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  • 1.  Benefits on a Bequest and QPQ

    Posted 04-04-2024 03:50 PM

    Hello, 

    A bequest agreement has been submitted to our office with the proposed recognition items and I could use help navigating our response on rejecting them from the agreement:

    The donor also requests four (4) tickets for each performance in the theater to be held for purchase as "house seats" (Orchestra 10th row center) until 48 hours before curtain. 

    I am mostly certain this one would require benefit deductions on the gift per IRS 526, if they elect to still include this clause how would we calculate that, and would it be reduced on the bequest when it is realized and/or when the expectancy is booked?


    The donor will donate art to be displayed in the xxxx Lobby subject to approval by the School of xxxx. Priority will be given to the donor's personal donations (not to be unreasonably withheld). Artwork to be installed in as safe and secure of a manner as is reasonably possible. 

    This feels quid pro quo, what resources can we provide our team to back up rejecting this? I have advised this is handled separately as a gift in kind. Does including this language negate the full valuation of the bequest as a gift?


    At each and any event funded by the endowment, recognition (verbally and in print) will be given at each event. 

    Is verbal donor recognition at events acceptable as a non-tangible acknowledgment?



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    Jayme Fancher
    San Diego State University
    jfancher@sdsu.edu
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  • 2.  RE: Benefits on a Bequest and QPQ

    Posted 04-04-2024 04:25 PM
    Yes, in the first case, this request represents a quid pro quo. However, I'd suggest that the benefit not be provided until realized and awarded to the estate. You should not give tickets away in exchange for a revocable commitment. If you want to honor the request now, the donor should purchase the tickets and they can reduce the bequest by the value of the tickets. Ask the theater what the tickets are worth.

    As to the art donation, I cannot imagine what the donor means by having their donation prioritized. That's a subjective condition and not one I would honor as written.

    And there's nothing wrong with verbal recognition.

    But if you all do not want to accept these gifts you do not have to. You don't need an excuse to turn them down!

    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