FundSvcs Community

 View Only
  • 1.  Contributions "passing through" a vendor/company

    Posted 07-03-2024 07:22 PM

    Hi! Happy weird July 4th week!

    Having trouble finding info on this. 

    We have a company/vendor organizing an elite, non-fundraising event for a VIP group. The participants pay the company directly for the expenses of the event, but there is an option to make an additional donation to us. This is added to the fee and processed by the vendor. After the event, the total combined contribution amount goes to us in one lump sum directly from the vendor.

    It is clearly stated on the participant registration form and in the contract with the vendor that additional contributions will go to us.

    Considering the funds are processed by the for-profit vendor, can we issue the donors a tax receipt for their contribution?

    Thanks so much for your help.



    ------------------------------
    Peter Szumlas
    Los Angeles Philharmonic Association
    pszumlas@laphil.org
    ------------------------------


  • 2.  RE: Contributions "passing through" a vendor/company

    Posted 07-03-2024 08:57 PM
    This only works if your institution has a binding agreement with the vendor, allowing them to serve as your fiduciary (legal or fiscal agent) for these purposes. Otherwise, the donation can only be entered as a gift from the vendor or, in some circumstances, on a "Various Donors" record with no tax receipt going to anyone.

    Of course, this should only have been permitted with advance notice and discussion with your CFO and Counsel. Even so, it can be "managed" with a document prepared by either your CFO or Counsel authorizing this partnership after-the-fact. But this is only something those Officers can approve.

    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






  • 3.  RE: Contributions "passing through" a vendor/company

    Posted 07-03-2024 11:46 PM

    Thank you for the quick and informative response! Very helpful. These are great talking points I can take back to suggest changes.

    Have a restful one-day holiday!



    ------------------------------
    Peter Szumlas
    Los Angeles Philharmonic Association
    pszumlas@laphil.org
    ------------------------------



  • 4.  RE: Contributions "passing through" a vendor/company

    Posted 07-04-2024 06:23 AM
    Glad to help!

    You may also want to consider creating a Third Party Fundraising Policy that lays all of this out and includes a form any group other than Philanthropy - internal or external - must complete and have approved before authorizing any activity that engages your donors.

    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