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  • 1.  Dividing FMV among a group of donors

    Posted 04-04-2025 12:32 PM

    We are offering a sponsorship package to an upcoming event that include two tickets to the dinner that will take place at the event. along with other intangibles like having the sponsor name appear in the program. Sponsors know that their sponsorship donation will be reduced by the FMV of the two tickets to dinner.

    A group of people have come forward and said they would like to 'chip in' and collectively make online donations totaling the amount of the sponsorship. We don't know how many people from this group will actually make a gift, and the amount of each member would vary according to what they could afford. The members of the group will decide who among them actually gets the two tickets once their total donations reach the sponsorship level.

    We're trying to figure out how to apportion the FMV for the two tickets among each of the donors. One proposal is to assess each donor a fraction of the FMV based on what fraction of the full sponsor package price their gift represents, but never having done this before we don't know if there is a better way to do this.

    Does anyone have experience with a situation like this and suggestions how we ought to proceed?



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    Aimee Holland
    Alameda Health System Foundation
    aholland@alamedahealthsystem.org
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  • 2.  RE: Dividing FMV among a group of donors

    Posted 04-04-2025 03:02 PM
    Your sponsorship guidelines should require a single payment from a single source. Anything else creates unnecessary overhead and processing.

    Further, doing as they propose may result in you having to collect payments-or worse, refunding received payments when they collectively don't pay the full sponsorship fee.

    Tell them that one person will need to cover the sponsorship payment for the current scenario. Who, how, and when they collect from the others is for them to worry about.

    And if you are thinking about deduction issues, I wouldn't worry. With the higher standard deduction levels, it is unlikely any of these participants will end up itemizing anyway (only 1 in 11 taxpayers do).

    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