FundSvcs Community

We are starting to offer donors the opportunity to donate $5 to receive a limited-edition branded item in return (FMV = $0.57). Eventually, this will be $25 for a t-shirt that won't meet QPQ minimums. Since this sets off the QPQ rules, I'm prepared to issue the proper receipts with the FMV declared. However, this promotion is getting advertised on social media and sent out on traditional mailers and the like. My gut tells me that in the copy that says "Make a $5 donation and get this item!" we should footnote it in the ads and mailers to say "Gift will be receipted less the fair market value." 

Is this required legally or just best practice?

Thank you!

------------------------------
Jodie M. Ralston
Executive Director
Advancement Services
T 315.443.1718 F 315.443.2874
jralston@syr.edu
640 Skytop Road, Room 241, Syracuse, NY 13244
giving.syracuse.edu
Syracuse University
------------------------------

Original Message:
Sent: 9/14/2022 4:20:00 PM
From: Jodie Ralston
Subject: disclosure of FMV on solicitation ads

We are starting to offer donors the opportunity to donate $5 to receive a limited-edition branded item in return (FMV = $0.57). Eventually, this will be $25 for a t-shirt that won't meet QPQ minimums. Since this sets off the QPQ rules, I'm prepared to issue the proper receipts with the FMV declared. However, this promotion is getting advertised on social media and sent out on traditional mailers and the like. My gut tells me that in the copy that says "Make a $5 donation and get this item!" we should footnote it in the ads and mailers to say "Gift will be receipted less the fair market value." 

Is this required legally or just best practice?

Thank you!

------------------------------
Jodie M. Ralston
Executive Director
Advancement Services
T 315.443.1718 F 315.443.2874
jralston@syr.edu
640 Skytop Road, Room 241, Syracuse, NY 13244
giving.syracuse.edu
Syracuse University
------------------------------

Original Message:
Sent: 9/14/2022 4:40:00 PM
From: John H. Taylor
Subject: RE: disclosure of FMV on solicitation ads

Jodie, you are not required to issue any receipt at the $5 level (and up to $75).  Further, entering QPQ gifts for $5 will tax your gift entry staff.

Perhaps you might consider no receipt at all - and maybe even entering all the donations onto a "Various Donors" record to give your entry staff a break.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 9/14/2022 4:20:00 PM
From: Jodie Ralston
Subject: disclosure of FMV on solicitation ads

We are starting to offer donors the opportunity to donate $5 to receive a limited-edition branded item in return (FMV = $0.57). Eventually, this will be $25 for a t-shirt that won't meet QPQ minimums. Since this sets off the QPQ rules, I'm prepared to issue the proper receipts with the FMV declared. However, this promotion is getting advertised on social media and sent out on traditional mailers and the like. My gut tells me that in the copy that says "Make a $5 donation and get this item!" we should footnote it in the ads and mailers to say "Gift will be receipted less the fair market value." 

Is this required legally or just best practice?

Thank you!

------------------------------
Jodie M. Ralston
Executive Director
Advancement Services
T 315.443.1718 F 315.443.2874
jralston@syr.edu
640 Skytop Road, Room 241, Syracuse, NY 13244
giving.syracuse.edu
Syracuse University
------------------------------

Original Message:
Sent: 9/14/2022 4:43:00 PM
From: Jodie Ralston
Subject: RE: disclosure of FMV on solicitation ads

Thanks John!

 

Most of these will come through our online giving site, which can handle the QPQ automatically, as can our import into CRM process. (This would be a whole other story if not the case!) But the real drive behind this is donor acquisition, so recording these to a "various donors" record won't work either.

 

My main concern is the ad solicitation copy and whether or not we need to disclose the FMV on there.

 

--Jodie

Jodie M. Ralston
Executive Director, Advancement Services
Advancement and External Affairs

T 315.443.1718
jralston@syr.edu

 

Original Message:
Sent: 9/14/2022 4:40:00 PM
From: John H. Taylor
Subject: RE: disclosure of FMV on solicitation ads

Jodie, you are not required to issue any receipt at the $5 level (and up to $75).  Further, entering QPQ gifts for $5 will tax your gift entry staff.

Perhaps you might consider no receipt at all - and maybe even entering all the donations onto a "Various Donors" record to give your entry staff a break.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 9/14/2022 4:20:00 PM
From: Jodie Ralston
Subject: disclosure of FMV on solicitation ads

We are starting to offer donors the opportunity to donate $5 to receive a limited-edition branded item in return (FMV = $0.57). Eventually, this will be $25 for a t-shirt that won't meet QPQ minimums. Since this sets off the QPQ rules, I'm prepared to issue the proper receipts with the FMV declared. However, this promotion is getting advertised on social media and sent out on traditional mailers and the like. My gut tells me that in the copy that says "Make a $5 donation and get this item!" we should footnote it in the ads and mailers to say "Gift will be receipted less the fair market value." 

Is this required legally or just best practice?

Thank you!

------------------------------
Jodie M. Ralston
Executive Director
Advancement Services
T 315.443.1718 F 315.443.2874
jralston@syr.edu
640 Skytop Road, Room 241, Syracuse, NY 13244
giving.syracuse.edu
Syracuse University
------------------------------

Original Message:
Sent: 9/14/2022 4:50:00 PM
From: John H. Taylor
Subject: RE: disclosure of FMV on solicitation ads

The more information, the better - although I doubt donors will care at this level.

I would answer with an unequivocal YES if this was a $100 benefit for a $1,000 gift.  But as long as you inform the donor on the receipt, I believe you have done what's necessary.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 9/14/2022 4:43:00 PM
From: Jodie Ralston
Subject: RE: disclosure of FMV on solicitation ads

Thanks John!

 

Most of these will come through our online giving site, which can handle the QPQ automatically, as can our import into CRM process. (This would be a whole other story if not the case!) But the real drive behind this is donor acquisition, so recording these to a "various donors" record won't work either.

 

My main concern is the ad solicitation copy and whether or not we need to disclose the FMV on there.

 

--Jodie

Jodie M. Ralston
Executive Director, Advancement Services
Advancement and External Affairs

T 315.443.1718
jralston@syr.edu

 

Original Message:
Sent: 9/14/2022 4:40:00 PM
From: John H. Taylor
Subject: RE: disclosure of FMV on solicitation ads

Jodie, you are not required to issue any receipt at the $5 level (and up to $75).  Further, entering QPQ gifts for $5 will tax your gift entry staff.

Perhaps you might consider no receipt at all - and maybe even entering all the donations onto a "Various Donors" record to give your entry staff a break.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 9/14/2022 4:20:00 PM
From: Jodie Ralston
Subject: disclosure of FMV on solicitation ads

We are starting to offer donors the opportunity to donate $5 to receive a limited-edition branded item in return (FMV = $0.57). Eventually, this will be $25 for a t-shirt that won't meet QPQ minimums. Since this sets off the QPQ rules, I'm prepared to issue the proper receipts with the FMV declared. However, this promotion is getting advertised on social media and sent out on traditional mailers and the like. My gut tells me that in the copy that says "Make a $5 donation and get this item!" we should footnote it in the ads and mailers to say "Gift will be receipted less the fair market value." 

Is this required legally or just best practice?

Thank you!

------------------------------
Jodie M. Ralston
Executive Director
Advancement Services
T 315.443.1718 F 315.443.2874
jralston@syr.edu
640 Skytop Road, Room 241, Syracuse, NY 13244
giving.syracuse.edu
Syracuse University
------------------------------