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  • 1.  CGA payment

    Posted 12-24-2024 10:08 AM

    We have a donor who set up a CGA a few years ago.  He has now asked instead of receiving the quarterly payments that they are redirected back to us as an outright gift.  We have received one payment to date and sent a tax receipt.  Our finance team has asked that we code this as a CGA instead of an unrestricted gift.  I don't believe that this is correct.  Has anyone done this before?

    Thank you,

    Beth



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    Beth Friedmann
    AJWS
    bfriedmann@ajws.org
    ------------------------------


  • 2.  RE: CGA payment

    Posted 12-24-2024 10:33 AM
    As long as Finance issues a 1099 to the donor reflection these payments as income, they can be treated as OUTRIGHT gifts to you. Normally, the donor would receive the check, deposit it, pay taxes, and then make a gift to you.

    If the donor is saying they no longer want ANY income,!the CGA paperwork will need to be redrawn by a professional - with an ADDITIONAL CGA gift established.

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas - Small Keyboard





  • 3.  RE: CGA payment

    Posted 12-24-2024 10:45 AM

    Thank you!  This was my understanding.  The donor will still receive the 1099 and understands that they are required to pay taxes.



    ------------------------------
    Beth Friedmann
    AJWS
    bfriedmann@ajws.org
    ------------------------------

    Original Message


  • 4.  RE: CGA payment

    Posted 12-24-2024 10:45 AM
    As an aside, Finance is wrong in either case. It is either an outright gift (if the donor treats the payment as income and receives a 1099), or a new "additional" CGA gift is established reflecting the face and present value of all "refused" future payments.

    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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