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  • 1.  Donated Services and Gratuities

    Posted 08-02-2024 11:36 AM

    When services ae donated by a vendor, how should any gratuities paid to the vendor for their work be handled?  For example, if event includes complimentary labor provided by the venue, would gratuities be permissible?  Would we need to obtain an invoice reflecting the complimentary services to include the gratuity?

    I understand that donated services is not a charitable contribution and cannot be counted.

    Thank you.



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    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
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  • 2.  RE: Donated Services and Gratuities

    Posted 08-02-2024 11:39 AM
    The same applies to gratuities as the service itself. That is an "add-on" for exemplary services. Furthermore, the gratuity benefits specific individuals - the service providers.

    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: Donated Services and Gratuities

    Posted 08-06-2024 11:56 AM
    Yes, an invoice with a gratuity line is a typical way to handle this, even if the service itself is donated. Vendors will often provide an invoice for donated services anyway, and those who deal with gratuities will be able to add a gratuity line to the invoice. SC has a sales tax, and in other states I'm familiar with specific requirements for the invoice to prevent the gratuity amount from being subject to sales tax. Your vendor likely is aware of these issues. 


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