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  • 1.  Another Who is the Donor Question

    Posted 11-09-2022 10:14 AM

    I thought I had this question completely squared away in my mind that the last person in control of the money is the legal donor.  But, for some reason, I'm questioning my belief system over a new one that has come in the door to us.

     

    So, we partnered with another non-profit to put on an event.  This other non-profit is a performing arts organization that had the venue.  They sold the tickets to the event.  Three attendees of the event paid over-and-above their ticket purchases stating that the overage was a donation to our organization.  The Arts org has cut us a check for these donations, along with the names of the donors.  They did not issue tax receipts to these people.

     

    So, are we safe to make these three people the legal, hard-credited donors of their respective donations to us?  Or, is the Arts org the hard-credit/legal donor and we can only soft-credit the three donors?

     

    Thank you all in advance for weighing in.

     

    Lisa

     

    Lisa S. Geiersbach

    Director of Advancement Services

     

    Northwood University

     



  • 2.  RE: Another Who is the Donor Question

    Posted 11-09-2022 10:18 AM
    Yes, you are "safe."  However, I would have your CFO and their CFO sign a simple document that indicates the other organization was authorized to serve as your fiscal agent for this limited purpose.

    If the CFOs are not willing to execute such a document, you might have to ask the other organization to return those payments with instructions to send contributions directly to you.  However, I doubt that will be necessary!

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Another Who is the Donor Question

    Posted 11-09-2022 02:10 PM

    Thank you, John! 

     

    I asked our CFO and he is wondering if there are template documents with such statements?  It seems simple enough to create but I told him I'd ask in case there already was something this community had they could send along. 

     

     

    Lisa

     

    Lisa S. Geiersbach

    Director of Advancement Services

     

    Northwood University

     

     

     

     

     




    Original Message


  • 4.  RE: Another Who is the Donor Question

    Posted 11-09-2022 02:25 PM
    There are numerous templates on the internet.  However, they are quite specific to the organization and the state the organization is in.  You are better off having Counsel draw something up.  But as a reference, here are three but for different forms of fiscal agency:




    I am not a lawyer.  However, for something as minor as this particular event, the letter can probably be only a few sentences long:

    During the period of MM/DD/YYYY and MM/DD/YYYY, XYZ authorizes 123 to serve as a limited fiscal agent on behalf of XYZ.

    During the stated period, and in conjunction with the ABC event only, XYZ authorizes 123 to receive and deposit funds designated specifically for XYZ.  Immediately upon completion of the ABC event, 123 shall issue a check for the full amount of funds donated on behalf of XYZ.  In conveying the funds, 123 shall also provide copies of the documentation, check, or other supporting information from the donor who designated ABC.  These elements are crucial to ensure ABC has sufficient evidence to issue a charitable gift receipt to the donor.

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


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