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  • 1.  Donations and giveaways

    Posted 06-28-2023 01:22 PM
    Edited by Ann Carman 06-28-2023 01:23 PM

    If someone is holding and event and they offer a free t-shirt at the event by giving a donation do you have to subtract out the t-shirt cost or is there a certain dollar amount that you don't need to do this? The same for free parking spaces raffles ect....



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    Ann Carman
    Hartwick College
    gifts@hartwick.edu
    ------------------------------



  • 2.  RE: Donations and giveaways

    Posted 06-28-2023 01:29 PM
    Yes. It's called a quid pro quo. You must subtract the fair market value of the t-shirt from the gift amount and issue a QPQ receipt.

    You can avoid this disclosure if the t-shirt value is under $12.50 and the minimum gift amount os $62.50 and the t-shirt includes your name or logo. The other exception is if the t-shirt value is less than 2% of the amount given.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Donations and giveaways

    Posted 06-29-2023 01:35 PM

    What if someone sends an end of year appeal and says if you donate your name will go into a gift basket drawing?  



    ------------------------------
    Ann Carman
    Hartwick College
    gifts@hartwick.edu
    ------------------------------

    Original Message


  • 4.  RE: Donations and giveaways

    Posted 06-29-2023 01:38 PM
    Then that is a game of chance and nullifies the gift. You can avoid that by making it known publicly that anyone may enter the drawing without making a gift.

    John
    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 5.  RE: Donations and giveaways

    Posted 06-29-2023 02:38 PM

    so here's my issue.  Someone went and did a basket up and sent out an EOY appeal saying give a gift and your name will go in for a chance to win.  At this point they can't put a public notice out for other saying just put your name in "without a gift" because that would upset people.  So person X gives let's say $100 and wins the basket.  What do I do with the $100 if it nullifies the gift?  Sorry for all the questions



    ------------------------------
    Ann Carman
    Hartwick College
    gifts@hartwick.edu
    ------------------------------

    Original Message


  • 6.  RE: Donations and giveaways

    Posted 06-29-2023 03:08 PM
    Every single payment you receive under this scheme is miscellaneous revenue. And, depending on your State, it may be subject to reporting as "gaming income."

    NO donors can treat these payments as charitable contributions (win or lose), so no gift receipts can be issued.

    You will need to speak with your CFO regarding Connecticut gaming regulations. I just returned from a consulting project in Louisiana, and we were discussing the new State laws regarding raffles - the forms are crazy. But, at least they knew what they had to complete and file with the State.

    As for the winner, I am happy for them. As the value is under $600, no 1099 is required.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


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