You are correct on the lawn chair use value. $300 regardless of whether
they attend or not (unless they opt out initially).
And, yes, it would seem that the value of the parking is the value of being
a platinum member. Although I have seen similar cases where the
organization has used the highest public parking costs nearest the venue.
While a good base, I have counseled them to add a premium (20% for the sake
of conversation). After all, the IRS tells us to make a good faith
estimate - so for me, that's either the full platinum cost or some
reasonable estimate as suggested above.
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, Jul 1, 2019 at 5:28 PM Michael Wyland <
michael@sumptionandwyland.com>
wrote:
> 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)?
>
>
>
> [image: S&W_clr-small]
>
> 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*
>
>
>