web site:
http://www.sumptionandwyland.com
LinkedIn Profile:
http://www.linkedin.com/in/michaelwyland
"I never considered a difference of opinion in politics, in religion, in philosophy, as cause for withdrawing from a friend." - Thomas Jefferson to William Hamilton, April 22, 1800