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Hi all, We have an alumnus who has been raising this issue with various staff members over the years (and even the President and some Deans/faculty...). He took it upon himself to make 100 fountain pens by hand to raise money for a restoration project. They sold for $400 each and were valued, he says, by the IRS at $200 each. So anyone who purchased one was receipted with a tax deductible amount of $200 by the university. At the time this all happened, our department told him it would not recognize a value for his "donation" of the pens to be sold. He was told it was a gift of "time", while *his* accountant told him he was owed acknowledgement for a $20,000 in-kind donation. He claimed this with the IRS the year of the sale on his own and evidently had no issue, but he's most upset about not being recognized at a certain lifetime giving society level based on the value of his donation. How are your in-kind donors being recognized, if at all, if we're not providing them with a stated value? Interested to hear thoughts from those more well-versed with GIKs and the IRS. Thanks in advance, *Lauren Seebold* Director of Annual Giving Lawrence Technological University 21000 W. Ten Mile Road Southfield, MI 48075 Ph: 248.204.2309 *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* *]*

I’m a little baffled. He gave you 100 pens which he valued at $200 each. Why wouldn’t you call that a $20,000 gift; assuming the value can be substantiated? Everything is made with someone’s time.—Bill From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Lauren Seebold Sent: Thursday, August 22, 2019 5:12 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Gift in kind recognition [EXTERNAL EMAIL] WARNING: This email originated from outside of SCAD. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hi all, We have an alumnus who has been raising this issue with various staff members over the years (and even the President and some Deans/faculty...). He took it upon himself to make 100 fountain pens by hand to raise money for a restoration project. They sold for $400 each and were valued, he says, by the IRS at $200 each. So anyone who purchased one was receipted with a tax deductible amount of $200 by the university. At the time this all happened, our department told him it would not recognize a value for his "donation" of the pens to be sold. He was told it was a gift of "time", while his accountant told him he was owed acknowledgement for a $20,000 in-kind donation. He claimed this with the IRS the year of the sale on his own and evidently had no issue, but he's most upset about not being recognized at a certain lifetime giving society level based on the value of his donation. How are your in-kind donors being recognized, if at all, if we're not providing them with a stated value? Interested to hear thoughts from those more well-versed with GIKs and the IRS. Thanks in advance, Lauren Seebold Director of Annual Giving Lawrence Technological University 21000 W. Ten Mile Road Southfield, MI 48075 Ph: 248.204.2309 [ Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU ]

First off, those who purchased the pens should not have been given a receipt for any tax-deductible amount. The pens were worth $200 and they paid $200 and so there was no net gift! As for the donor who made the pens and donated them to you, if you have a standard policy of recognizing in-kind donors for their donations then this donor would deserve that recognition. If, however, Lawrence Tech has a policy that states in-kind donations are not added to recognition totals, then simply show the donor that policy. While receipts for in-kind donations should not reflect a value, that does not mean the donor cannot be recognized for their donation. It is the legal tax receipt that is the only issue. Adding a corresponding amount to lifetime giving totals is a fairly common practice. John John H. Taylor Principal John H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu> wrote: > Hi all, > > We have an alumnus who has been raising this issue with various staff > members over the years (and even the President and some Deans/faculty...). > > He took it upon himself to make 100 fountain pens by hand to raise money > for a restoration project. They sold for $400 each and were valued, he > says, by the IRS at $200 each. So anyone who purchased one was receipted > with a tax deductible amount of $200 by the university. > > At the time this all happened, our department told him it would not > recognize a value for his "donation" of the pens to be sold. He was told it > was a gift of "time", while *his* accountant told him he was owed > acknowledgement for a $20,000 in-kind donation. > > He claimed this with the IRS the year of the sale on his own and evidently > had no issue, but he's most upset about not being recognized at a certain > lifetime giving society level based on the value of his donation. How are > your in-kind donors being recognized, if at all, if we're not providing > them with a stated value? > > Interested to hear thoughts from those more well-versed with GIKs and the > IRS. > > Thanks in advance, > > *Lauren Seebold* > Director of Annual Giving > Lawrence Technological University > 21000 W. Ten Mile Road > Southfield, MI 48075 > Ph: 248.204.2309 > > *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* *]* > >

John - pens were sold for $400 but the FMV was $200. This saga predates my time at LTU but it's still an issue the alum brings up. And it appears - shockingly - that we didn't even have a formal GIK policy up until very recently. However, we have historically recognized other GIK donors at cumulative giving levels based on the amount entered into our database. On Thu, Aug 22, 2019 at 5:17 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > First off, those who purchased the pens should not have been given a > receipt for any tax-deductible amount. The pens were worth $200 and they > paid $200 and so there was no net gift! > > As for the donor who made the pens and donated them to you, if you have a > standard policy of recognizing in-kind donors for their donations then this > donor would deserve that recognition. If, however, Lawrence Tech has a > policy that states in-kind donations are not added to recognition totals, > then simply show the donor that policy. > > While receipts for in-kind donations should not reflect a value, that does > not mean the donor cannot be recognized for their donation. It is the > legal tax receipt that is the only issue. Adding a corresponding amount to > lifetime giving totals is a fairly common practice. > > John > > John H. Taylor > Principal > John H. Taylor Consulting, LLC > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu> wrote: > >> Hi all, >> >> We have an alumnus who has been raising this issue with various staff >> members over the years (and even the President and some Deans/faculty...). >> >> He took it upon himself to make 100 fountain pens by hand to raise money >> for a restoration project. They sold for $400 each and were valued, he >> says, by the IRS at $200 each. So anyone who purchased one was receipted >> with a tax deductible amount of $200 by the university. >> >> At the time this all happened, our department told him it would not >> recognize a value for his "donation" of the pens to be sold. He was told it >> was a gift of "time", while *his* accountant told him he was owed >> acknowledgement for a $20,000 in-kind donation. >> >> He claimed this with the IRS the year of the sale on his own and >> evidently had no issue, but he's most upset about not being recognized at a >> certain lifetime giving society level based on the value of his donation. >> How are your in-kind donors being recognized, if at all, if we're not >> providing them with a stated value? >> >> Interested to hear thoughts from those more well-versed with GIKs and the >> IRS. >> >> Thanks in advance, >> >> *Lauren Seebold* >> Director of Annual Giving >> Lawrence Technological University >> 21000 W. Ten Mile Road >> Southfield, MI 48075 >> Ph: 248.204.2309 >> >> *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* *]* >> >> -- *Lauren Seebold* Director of Annual Giving Lawrence Technological University 21000 W. Ten Mile Road Southfield, MI 48075 Ph: 248.204.2309 *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* *]*

They paid $400 for the pens, John.—Bill From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Taylor First off, those who purchased the pens should not have been given a receipt for any tax-deductible amount. The pens were worth $200 and they paid $200 and so there was no net gift! As for the donor who made the pens and donated them to you, if you have a standard policy of recognizing in-kind donors for their donations then this donor would deserve that recognition. If, however, Lawrence Tech has a policy that states in-kind donations are not added to recognition totals, then simply show the donor that policy. While receipts for in-kind donations should not reflect a value, that does not mean the donor cannot be recognized for their donation. It is the legal tax receipt that is the only issue. Adding a corresponding amount to lifetime giving totals is a fairly common practice. John John H. Taylor Principal John H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com <mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu <mailto:lseebold@ltu.edu> > wrote: Hi all, We have an alumnus who has been raising this issue with various staff members over the years (and even the President and some Deans/faculty...). He took it upon himself to make 100 fountain pens by hand to raise money for a restoration project. They sold for $400 each and were valued, he says, by the IRS at $200 each. So anyone who purchased one was receipted with a tax deductible amount of $200 by the university. At the time this all happened, our department told him it would not recognize a value for his "donation" of the pens to be sold. He was told it was a gift of "time", while his accountant told him he was owed acknowledgement for a $20,000 in-kind donation. He claimed this with the IRS the year of the sale on his own and evidently had no issue, but he's most upset about not being recognized at a certain lifetime giving society level based on the value of his donation. How are your in-kind donors being recognized, if at all, if we're not providing them with a stated value? Interested to hear thoughts from those more well-versed with GIKs and the IRS. Thanks in advance, Lauren Seebold Director of Annual Giving Lawrence Technological University 21000 W. Ten Mile Road Southfield, MI 48075 Ph: 248.204.2309 [ Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU ]

It seems to me, then, that he has a pretty good argument for being included in your lifetime giving society at a level that reflects his $20,000 GIK.—Bill From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John - pens were sold for $400 but the FMV was $200. This saga predates my time at LTU but it's still an issue the alum brings up. And it appears - shockingly - that we didn't even have a formal GIK policy up until very recently. However, we have historically recognized other GIK donors at cumulative giving levels based on the amount entered into our database.

Ah - I get it - the net gift was $200! John H. Taylor Principal John H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Aug 22, 2019 at 5:21 PM Lauren Seebold <lseebold@ltu.edu> wrote: > John - pens were sold for $400 but the FMV was $200. This saga predates my > time at LTU but it's still an issue the alum brings up. And it appears - > shockingly - that we didn't even have a formal GIK policy up until very > recently. However, we have historically recognized other GIK donors at > cumulative giving levels based on the amount entered into our database. > > On Thu, Aug 22, 2019 at 5:17 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> First off, those who purchased the pens should not have been given a >> receipt for any tax-deductible amount. The pens were worth $200 and they >> paid $200 and so there was no net gift! >> >> As for the donor who made the pens and donated them to you, if you have a >> standard policy of recognizing in-kind donors for their donations then this >> donor would deserve that recognition. If, however, Lawrence Tech has a >> policy that states in-kind donations are not added to recognition totals, >> then simply show the donor that policy. >> >> While receipts for in-kind donations should not reflect a value, that >> does not mean the donor cannot be recognized for their donation. It is the >> legal tax receipt that is the only issue. Adding a corresponding amount to >> lifetime giving totals is a fairly common practice. >> >> John >> >> John H. Taylor >> Principal >> John H. Taylor Consulting, LLC >> 2604 Sevier St. >> Durham, NC 27705 >> johntaylorconsulting@gmail.com >> 919.816.5903 (cell/text) >> >> Serving the Advancement Community Since 1987 >> >> >> On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu> wrote: >> >>> Hi all, >>> >>> We have an alumnus who has been raising this issue with various staff >>> members over the years (and even the President and some Deans/faculty...). >>> >>> He took it upon himself to make 100 fountain pens by hand to raise money >>> for a restoration project. They sold for $400 each and were valued, he >>> says, by the IRS at $200 each. So anyone who purchased one was receipted >>> with a tax deductible amount of $200 by the university. >>> >>> At the time this all happened, our department told him it would not >>> recognize a value for his "donation" of the pens to be sold. He was told it >>> was a gift of "time", while *his* accountant told him he was owed >>> acknowledgement for a $20,000 in-kind donation. >>> >>> He claimed this with the IRS the year of the sale on his own and >>> evidently had no issue, but he's most upset about not being recognized at a >>> certain lifetime giving society level based on the value of his donation. >>> How are your in-kind donors being recognized, if at all, if we're not >>> providing them with a stated value? >>> >>> Interested to hear thoughts from those more well-versed with GIKs and >>> the IRS. >>> >>> Thanks in advance, >>> >>> *Lauren Seebold* >>> Director of Annual Giving >>> Lawrence Technological University >>> 21000 W. Ten Mile Road >>> Southfield, MI 48075 >>> Ph: 248.204.2309 >>> >>> *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* >>> *]* >>> >>> > > -- > *Lauren Seebold* > Director of Annual Giving > Lawrence Technological University > 21000 W. Ten Mile Road > Southfield, MI 48075 > Ph: 248.204.2309 > > *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* *]* > >

The rules for in-kind gifts of goods are clear: you do not provide a receipt for the value of the gift, you only provide a description. I've seen orgs use language that says something like 'Your contribution, which saved the org an estimated amount of $______, is greatly appreciated.' It's not my favorite approach, but I've seen it used. The point is that there is no bar on sharing with the donor your valuation for the gift - a valuation you're legally required to make. What you're not supposed to do is receipt the donor for a contribution of that amount. It is certainly not the case that the donor should be receipted for a gift of time. He gave pens. Whether he bought them or made them is inconsequential from an IRS perspective. There is a difference between in-kind gifts of time and in-kind gifts of property. This was clearly a gift of personal property, not time. As to your recognition society, that's really a matter of stewardship and policy, and ideally, should be addressed in your gift acceptance policy, and if not there, then certainly in the gift agreement accompanying the gift. It seems to me that the donor should be recognized, but you may see it another way. 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 Thu, Aug 22, 2019 at 5:17 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > First off, those who purchased the pens should not have been given a > receipt for any tax-deductible amount. The pens were worth $200 and they > paid $200 and so there was no net gift! > > As for the donor who made the pens and donated them to you, if you have a > standard policy of recognizing in-kind donors for their donations then this > donor would deserve that recognition. If, however, Lawrence Tech has a > policy that states in-kind donations are not added to recognition totals, > then simply show the donor that policy. > > While receipts for in-kind donations should not reflect a value, that does > not mean the donor cannot be recognized for their donation. It is the > legal tax receipt that is the only issue. Adding a corresponding amount to > lifetime giving totals is a fairly common practice. > > John > > John H. Taylor > Principal > John H. Taylor Consulting, LLC > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu> wrote: > >> Hi all, >> >> We have an alumnus who has been raising this issue with various staff >> members over the years (and even the President and some Deans/faculty...). >> >> He took it upon himself to make 100 fountain pens by hand to raise money >> for a restoration project. They sold for $400 each and were valued, he >> says, by the IRS at $200 each. So anyone who purchased one was receipted >> with a tax deductible amount of $200 by the university. >> >> At the time this all happened, our department told him it would not >> recognize a value for his "donation" of the pens to be sold. He was told it >> was a gift of "time", while *his* accountant told him he was owed >> acknowledgement for a $20,000 in-kind donation. >> >> He claimed this with the IRS the year of the sale on his own and >> evidently had no issue, but he's most upset about not being recognized at a >> certain lifetime giving society level based on the value of his donation. >> How are your in-kind donors being recognized, if at all, if we're not >> providing them with a stated value? >> >> Interested to hear thoughts from those more well-versed with GIKs and the >> IRS. >> >> Thanks in advance, >> >> *Lauren Seebold* >> Director of Annual Giving >> Lawrence Technological University >> 21000 W. Ten Mile Road >> Southfield, MI 48075 >> Ph: 248.204.2309 >> >> *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* *]* >> >>

Thanks for the feedback, all. This is the first time I've been pulled into this particular issue and I am in agreement that he deserves the proper lifetime recognition. Our new VP has been brought up to speed and is equally perplexed why he was denied this recognition...Onward and upward! On Thu, Aug 22, 2019 at 5:29 PM Isaac Shalev <isaac@sage70.com> wrote: > The rules for in-kind gifts of goods are clear: you do not provide a > receipt for the value of the gift, you only provide a description. I've > seen orgs use language that says something like 'Your contribution, which > saved the org an estimated amount of $______, is greatly appreciated.' It's > not my favorite approach, but I've seen it used. The point is that there is > no bar on sharing with the donor your valuation for the gift - a valuation > you're legally required to make. What you're not supposed to do is receipt > the donor for a contribution of that amount. > > It is certainly not the case that the donor should be receipted for a gift > of time. He gave pens. Whether he bought them or made them is > inconsequential from an IRS perspective. There is a difference between > in-kind gifts of time and in-kind gifts of property. This was clearly a > gift of personal property, not time. > > As to your recognition society, that's really a matter of stewardship and > policy, and ideally, should be addressed in your gift acceptance policy, > and if not there, then certainly in the gift agreement accompanying the > gift. It seems to me that the donor should be recognized, but you may see > it another way. > > > 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 Thu, Aug 22, 2019 at 5:17 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> First off, those who purchased the pens should not have been given a >> receipt for any tax-deductible amount. The pens were worth $200 and they >> paid $200 and so there was no net gift! >> >> As for the donor who made the pens and donated them to you, if you have a >> standard policy of recognizing in-kind donors for their donations then this >> donor would deserve that recognition. If, however, Lawrence Tech has a >> policy that states in-kind donations are not added to recognition totals, >> then simply show the donor that policy. >> >> While receipts for in-kind donations should not reflect a value, that >> does not mean the donor cannot be recognized for their donation. It is the >> legal tax receipt that is the only issue. Adding a corresponding amount to >> lifetime giving totals is a fairly common practice. >> >> John >> >> John H. Taylor >> Principal >> John H. Taylor Consulting, LLC >> 2604 Sevier St. >> Durham, NC 27705 >> johntaylorconsulting@gmail.com >> 919.816.5903 (cell/text) >> >> Serving the Advancement Community Since 1987 >> >> >> On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu> wrote: >> >>> Hi all, >>> >>> We have an alumnus who has been raising this issue with various staff >>> members over the years (and even the President and some Deans/faculty...). >>> >>> He took it upon himself to make 100 fountain pens by hand to raise money >>> for a restoration project. They sold for $400 each and were valued, he >>> says, by the IRS at $200 each. So anyone who purchased one was receipted >>> with a tax deductible amount of $200 by the university. >>> >>> At the time this all happened, our department told him it would not >>> recognize a value for his "donation" of the pens to be sold. He was told it >>> was a gift of "time", while *his* accountant told him he was owed >>> acknowledgement for a $20,000 in-kind donation. >>> >>> He claimed this with the IRS the year of the sale on his own and >>> evidently had no issue, but he's most upset about not being recognized at a >>> certain lifetime giving society level based on the value of his donation. >>> How are your in-kind donors being recognized, if at all, if we're not >>> providing them with a stated value? >>> >>> Interested to hear thoughts from those more well-versed with GIKs and >>> the IRS. >>> >>> Thanks in advance, >>> >>> *Lauren Seebold* >>> Director of Annual Giving >>> Lawrence Technological University >>> 21000 W. Ten Mile Road >>> Southfield, MI 48075 >>> Ph: 248.204.2309 >>> >>> *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* >>> *]* >>> >>> -- *Lauren Seebold* Director of Annual Giving Lawrence Technological University 21000 W. Ten Mile Road Southfield, MI 48075 Ph: 248.204.2309 *[ **Make a Gift <https://www.ltu.edu/giving/online-gift.asp> to LTU* *]*

Certainly the donor contributed property, the pens, so you would issue a descriptive receipt, as Isaac says, with a description that indicated the nature and quality of the pens (fountain pens hand-crafted by … etc.). You should not provide a value, per the IRS written acknowledgment standard, and certainly in no way suggest in any way the amount that the donor might be able to take as a deduction. And I agree that, subject to your institutional policies, it might be appropriate to recognize the donor internally based on the value of the pens. All that having been said, it’s not *quite* the case that “whether he bought them or made them is inconsequential from an IRS perspective.” It seems to me that the IRS would, if they examined his return, regard the pens as “ordinary income property” (if he had made the pens and sold them rather than donated them, the IRS would have treated the income from their sale as ordinary income), so the donor would only be able to deduct his basis in the pens, or roughly his cost of the materials used to create them. It’s similar to an artist selling artwork that she created. All of which makes it all the more important to stick to a descriptive receipt, and certainly not issue an “acknowledgement for a $20,000 in-kind donation.” (If the donor had bought the pens, which are considered tangible personal property, and donated them, since the pens were not used for the charitable purpose of the organization but used as a premium—or as an auction item, or sold—the donor would still only be able to deduct no more than his basis in the pens, but in that case his basis would likely be closer to the fair market value of the pens, especially if he had bought them at their full retail value!) Lots of things to keep in mind! My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 •: 202-633-8754 | •: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Isaac Shalev Sent: Thursday, August 22, 2019 5:29 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Gift in kind recognition The rules for in-kind gifts of goods are clear: you do not provide a receipt for the value of the gift, you only provide a description. I've seen orgs use language that says something like 'Your contribution, which saved the org an estimated amount of $______, is greatly appreciated.' It's not my favorite approach, but I've seen it used. The point is that there is no bar on sharing with the donor your valuation for the gift - a valuation you're legally required to make. What you're not supposed to do is receipt the donor for a contribution of that amount. It is certainly not the case that the donor should be receipted for a gift of time. He gave pens. Whether he bought them or made them is inconsequential from an IRS perspective. There is a difference between in-kind gifts of time and in-kind gifts of property. This was clearly a gift of personal property, not time. As to your recognition society, that's really a matter of stewardship and policy, and ideally, should be addressed in your gift acceptance policy, and if not there, then certainly in the gift agreement accompanying the gift. It seems to me that the donor should be recognized, but you may see it another way. Thank you, Isaac Shalev CRM Expert Sage70, Inc. (917) 859-0151 isaac@sage70.com<mailto:isaac@sage70.com> Schedule a 30-minute consultation now: https://calendly.com/sage70/30min<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcalendly.com%2Fsage70%2F30min&data=02%7C01%7CHejnalA%40SI.EDU%7C829a97c185d74d9d462008d72747c149%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637021061452628065&sdata=qGzXyvXPnYUIKUZrAi5fJ2kyXeKrQR2fpus0YsthLuE%3D&reserved=0> On Thu, Aug 22, 2019 at 5:17 PM John Taylor <johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com>> wrote: First off, those who purchased the pens should not have been given a receipt for any tax-deductible amount. The pens were worth $200 and they paid $200 and so there was no net gift! As for the donor who made the pens and donated them to you, if you have a standard policy of recognizing in-kind donors for their donations then this donor would deserve that recognition. If, however, Lawrence Tech has a policy that states in-kind donations are not added to recognition totals, then simply show the donor that policy. While receipts for in-kind donations should not reflect a value, that does not mean the donor cannot be recognized for their donation. It is the legal tax receipt that is the only issue. Adding a corresponding amount to lifetime giving totals is a fairly common practice. John John H. Taylor Principal John H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu<mailto:lseebold@ltu.edu>> wrote: Hi all, We have an alumnus who has been raising this issue with various staff members over the years (and even the President and some Deans/faculty...). He took it upon himself to make 100 fountain pens by hand to raise money for a restoration project. They sold for $400 each and were valued, he says, by the IRS at $200 each. So anyone who purchased one was receipted with a tax deductible amount of $200 by the university. At the time this all happened, our department told him it would not recognize a value for his "donation" of the pens to be sold. He was told it was a gift of "time", while his accountant told him he was owed acknowledgement for a $20,000 in-kind donation. He claimed this with the IRS the year of the sale on his own and evidently had no issue, but he's most upset about not being recognized at a certain lifetime giving society level based on the value of his donation. How are your in-kind donors being recognized, if at all, if we're not providing them with a stated value? Interested to hear thoughts from those more well-versed with GIKs and the IRS. Thanks in advance, Lauren Seebold Director of Annual Giving Lawrence Technological University 21000 W. Ten Mile Road Southfield, MI 48075 Ph: 248.204.2309 [ Make a Gift<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ltu.edu%2Fgiving%2Fonline-gift.asp&data=02%7C01%7CHejnalA%40SI.EDU%7C829a97c185d74d9d462008d72747c149%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637021061452628065&sdata=SJfKnwOlRcbO9Ku3z%2FYRxi4Xm4ccRTwMEXlXIdZZsac%3D&reserved=0> to LTU ]

Thanks for the clarification, Alan, you are absolutely right about the IRS's approach to the donor's tax return. I meant that from the nonprofit's perspective, there is no distinction in how the donor comes to possess the item donated. What the donor does on their return is rightly between them and the IRS and goes by its own set of rules. 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 Thu, Aug 22, 2019 at 7:57 PM Hejnal, Alan < 00000031f8bb5829-dmarc-request@listserv.fundsvcs.org> wrote: > Certainly the donor contributed property, the pens, so you would issue a > descriptive receipt, as Isaac says, with a description that indicated the > nature and quality of the pens (fountain pens hand-crafted by … etc.). You > should not provide a value, per the IRS written acknowledgment standard, > and certainly in no way suggest in any way the amount that the donor might > be able to take as a deduction. > > > > And I agree that, subject to your institutional policies, it might be > appropriate to recognize the donor internally based on the value of the > pens. > > > > All that having been said, it’s not **quite** the case that “whether he > bought them or made them is inconsequential from an IRS perspective.” It > seems to me that the IRS would, if they examined his return, regard the > pens as “ordinary income property” (if he had made the pens and sold them > rather than donated them, the IRS would have treated the income from their > sale as ordinary income), so the donor would only be able to deduct his > basis in the pens, or roughly his cost of the materials used to create > them. It’s similar to an artist selling artwork that she created. All of > which makes it all the more important to stick to a descriptive receipt, > and certainly not issue an “acknowledgement for a $20,000 in-kind donation.” > > > > (If the donor had *bought* the pens, which are considered tangible > personal property, and donated them, since the pens were not used for the > charitable purpose of the organization but used as a premium—or as an > auction item, or sold—the donor would still only be able to deduct no more > than his basis in the pens, but in that case his basis would likely be > closer to the fair market value of the pens, especially if he had bought > them at their full retail value!) > > > > Lots of things to keep in mind! > > > > My US$0.02 worth; the usual disclaimers apply. > > > > Good luck! > > > > *Alan* > > > > *Alan S. Hejnal * > > Data Quality Manager > > Smithsonian Institution - Office of Advancement > > 600 Maryland Avenue SW, Suite 600E > > P.O. Box 37012, MRC 527 > > Washington, DC 20013-7012 > > (: 202-633-8754 | *: HejnalA@si.edu > > > [image: SNAGHTML5cbfa34] <https://www.si.edu/> > [image: AASP_FundSvcs_LOGO-01(040pct)(mark)] > > > > > > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *Isaac Shalev > *Sent:* Thursday, August 22, 2019 5:29 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] Gift in kind recognition > > > > The rules for in-kind gifts of goods are clear: you do not provide a > receipt for the value of the gift, you only provide a description. I've > seen orgs use language that says something like 'Your contribution, which > saved the org an estimated amount of $______, is greatly appreciated.' It's > not my favorite approach, but I've seen it used. The point is that there is > no bar on sharing with the donor your valuation for the gift - a valuation > you're legally required to make. What you're not supposed to do is receipt > the donor for a contribution of that amount. > > > > It is certainly not the case that the donor should be receipted for a gift > of time. He gave pens. Whether he bought them or made them is > inconsequential from an IRS perspective. There is a difference between > in-kind gifts of time and in-kind gifts of property. This was clearly a > gift of personal property, not time. > > > > As to your recognition society, that's really a matter of stewardship and > policy, and ideally, should be addressed in your gift acceptance policy, > and if not there, then certainly in the gift agreement accompanying the > gift. It seems to me that the donor should be recognized, but you may see > it another way. > > > > 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 > <https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcalendly.com%2Fsage70%2F30min&data=02%7C01%7CHejnalA%40SI.EDU%7C829a97c185d74d9d462008d72747c149%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637021061452628065&sdata=qGzXyvXPnYUIKUZrAi5fJ2kyXeKrQR2fpus0YsthLuE%3D&reserved=0> > > > > > > On Thu, Aug 22, 2019 at 5:17 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > > First off, those who purchased the pens should not have been given a > receipt for any tax-deductible amount. The pens were worth $200 and they > paid $200 and so there was no net gift! > > > > As for the donor who made the pens and donated them to you, if you have a > standard policy of recognizing in-kind donors for their donations then this > donor would deserve that recognition. If, however, Lawrence Tech has a > policy that states in-kind donations are not added to recognition totals, > then simply show the donor that policy. > > > > While receipts for in-kind donations should not reflect a value, that does > not mean the donor cannot be recognized for their donation. It is the > legal tax receipt that is the only issue. Adding a corresponding amount to > lifetime giving totals is a fairly common practice. > > > > John > > > > John H. Taylor > > Principal > > John H. Taylor Consulting, LLC > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu> wrote: > > Hi all, > > > > We have an alumnus who has been raising this issue with various staff > members over the years (and even the President and some Deans/faculty...). > > > > He took it upon himself to make 100 fountain pens by hand to raise money > for a restoration project. They sold for $400 each and were valued, he > says, by the IRS at $200 each. So anyone who purchased one was receipted > with a tax deductible amount of $200 by the university. > > > > At the time this all happened, our department told him it would not > recognize a value for his "donation" of the pens to be sold. He was told it > was a gift of "time", while *his* accountant told him he was owed > acknowledgement for a $20,000 in-kind donation. > > > > He claimed this with the IRS the year of the sale on his own and evidently > had no issue, but he's most upset about not being recognized at a certain > lifetime giving society level based on the value of his donation. How are > your in-kind donors being recognized, if at all, if we're not providing > them with a stated value? > > > > Interested to hear thoughts from those more well-versed with GIKs and the > IRS. > > > > Thanks in advance, > > > > *Lauren Seebold* > > Director of Annual Giving > > Lawrence Technological University > > 21000 W. Ten Mile Road > > Southfield, MI 48075 > > Ph: 248.204.2309 > > > > *[ Make a Gift > <https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ltu.edu%2Fgiving%2Fonline-gift.asp&data=02%7C01%7CHejnalA%40SI.EDU%7C829a97c185d74d9d462008d72747c149%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637021061452628065&sdata=SJfKnwOlRcbO9Ku3z%2FYRxi4Xm4ccRTwMEXlXIdZZsac%3D&reserved=0> to > LTU* *]* > >

Long time lurker and infrequent contributor here - I want to say that it is appropriate that Alan works at the Smithsonian, as he is a national treasure! I have learned so much. Between Alan and John (and of course everyone else) this list is basically a master class in all things advancement/fundraising. And it’s not just learning what to do, but WHY to do it, which is the basis for understanding and applying concepts going forward. So thank you to Alan, John and everyone else for making this such a great community. I guess a late summer Friday has put me in a good mood…I don’t know what came over me…carry on everyone and have a good weekend! John John Waldman Executive Administrator, Foundation American Academy of Ophthalmology 655 Beach Street San Francisco, CA 94109 O: +1 415.447.0386 jwaldman@aao.org aao.org CONFIDENTIALITY NOTICE: This email and attachments contain material for the exclusive use by the intended recipient and may contain confidential information that is protected from use or disclosure under applicable law. If you are not the intended recipient, please notify the sender and delete the original message and attachments without making copies. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Hejnal, Alan Sent: Thursday, August 22, 2019 4:57 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Gift in kind recognition Certainly the donor contributed property, the pens, so you would issue a descriptive receipt, as Isaac says, with a description that indicated the nature and quality of the pens (fountain pens hand-crafted by … etc.). You should not provide a value, per the IRS written acknowledgment standard, and certainly in no way suggest in any way the amount that the donor might be able to take as a deduction. And I agree that, subject to your institutional policies, it might be appropriate to recognize the donor internally based on the value of the pens. All that having been said, it’s not *quite* the case that “whether he bought them or made them is inconsequential from an IRS perspective.” It seems to me that the IRS would, if they examined his return, regard the pens as “ordinary income property” (if he had made the pens and sold them rather than donated them, the IRS would have treated the income from their sale as ordinary income), so the donor would only be able to deduct his basis in the pens, or roughly his cost of the materials used to create them. It’s similar to an artist selling artwork that she created. All of which makes it all the more important to stick to a descriptive receipt, and certainly not issue an “acknowledgement for a $20,000 in-kind donation.” (If the donor had bought the pens, which are considered tangible personal property, and donated them, since the pens were not used for the charitable purpose of the organization but used as a premium—or as an auction item, or sold—the donor would still only be able to deduct no more than his basis in the pens, but in that case his basis would likely be closer to the fair market value of the pens, especially if he had bought them at their full retail value!) Lots of things to keep in mind! My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 •: 202-633-8754 | •: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Isaac Shalev Sent: Thursday, August 22, 2019 5:29 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Gift in kind recognition The rules for in-kind gifts of goods are clear: you do not provide a receipt for the value of the gift, you only provide a description. I've seen orgs use language that says something like 'Your contribution, which saved the org an estimated amount of $______, is greatly appreciated.' It's not my favorite approach, but I've seen it used. The point is that there is no bar on sharing with the donor your valuation for the gift - a valuation you're legally required to make. What you're not supposed to do is receipt the donor for a contribution of that amount. It is certainly not the case that the donor should be receipted for a gift of time. He gave pens. Whether he bought them or made them is inconsequential from an IRS perspective. There is a difference between in-kind gifts of time and in-kind gifts of property. This was clearly a gift of personal property, not time. As to your recognition society, that's really a matter of stewardship and policy, and ideally, should be addressed in your gift acceptance policy, and if not there, then certainly in the gift agreement accompanying the gift. It seems to me that the donor should be recognized, but you may see it another way. Thank you, Isaac Shalev CRM Expert Sage70, Inc. (917) 859-0151 isaac@sage70.com<mailto:isaac@sage70.com> Schedule a 30-minute consultation now: https://calendly.com/sage70/30min<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcalendly.com%2Fsage70%2F30min&data=02%7C01%7CHejnalA%40SI.EDU%7C829a97c185d74d9d462008d72747c149%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637021061452628065&sdata=qGzXyvXPnYUIKUZrAi5fJ2kyXeKrQR2fpus0YsthLuE%3D&reserved=0> On Thu, Aug 22, 2019 at 5:17 PM John Taylor <johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com>> wrote: First off, those who purchased the pens should not have been given a receipt for any tax-deductible amount. The pens were worth $200 and they paid $200 and so there was no net gift! As for the donor who made the pens and donated them to you, if you have a standard policy of recognizing in-kind donors for their donations then this donor would deserve that recognition. If, however, Lawrence Tech has a policy that states in-kind donations are not added to recognition totals, then simply show the donor that policy. While receipts for in-kind donations should not reflect a value, that does not mean the donor cannot be recognized for their donation. It is the legal tax receipt that is the only issue. Adding a corresponding amount to lifetime giving totals is a fairly common practice. John John H. Taylor Principal John H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu<mailto:lseebold@ltu.edu>> wrote: Hi all, We have an alumnus who has been raising this issue with various staff members over the years (and even the President and some Deans/faculty...). He took it upon himself to make 100 fountain pens by hand to raise money for a restoration project. They sold for $400 each and were valued, he says, by the IRS at $200 each. So anyone who purchased one was receipted with a tax deductible amount of $200 by the university. At the time this all happened, our department told him it would not recognize a value for his "donation" of the pens to be sold. He was told it was a gift of "time", while his accountant told him he was owed acknowledgement for a $20,000 in-kind donation. He claimed this with the IRS the year of the sale on his own and evidently had no issue, but he's most upset about not being recognized at a certain lifetime giving society level based on the value of his donation. How are your in-kind donors being recognized, if at all, if we're not providing them with a stated value? Interested to hear thoughts from those more well-versed with GIKs and the IRS. Thanks in advance, Lauren Seebold Director of Annual Giving Lawrence Technological University 21000 W. Ten Mile Road Southfield, MI 48075 Ph: 248.204.2309 [ Make a Gift<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ltu.edu%2Fgiving%2Fonline-gift.asp&data=02%7C01%7CHejnalA%40SI.EDU%7C829a97c185d74d9d462008d72747c149%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637021061452628065&sdata=SJfKnwOlRcbO9Ku3z%2FYRxi4Xm4ccRTwMEXlXIdZZsac%3D&reserved=0> to LTU ]

This is one time the “me, too” ban should be ignored. I heartily agree with John’s assessment! Cathey Barbee Assistant Vice Chancellor, Advancement Services University of Denver Administrative Offices Building, 4th Floor 2601 E. Colorado Ave. Denver, CO 80208 TEL: 303.871.3949 [advancement logo] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Waldman Sent: Friday, August 23, 2019 10:27 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Gift in kind recognition Long time lurker and infrequent contributor here - I want to say that it is appropriate that Alan works at the Smithsonian, as he is a national treasure! I have learned so much. Between Alan and John (and of course everyone else) this list is basically a master class in all things advancement/fundraising. And it’s not just learning what to do, but WHY to do it, which is the basis for understanding and applying concepts going forward. So thank you to Alan, John and everyone else for making this such a great community. I guess a late summer Friday has put me in a good mood…I don’t know what came over me…carry on everyone and have a good weekend! John John Waldman​ Executive Administrator, Foundation American Academy of Ophthalmology 655 Beach Street San Francisco, CA 94109<https://www.google.com/maps/place/655+Beach+St,+San+Francisco,+CA+94109/data=!4m2!3m1!1s0x808580e116bb8f35:0x112507c2efca6345?sa=X&ved=0ahUKEwj9tr2UxqrKAhUH6GMKHRUaBcMQ8gEIHjAA> O: +1 415.447.0386<tel:+1%20415.447.0386> jwaldman@aao.org<mailto:jwaldman@aao.org> aao.org<http://aao.org> [cid:image004.png@01D559A2.E969D9A0]<https://www.aao.org> CONFIDENTIALITY NOTICE: This email and attachments contain material for the exclusive use by the intended recipient and may contain confidential information that is protected from use or disclosure under applicable law. If you are not the intended recipient, please notify the sender and delete the original message and attachments without making copies. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Hejnal, Alan Sent: Thursday, August 22, 2019 4:57 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Gift in kind recognition Certainly the donor contributed property, the pens, so you would issue a descriptive receipt, as Isaac says, with a description that indicated the nature and quality of the pens (fountain pens hand-crafted by … etc.). You should not provide a value, per the IRS written acknowledgment standard, and certainly in no way suggest in any way the amount that the donor might be able to take as a deduction. And I agree that, subject to your institutional policies, it might be appropriate to recognize the donor internally based on the value of the pens. All that having been said, it’s not *quite* the case that “whether he bought them or made them is inconsequential from an IRS perspective.” It seems to me that the IRS would, if they examined his return, regard the pens as “ordinary income property” (if he had made the pens and sold them rather than donated them, the IRS would have treated the income from their sale as ordinary income), so the donor would only be able to deduct his basis in the pens, or roughly his cost of the materials used to create them. It’s similar to an artist selling artwork that she created. All of which makes it all the more important to stick to a descriptive receipt, and certainly not issue an “acknowledgement for a $20,000 in-kind donation.” (If the donor had bought the pens, which are considered tangible personal property, and donated them, since the pens were not used for the charitable purpose of the organization but used as a premium—or as an auction item, or sold—the donor would still only be able to deduct no more than his basis in the pens, but in that case his basis would likely be closer to the fair market value of the pens, especially if he had bought them at their full retail value!) Lots of things to keep in mind! My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 •: 202-633-8754 | •: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Isaac Shalev Sent: Thursday, August 22, 2019 5:29 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Gift in kind recognition The rules for in-kind gifts of goods are clear: you do not provide a receipt for the value of the gift, you only provide a description. I've seen orgs use language that says something like 'Your contribution, which saved the org an estimated amount of $______, is greatly appreciated.' It's not my favorite approach, but I've seen it used. The point is that there is no bar on sharing with the donor your valuation for the gift - a valuation you're legally required to make. What you're not supposed to do is receipt the donor for a contribution of that amount. It is certainly not the case that the donor should be receipted for a gift of time. He gave pens. Whether he bought them or made them is inconsequential from an IRS perspective. There is a difference between in-kind gifts of time and in-kind gifts of property. This was clearly a gift of personal property, not time. As to your recognition society, that's really a matter of stewardship and policy, and ideally, should be addressed in your gift acceptance policy, and if not there, then certainly in the gift agreement accompanying the gift. It seems to me that the donor should be recognized, but you may see it another way. Thank you, Isaac Shalev CRM Expert Sage70, Inc. (917) 859-0151 isaac@sage70.com<mailto:isaac@sage70.com> Schedule a 30-minute consultation now: https://calendly.com/sage70/30min<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcalendly.com%2Fsage70%2F30min&data=02%7C01%7CHejnalA%40SI.EDU%7C829a97c185d74d9d462008d72747c149%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637021061452628065&sdata=qGzXyvXPnYUIKUZrAi5fJ2kyXeKrQR2fpus0YsthLuE%3D&reserved=0> On Thu, Aug 22, 2019 at 5:17 PM John Taylor <johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com>> wrote: First off, those who purchased the pens should not have been given a receipt for any tax-deductible amount. The pens were worth $200 and they paid $200 and so there was no net gift! As for the donor who made the pens and donated them to you, if you have a standard policy of recognizing in-kind donors for their donations then this donor would deserve that recognition. If, however, Lawrence Tech has a policy that states in-kind donations are not added to recognition totals, then simply show the donor that policy. While receipts for in-kind donations should not reflect a value, that does not mean the donor cannot be recognized for their donation. It is the legal tax receipt that is the only issue. Adding a corresponding amount to lifetime giving totals is a fairly common practice. John John H. Taylor Principal John H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Aug 22, 2019 at 5:12 PM Lauren Seebold <lseebold@ltu.edu<mailto:lseebold@ltu.edu>> wrote: Hi all, We have an alumnus who has been raising this issue with various staff members over the years (and even the President and some Deans/faculty...). He took it upon himself to make 100 fountain pens by hand to raise money for a restoration project. They sold for $400 each and were valued, he says, by the IRS at $200 each. So anyone who purchased one was receipted with a tax deductible amount of $200 by the university. At the time this all happened, our department told him it would not recognize a value for his "donation" of the pens to be sold. He was told it was a gift of "time", while his accountant told him he was owed acknowledgement for a $20,000 in-kind donation. He claimed this with the IRS the year of the sale on his own and evidently had no issue, but he's most upset about not being recognized at a certain lifetime giving society level based on the value of his donation. How are your in-kind donors being recognized, if at all, if we're not providing them with a stated value? Interested to hear thoughts from those more well-versed with GIKs and the IRS. Thanks in advance, Lauren Seebold Director of Annual Giving Lawrence Technological University 21000 W. Ten Mile Road Southfield, MI 48075 Ph: 248.204.2309 [ Make a Gift<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ltu.edu%2Fgiving%2Fonline-gift.asp&data=02%7C01%7CHejnalA%40SI.EDU%7C829a97c185d74d9d462008d72747c149%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637021061452628065&sdata=SJfKnwOlRcbO9Ku3z%2FYRxi4Xm4ccRTwMEXlXIdZZsac%3D&reserved=0> to LTU ]