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  • 1.  Applying premium benefit to the corporation rather than their foundation

    Posted 02-21-2024 12:15 PM
    We have a fundraising gala that sells tickets at $175/each (no charitable gift portion).  
    A table sponsor for $5,000 includes a table of 10 for a premium benefit amount of $1,750.
    An Event Sponsor for $50,000 includes 2 tables of 10 for a premium benefit amount of $3,500 ($1,750 x 2).

    We have a corporation and their foundation who each want to be a $50,000 event sponsor. However, they'd like all of the benefit portion for their 4 tables to be applied to the company's gift, rather than the foundation's.

    This makes me uneasy. Is there any situation in which this is allowed?  Ie, 

    - what if we updated our policy, so that any $50,000 Event Sponsor is automatically offered 2 tables; but at their request, we would honor up to 4 tables with an adjusted premium (ie 4x $1,750). That would apply the same rules to every Event Sponsor. 

    --
     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



  • 2.  RE: Applying premium benefit to the corporation rather than their foundation

    Posted 02-21-2024 12:24 PM
    No - you cannot do that. The foundation is still (inappropriately) earning a benefit that they are then conveying to the company. This is not unlike bifurcation which the IRS disallows.

    Under no circumstance can any gift result in a benefit to a private foundation. The company could legitimately earn all benefits and then whoever they decide to give them to is up to them. But there couldn't be any evidence of self-dealing or under-the-table handshakes.

    Let Counsel figure this out.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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