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Scenario: an athletic program is doing a fundraiser for a trip to participate in a tournament abroad. We want to be sure to avoid issues with treating as charitable gifts, payments which come in that are not actually gifts, but payments made by parents (or other family members) who have a student going on the trip. I read through IRS Pub 526 but wasn't able to spot a clear answer. What we've said in the past is: - *If you’re making an ask to the parents of current students that will be going on the trip, the money is not a charitable donation until which point it exceeds the cost of the trip. So if the trip would be $2,000 and the parent gives $2,500 only the $500 is a charitable donation. Also no monies can be given to a particular person attending the trip to pay for their trip - this would not be considered a charitable donation.* Is this the correct response? If so, what if a trip is estimated to cost $2,000/student. Only one family makes a contribution to the campaign (non-student-specific). They give $2,000 which gets split across all 20 students participating. Now the trip costs $1,900 for everyone and the student pays $1,900 and her family gave $2,000. Thanks! Gwen -- *Gwen Donev* Director of Advancement Services Gustavus Adolphus College 800 West College Avenue Saint Peter, Minnesota 56082 Email: gwendonev@gustavus.edu Office: 507.933.6515

Yes, this is the correct response. And for your second scenario to work the funds would need to go into a general "XYZ Tournament Fund" and not only not directed to specific students but also not a specific trip. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Join me for 2-days of Advancement Services programming at the Midwest Meeting of the Minds conference this August! http://midwest-motm.org/ On Thu, Jul 25, 2019 at 1:18 PM Gwen Donev <gwendonev@gustavus.edu> wrote: > Scenario: an athletic program is doing a fundraiser for a trip to > participate in a tournament abroad. We want to be sure to avoid issues with > treating as charitable gifts, payments which come in that are not actually > gifts, but payments made by parents (or other family members) who have a > student going on the trip. I read through IRS Pub 526 but wasn't able to > spot a clear answer. > > > > What we've said in the past is: > > - *If you’re making an ask to the parents of current students that > will be going on the trip, the money is not a charitable donation until > which point it exceeds the cost of the trip. So if the trip would be > $2,000 and the parent gives $2,500 only the $500 is a charitable donation. > Also no monies can be given to a particular person attending the trip to > pay for their trip - this would not be considered a charitable donation.* > Is this the correct response? If so, what if a trip is estimated to cost > $2,000/student. Only one family makes a contribution to the campaign > (non-student-specific). They give $2,000 which gets split across all 20 > students participating. Now the trip costs $1,900 for everyone and the > student pays $1,900 and her family gave $2,000. > > Thanks! > Gwen > > -- > *Gwen Donev* > > Director of Advancement Services > > Gustavus Adolphus College > > 800 West College Avenue > > Saint Peter, Minnesota 56082 > > > > Email: gwendonev@gustavus.edu > > Office: 507.933.6515 >

Along these same lines, I need some coaching on the correct response to an athletic team that would like to send a solicitation to its supporters (including athletes' parents). The solicitation letter currently solicits the opportunity for supporters to target their giving with a list of options, like $100 for a Player Practice Gear Set, $30 for a Game Ball, $150 Hotel Room on Away Trip, etc., and the item's corresponding price. Obviously a game ball benefits the whole team, whereas a gear set or a hotel room could be seen as outfitting their particular student, even if they don't name their student on the check. Is there an IRS rule or guideline I can refer to, that lists what can be counted as a charitable donation, and where the distinction is drawn when it is potentially a benefit that can't be counted as a charitable donation, so that we can all feel more comfortable about these kinds of solicitations? Thanks! On Thu, Jul 25, 2019 at 12:31 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > Yes, this is the correct response. And for your second scenario to work > the funds would need to go into a general "XYZ Tournament Fund" and not > only not directed to specific students but also not a specific trip. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Join me for 2-days of Advancement Services programming at the > > Midwest Meeting of the Minds conference this August! > > http://midwest-motm.org/ > > > On Thu, Jul 25, 2019 at 1:18 PM Gwen Donev <gwendonev@gustavus.edu> wrote: > >> Scenario: an athletic program is doing a fundraiser for a trip to >> participate in a tournament abroad. We want to be sure to avoid issues with >> treating as charitable gifts, payments which come in that are not actually >> gifts, but payments made by parents (or other family members) who have a >> student going on the trip. I read through IRS Pub 526 but wasn't able to >> spot a clear answer. >> >> >> >> What we've said in the past is: >> >> - *If you’re making an ask to the parents of current students >> that will be going on the trip, the money is not a charitable donation >> until which point it exceeds the cost of the trip. So if the trip would be >> $2,000 and the parent gives $2,500 only the $500 is a charitable donation. >> Also no monies can be given to a particular person attending the trip to >> pay for their trip - this would not be considered a charitable donation.* >> Is this the correct response? If so, what if a trip is estimated to cost >> $2,000/student. Only one family makes a contribution to the campaign >> (non-student-specific). They give $2,000 which gets split across all 20 >> students participating. Now the trip costs $1,900 for everyone and the >> student pays $1,900 and her family gave $2,000. >> >> Thanks! >> Gwen >> >> -- >> *Gwen Donev* >> >> Director of Advancement Services >> >> Gustavus Adolphus College >> >> 800 West College Avenue >> >> Saint Peter, Minnesota 56082 >> >> >> >> Email: gwendonev@gustavus.edu >> >> Office: 507.933.6515 >> > -- *Gwen Donev* Director of Advancement Services Gustavus Adolphus College 800 West College Avenue Saint Peter, Minnesota 56082 Email: gwendonev@gustavus.edu Office: 507.933.6515

IRS Publication 526 is your authoritative source pertaining to what is - and is not a tax-deductible gift. In very broad terms, it must be given to or for the use of the nonprofit organization. Wherein a gift can benefit only a small group of people, there is no gift. What your athletics department must do, IMHO is not offering donors the ability to specify ANY of these items. Rather, they should be solicited for the general athletic fund - which supposedly benefits the entire college - and lists things that their gifts could support. In other words, show examples of how their gift *can* be used - rather than how it WILL be used. Goodness, going the route you mention would mean having to keep detailed track of money coming in and going out to prove to each donor that their gift did what you promised! 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, Aug 12, 2019 at 2:58 PM Gwen Donev <gwendonev@gustavus.edu> wrote: > Along these same lines, I need some coaching on the correct response to an > athletic team that would like to send a solicitation to its supporters > (including athletes' parents). The solicitation letter currently solicits > the opportunity for supporters to target their giving with a list of > options, like $100 for a Player Practice Gear Set, $30 for a Game Ball, > $150 Hotel Room on Away Trip, etc., and the item's corresponding price. > Obviously a game ball benefits the whole team, whereas a gear set or a > hotel room could be seen as outfitting their particular student, even if > they don't name their student on the check. Is there an IRS rule or > guideline I can refer to, that lists what can be counted as a charitable > donation, and where the distinction is drawn when it is potentially a > benefit that can't be counted as a charitable donation, so that we can all > feel more comfortable about these kinds of solicitations? > > Thanks! > > On Thu, Jul 25, 2019 at 12:31 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> Yes, this is the correct response. And for your second scenario to work >> the funds would need to go into a general "XYZ Tournament Fund" and not >> only not directed to specific students but also not a specific trip. >> >> John >> >> John H. Taylor >> Principal, John H. Taylor Consulting >> 2604 Sevier St. >> Durham, NC 27705 >> johntaylorconsulting@gmail.com >> 919.816.5903 (cell/text) >> >> Join me for 2-days of Advancement Services programming at the >> >> Midwest Meeting of the Minds conference this August! >> >> http://midwest-motm.org/ >> >> >> On Thu, Jul 25, 2019 at 1:18 PM Gwen Donev <gwendonev@gustavus.edu> >> wrote: >> >>> Scenario: an athletic program is doing a fundraiser for a trip to >>> participate in a tournament abroad. We want to be sure to avoid issues with >>> treating as charitable gifts, payments which come in that are not actually >>> gifts, but payments made by parents (or other family members) who have a >>> student going on the trip. I read through IRS Pub 526 but wasn't able to >>> spot a clear answer. >>> >>> >>> >>> What we've said in the past is: >>> >>> - *If you’re making an ask to the parents of current students >>> that will be going on the trip, the money is not a charitable donation >>> until which point it exceeds the cost of the trip. So if the trip would be >>> $2,000 and the parent gives $2,500 only the $500 is a charitable donation. >>> Also no monies can be given to a particular person attending the trip to >>> pay for their trip - this would not be considered a charitable donation.* >>> Is this the correct response? If so, what if a trip is estimated to >>> cost $2,000/student. Only one family makes a contribution to the >>> campaign (non-student-specific). They give $2,000 which gets split across >>> all 20 students participating. Now the trip costs $1,900 for everyone and >>> the student pays $1,900 and her family gave $2,000. >>> >>> Thanks! >>> Gwen >>> >>> -- >>> *Gwen Donev* >>> >>> Director of Advancement Services >>> >>> Gustavus Adolphus College >>> >>> 800 West College Avenue >>> >>> Saint Peter, Minnesota 56082 >>> >>> >>> >>> Email: gwendonev@gustavus.edu >>> >>> Office: 507.933.6515 >>> >> > > -- > *Gwen Donev* > > Director of Advancement Services > > Gustavus Adolphus College > > 800 West College Avenue > > Saint Peter, Minnesota 56082 > > > > Email: gwendonev@gustavus.edu > > Office: 507.933.6515 >

That's great advice. Do others of you (in higher ed) have a policy or practice on soliciting current parents, particularly for current parents of student-athletes? Do you allow the sports programs to send them solicitations? And if so, how do you avoid the potential appearance of private benefit that could arise? Thanks again! On Mon, Aug 12, 2019 at 3:10 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > IRS Publication 526 is your authoritative source pertaining to what is - > and is not a tax-deductible gift. In very broad terms, it must be given to > or for the use of the nonprofit organization. Wherein a gift can benefit > only a small group of people, there is no gift. > > What your athletics department must do, IMHO is not offering donors the > ability to specify ANY of these items. Rather, they should be solicited > for the general athletic fund - which supposedly benefits the entire > college - and lists things that their gifts could support. In other > words, show examples of how their gift *can* be used - rather than how it > WILL be used. > > Goodness, going the route you mention would mean having to keep detailed > track of money coming in and going out to prove to each donor that their > gift did what you promised! > > 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, Aug 12, 2019 at 2:58 PM Gwen Donev <gwendonev@gustavus.edu> wrote: > >> Along these same lines, I need some coaching on the correct response to >> an athletic team that would like to send a solicitation to its supporters >> (including athletes' parents). The solicitation letter currently solicits >> the opportunity for supporters to target their giving with a list of >> options, like $100 for a Player Practice Gear Set, $30 for a Game Ball, >> $150 Hotel Room on Away Trip, etc., and the item's corresponding price. >> Obviously a game ball benefits the whole team, whereas a gear set or a >> hotel room could be seen as outfitting their particular student, even if >> they don't name their student on the check. Is there an IRS rule or >> guideline I can refer to, that lists what can be counted as a charitable >> donation, and where the distinction is drawn when it is potentially a >> benefit that can't be counted as a charitable donation, so that we can all >> feel more comfortable about these kinds of solicitations? >> >> Thanks! >> >> On Thu, Jul 25, 2019 at 12:31 PM John Taylor < >> johntaylorconsulting@gmail.com> wrote: >> >>> Yes, this is the correct response. And for your second scenario to work >>> the funds would need to go into a general "XYZ Tournament Fund" and not >>> only not directed to specific students but also not a specific trip. >>> >>> John >>> >>> John H. Taylor >>> Principal, John H. Taylor Consulting >>> 2604 Sevier St. >>> Durham, NC 27705 >>> johntaylorconsulting@gmail.com >>> 919.816.5903 (cell/text) >>> >>> Join me for 2-days of Advancement Services programming at the >>> >>> Midwest Meeting of the Minds conference this August! >>> >>> http://midwest-motm.org/ >>> >>> >>> On Thu, Jul 25, 2019 at 1:18 PM Gwen Donev <gwendonev@gustavus.edu> >>> wrote: >>> >>>> Scenario: an athletic program is doing a fundraiser for a trip to >>>> participate in a tournament abroad. We want to be sure to avoid issues with >>>> treating as charitable gifts, payments which come in that are not actually >>>> gifts, but payments made by parents (or other family members) who have a >>>> student going on the trip. I read through IRS Pub 526 but wasn't able to >>>> spot a clear answer. >>>> >>>> >>>> >>>> What we've said in the past is: >>>> >>>> - *If you’re making an ask to the parents of current students >>>> that will be going on the trip, the money is not a charitable donation >>>> until which point it exceeds the cost of the trip. So if the trip would be >>>> $2,000 and the parent gives $2,500 only the $500 is a charitable donation. >>>> Also no monies can be given to a particular person attending the trip to >>>> pay for their trip - this would not be considered a charitable donation.* >>>> Is this the correct response? If so, what if a trip is estimated to >>>> cost $2,000/student. Only one family makes a contribution to the >>>> campaign (non-student-specific). They give $2,000 which gets split across >>>> all 20 students participating. Now the trip costs $1,900 for everyone and >>>> the student pays $1,900 and her family gave $2,000. >>>> >>>> Thanks! >>>> Gwen >>>> >>>> -- >>>> *Gwen Donev* >>>> >>>> Director of Advancement Services >>>> >>>> Gustavus Adolphus College >>>> >>>> 800 West College Avenue >>>> >>>> Saint Peter, Minnesota 56082 >>>> >>>> >>>> >>>> Email: gwendonev@gustavus.edu >>>> >>>> Office: 507.933.6515 >>>> >>> >> >> -- >> *Gwen Donev* >> >> Director of Advancement Services >> >> Gustavus Adolphus College >> >> 800 West College Avenue >> >> Saint Peter, Minnesota 56082 >> >> >> >> Email: gwendonev@gustavus.edu >> >> Office: 507.933.6515 >> > -- *Gwen Donev* Director of Advancement Services Gustavus Adolphus College 800 West College Avenue Saint Peter, Minnesota 56082 Email: gwendonev@gustavus.edu Office: 507.933.6515

The basic rule is that donations can't be directed to specific individuals, only to entire classes of individuals. Thus, there is no problem soliciting parents for contributions, so long as those contributions are for the team overall, not individual students. There are IRS publications regarding booster clubs, specifically, that may be worth studying, as the issues are substantially similar. (eg https://www.irs.gov/pub/irs-tege/eotopica93.pdf ) There's no problem with a solicitation letter that says a contribution of $x can help us pay for expenses such as: $50 = ball $200 - hotel room, etc. None of these are private benefits for particular students, they are all team expenses, even though a particular student may sleep in a given room. These lists are intended as examples, not gift restrictions. They help make a contribution feel more concrete, that's all. They don't improperly direct a gift towards a known individual, for their private benefit. Another important distinction between improper private inurement and proper donation is the issue of the class of beneficiaries. A small, known class is problematic - the Supreme Court basically says that if you know exactly who will benefit, it's not charity anymore. However, in the case of an athletic program, the beneficiaries are not only the student athletes, they are the university community as a whole, including fans, and even opposing teams. The contributions aren't supporting a specific person, they're supporting the charitable purpose of collegiate athletics more broadly. Thank you, Isaac Shalev CRM Expert Sage70, Inc. (917) 859-0151 isaac@sage70.com Schedule a *30-minute consultation *now: https://calendly.com/sage70/30min On Tue, Aug 13, 2019 at 5:26 PM Gwen Donev <gwendonev@gustavus.edu> wrote: > That's great advice. > > Do others of you (in higher ed) have a policy or practice on soliciting > current parents, particularly for current parents of student-athletes? Do > you allow the sports programs to send them solicitations? And if so, how do > you avoid the potential appearance of private benefit that could arise? > > Thanks again! > > On Mon, Aug 12, 2019 at 3:10 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> IRS Publication 526 is your authoritative source pertaining to what is - >> and is not a tax-deductible gift. In very broad terms, it must be given to >> or for the use of the nonprofit organization. Wherein a gift can benefit >> only a small group of people, there is no gift. >> >> What your athletics department must do, IMHO is not offering donors the >> ability to specify ANY of these items. Rather, they should be solicited >> for the general athletic fund - which supposedly benefits the entire >> college - and lists things that their gifts could support. In other >> words, show examples of how their gift *can* be used - rather than how >> it WILL be used. >> >> Goodness, going the route you mention would mean having to keep detailed >> track of money coming in and going out to prove to each donor that their >> gift did what you promised! >> >> 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, Aug 12, 2019 at 2:58 PM Gwen Donev <gwendonev@gustavus.edu> >> wrote: >> >>> Along these same lines, I need some coaching on the correct response to >>> an athletic team that would like to send a solicitation to its supporters >>> (including athletes' parents). The solicitation letter currently solicits >>> the opportunity for supporters to target their giving with a list of >>> options, like $100 for a Player Practice Gear Set, $30 for a Game Ball, >>> $150 Hotel Room on Away Trip, etc., and the item's corresponding price. >>> Obviously a game ball benefits the whole team, whereas a gear set or a >>> hotel room could be seen as outfitting their particular student, even if >>> they don't name their student on the check. Is there an IRS rule or >>> guideline I can refer to, that lists what can be counted as a charitable >>> donation, and where the distinction is drawn when it is potentially a >>> benefit that can't be counted as a charitable donation, so that we can all >>> feel more comfortable about these kinds of solicitations? >>> >>> Thanks! >>> >>> On Thu, Jul 25, 2019 at 12:31 PM John Taylor < >>> johntaylorconsulting@gmail.com> wrote: >>> >>>> Yes, this is the correct response. And for your second scenario to >>>> work the funds would need to go into a general "XYZ Tournament Fund" and >>>> not only not directed to specific students but also not a specific trip. >>>> >>>> John >>>> >>>> John H. Taylor >>>> Principal, John H. Taylor Consulting >>>> 2604 Sevier St. >>>> Durham, NC 27705 >>>> johntaylorconsulting@gmail.com >>>> 919.816.5903 (cell/text) >>>> >>>> Join me for 2-days of Advancement Services programming at the >>>> >>>> Midwest Meeting of the Minds conference this August! >>>> >>>> http://midwest-motm.org/ >>>> >>>> >>>> On Thu, Jul 25, 2019 at 1:18 PM Gwen Donev <gwendonev@gustavus.edu> >>>> wrote: >>>> >>>>> Scenario: an athletic program is doing a fundraiser for a trip to >>>>> participate in a tournament abroad. We want to be sure to avoid issues with >>>>> treating as charitable gifts, payments which come in that are not actually >>>>> gifts, but payments made by parents (or other family members) who have a >>>>> student going on the trip. I read through IRS Pub 526 but wasn't able to >>>>> spot a clear answer. >>>>> >>>>> >>>>> >>>>> What we've said in the past is: >>>>> >>>>> - *If you’re making an ask to the parents of current students >>>>> that will be going on the trip, the money is not a charitable donation >>>>> until which point it exceeds the cost of the trip. So if the trip would be >>>>> $2,000 and the parent gives $2,500 only the $500 is a charitable donation. >>>>> Also no monies can be given to a particular person attending the trip to >>>>> pay for their trip - this would not be considered a charitable donation.* >>>>> Is this the correct response? If so, what if a trip is estimated to >>>>> cost $2,000/student. Only one family makes a contribution to the >>>>> campaign (non-student-specific). They give $2,000 which gets split across >>>>> all 20 students participating. Now the trip costs $1,900 for everyone and >>>>> the student pays $1,900 and her family gave $2,000. >>>>> >>>>> Thanks! >>>>> Gwen >>>>> >>>>> -- >>>>> *Gwen Donev* >>>>> >>>>> Director of Advancement Services >>>>> >>>>> Gustavus Adolphus College >>>>> >>>>> 800 West College Avenue >>>>> >>>>> Saint Peter, Minnesota 56082 >>>>> >>>>> >>>>> >>>>> Email: gwendonev@gustavus.edu >>>>> >>>>> Office: 507.933.6515 >>>>> >>>> >>> >>> -- >>> *Gwen Donev* >>> >>> Director of Advancement Services >>> >>> Gustavus Adolphus College >>> >>> 800 West College Avenue >>> >>> Saint Peter, Minnesota 56082 >>> >>> >>> >>> Email: gwendonev@gustavus.edu >>> >>> Office: 507.933.6515 >>> >> > > -- > *Gwen Donev* > > Director of Advancement Services > > Gustavus Adolphus College > > 800 West College Avenue > > Saint Peter, Minnesota 56082 > > > > Email: gwendonev@gustavus.edu > > Office: 507.933.6515 >

Thanks so much for your response. I appreciate it! Gwen On Tue, Aug 13, 2019 at 5:10 PM Isaac Shalev <isaac@sage70.com> wrote: > The basic rule is that donations can't be directed to specific > individuals, only to entire classes of individuals. Thus, there is no > problem soliciting parents for contributions, so long as those > contributions are for the team overall, not individual students. There are > IRS publications regarding booster clubs, specifically, that may be worth > studying, as the issues are substantially similar. (eg > https://www.irs.gov/pub/irs-tege/eotopica93.pdf ) > > There's no problem with a solicitation letter that says a contribution of > $x can help us pay for expenses such as: $50 = ball $200 - hotel room, etc. > None of these are private benefits for particular students, they are all > team expenses, even though a particular student may sleep in a given room. > These lists are intended as examples, not gift restrictions. They help make > a contribution feel more concrete, that's all. They don't improperly direct > a gift towards a known individual, for their private benefit. > > Another important distinction between improper private inurement and > proper donation is the issue of the class of beneficiaries. A small, known > class is problematic - the Supreme Court basically says that if you know > exactly who will benefit, it's not charity anymore. However, in the case of > an athletic program, the beneficiaries are not only the student athletes, > they are the university community as a whole, including fans, and even > opposing teams. The contributions aren't supporting a specific person, > they're supporting the charitable purpose of collegiate athletics more > broadly. > > > Thank you, > Isaac Shalev > CRM Expert > Sage70, Inc. > (917) 859-0151 > isaac@sage70.com > > Schedule a *30-minute consultation *now: > https://calendly.com/sage70/30min > > > On Tue, Aug 13, 2019 at 5:26 PM Gwen Donev <gwendonev@gustavus.edu> wrote: > >> That's great advice. >> >> Do others of you (in higher ed) have a policy or practice on soliciting >> current parents, particularly for current parents of student-athletes? Do >> you allow the sports programs to send them solicitations? And if so, how do >> you avoid the potential appearance of private benefit that could arise? >> >> Thanks again! >> >> On Mon, Aug 12, 2019 at 3:10 PM John Taylor < >> johntaylorconsulting@gmail.com> wrote: >> >>> IRS Publication 526 is your authoritative source pertaining to what is - >>> and is not a tax-deductible gift. In very broad terms, it must be given to >>> or for the use of the nonprofit organization. Wherein a gift can benefit >>> only a small group of people, there is no gift. >>> >>> What your athletics department must do, IMHO is not offering donors the >>> ability to specify ANY of these items. Rather, they should be solicited >>> for the general athletic fund - which supposedly benefits the entire >>> college - and lists things that their gifts could support. In other >>> words, show examples of how their gift *can* be used - rather than how >>> it WILL be used. >>> >>> Goodness, going the route you mention would mean having to keep detailed >>> track of money coming in and going out to prove to each donor that their >>> gift did what you promised! >>> >>> 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, Aug 12, 2019 at 2:58 PM Gwen Donev <gwendonev@gustavus.edu> >>> wrote: >>> >>>> Along these same lines, I need some coaching on the correct response to >>>> an athletic team that would like to send a solicitation to its supporters >>>> (including athletes' parents). The solicitation letter currently solicits >>>> the opportunity for supporters to target their giving with a list of >>>> options, like $100 for a Player Practice Gear Set, $30 for a Game >>>> Ball, $150 Hotel Room on Away Trip, etc., and the item's corresponding >>>> price. Obviously a game ball benefits the whole team, whereas a gear set or >>>> a hotel room could be seen as outfitting their particular student, even if >>>> they don't name their student on the check. Is there an IRS rule or >>>> guideline I can refer to, that lists what can be counted as a charitable >>>> donation, and where the distinction is drawn when it is potentially a >>>> benefit that can't be counted as a charitable donation, so that we can all >>>> feel more comfortable about these kinds of solicitations? >>>> >>>> Thanks! >>>> >>>> On Thu, Jul 25, 2019 at 12:31 PM John Taylor < >>>> johntaylorconsulting@gmail.com> wrote: >>>> >>>>> Yes, this is the correct response. And for your second scenario to >>>>> work the funds would need to go into a general "XYZ Tournament Fund" and >>>>> not only not directed to specific students but also not a specific trip. >>>>> >>>>> John >>>>> >>>>> John H. Taylor >>>>> Principal, John H. Taylor Consulting >>>>> 2604 Sevier St. >>>>> Durham, NC 27705 >>>>> johntaylorconsulting@gmail.com >>>>> 919.816.5903 (cell/text) >>>>> >>>>> Join me for 2-days of Advancement Services programming at the >>>>> >>>>> Midwest Meeting of the Minds conference this August! >>>>> >>>>> http://midwest-motm.org/ >>>>> >>>>> >>>>> On Thu, Jul 25, 2019 at 1:18 PM Gwen Donev <gwendonev@gustavus.edu> >>>>> wrote: >>>>> >>>>>> Scenario: an athletic program is doing a fundraiser for a trip to >>>>>> participate in a tournament abroad. We want to be sure to avoid issues with >>>>>> treating as charitable gifts, payments which come in that are not actually >>>>>> gifts, but payments made by parents (or other family members) who have a >>>>>> student going on the trip. I read through IRS Pub 526 but wasn't able to >>>>>> spot a clear answer. >>>>>> >>>>>> >>>>>> >>>>>> What we've said in the past is: >>>>>> >>>>>> - *If you’re making an ask to the parents of current students >>>>>> that will be going on the trip, the money is not a charitable donation >>>>>> until which point it exceeds the cost of the trip. So if the trip would be >>>>>> $2,000 and the parent gives $2,500 only the $500 is a charitable donation. >>>>>> Also no monies can be given to a particular person attending the trip to >>>>>> pay for their trip - this would not be considered a charitable donation.* >>>>>> Is this the correct response? If so, what if a trip is estimated to >>>>>> cost $2,000/student. Only one family makes a contribution to the >>>>>> campaign (non-student-specific). They give $2,000 which gets split across >>>>>> all 20 students participating. Now the trip costs $1,900 for everyone and >>>>>> the student pays $1,900 and her family gave $2,000. >>>>>> >>>>>> Thanks! >>>>>> Gwen >>>>>> >>>>>> -- >>>>>> *Gwen Donev* >>>>>> >>>>>> Director of Advancement Services >>>>>> >>>>>> Gustavus Adolphus College >>>>>> >>>>>> 800 West College Avenue >>>>>> >>>>>> Saint Peter, Minnesota 56082 >>>>>> >>>>>> >>>>>> >>>>>> Email: gwendonev@gustavus.edu >>>>>> >>>>>> Office: 507.933.6515 >>>>>> >>>>> >>>> >>>> -- >>>> *Gwen Donev* >>>> >>>> Director of Advancement Services >>>> >>>> Gustavus Adolphus College >>>> >>>> 800 West College Avenue >>>> >>>> Saint Peter, Minnesota 56082 >>>> >>>> >>>> >>>> Email: gwendonev@gustavus.edu >>>> >>>> Office: 507.933.6515 >>>> >>> >> >> -- >> *Gwen Donev* >> >> Director of Advancement Services >> >> Gustavus Adolphus College >> >> 800 West College Avenue >> >> Saint Peter, Minnesota 56082 >> >> >> >> Email: gwendonev@gustavus.edu >> >> Office: 507.933.6515 >> > -- *Gwen Donev* Director of Advancement Services Gustavus Adolphus College 800 West College Avenue Saint Peter, Minnesota 56082 Email: gwendonev@gustavus.edu Office: 507.933.6515