This does not work for the IRS. It is called bifurcation. Please look in
the download site for the Council on Foundations document discussing the
limitations on gifts from Family (private) foundations.
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 8, 2019 at 1:36 PM Cecily Macy <
cecily.mandl@gmail.com> wrote:
> A donor who is hosting an event on behalf of the institution in their home
> recently proposed the following:
>
> They would like to give the institution one check which will cover the
> expenses of the event, and in turn, the institution will pay all of their
> vendors directly (catering, tent, valet, etc). This gift would come from
> their family foundation.
>
> The donors mentioned that since they will be in attendance, they will use
> a personal check to cover the expenses directly tied to their attendance
> (assuming they mean cost per individual for catering).
>
> For many reasons, this does not seem to comply with IRS regulations. Has
> anyone encountered a similar circumstance? How did you explain to the donor
> that this is not a possible option? Is there an option I am not thinking
> of? The donors shared that they have done this exact thing with other
> institutions, and that their tax advisor is comfortable with doing so.
>
> Thank you,
> Cecily
>
> VP of Development
> Pennsylvania Academy of the Fine Arts
>