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  • 1.  Disclosing Gift Amounts in Acknowledgements

    Posted 8 hours ago

    Hello, 

    We have a surviving spouse of a donor, deceased that is asking us to resend our acknowledgement letter acknowledging their spouse's planned gift but to include the amount as they are "worried about the IRS thinking that money was theirs for their taxes" and not from their spouse's own IRA given to us a gift upon their passing. 

    I know that Gift-in-Kinds we are not to disclose the amount in the Acknowledgement Letter but to recommend they speak with their financial advisor for tax purposes instead. 

    Can we share the amount with surviving family of donors' planned gifts received? And are there any other instances (like GIKs) to make sure following IRS, CASE, best practices, etc. that we do NOT disclose the actual amount received?

    Thank you,

    Rachael



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    Rachael Pezzuti
    Gannon University
    pezzuti001@gannon.edu
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  • 2.  RE: Disclosing Gift Amounts in Acknowledgements

    Posted 7 hours ago
    A planned gift is not a GIK (unless you are referring to real or personal property being donated). So, by all means, the cash value of the IRA assets (or whatever) must be disclosed on the receipt.

    As you point out, IRS Publication 1771 instructs us to describe, not value, property gifts, which include securities and cryptocurrency. Every once in a while, a donor might push back on receiving only a description, even after you show them 1771. Rather than risk making the donor mad, I'll provide a receipt that says, "Thank you for your generous contribution of [property description]. For our internal purposes only, we are recognizing this contribution at $XX,XXX. For income tax purposes, you will need to seek guidance from your tax advisor to determine any deductible value."

    Or words to that effect.

    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


  • 3.  RE: Disclosing Gift Amounts in Acknowledgements

    Posted 7 hours ago

    Sounds good, I just wanted to make sure we only disclose what we can and need to in all gift instances. Thank you, John.



    ------------------------------
    Rachael Pezzuti
    Gannon University
    pezzuti001@gannon.edu
    ------------------------------

    Original Message


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