FundSvcs Community

Hello! 

I'm interested in how other organizations handle fair market value (FMV) determinations for event tickets, particularly when a donor wishes to separate the payment between personal funds and a donor-advised fund (DAF).

For example:
A donor would like to pay for their event tickets out of pocket and use their DAF to pay for the sponsorship portion. The face value of the ticket is $500, while the organization's internal cost per person for the event is approximately $125.

In this scenario, are you:

• Requiring the donor to pay the full stated ticket value ($500) personally and treating that as the FMV for purposes of DAF compliance and quid pro quo rules?
• Or are you allowing donors to pay only the internal cost personally and directing the remainder through the DAF?

How are you determining and documenting FMV in these cases?

Additionally, how are you handling donor pushback when they prefer to use DAF funds toward sponsorships that include event benefits?

Appreciate any insight into how others are approaching this from both a compliance and donor-relations perspective.

Hello! 

I'm interested in how other organizations handle fair market value (FMV) determinations for event tickets, particularly when a donor wishes to separate the payment between personal funds and a donor-advised fund (DAF).

For example:
A donor would like to pay for their event tickets out of pocket and use their DAF to pay for the sponsorship portion. The face value of the ticket is $500, while the organization's internal cost per person for the event is approximately $125.

In this scenario, are you:

• Requiring the donor to pay the full stated ticket value ($500) personally and treating that as the FMV for purposes of DAF compliance and quid pro quo rules?
• Or are you allowing donors to pay only the internal cost personally and directing the remainder through the DAF?

How are you determining and documenting FMV in these cases?

Additionally, how are you handling donor pushback when they prefer to use DAF funds toward sponsorships that include event benefits?

Appreciate any insight into how others are approaching this from both a compliance and donor-relations perspective.

Hi Issac, 

Thanks for your quick reply! I should clarify that the donor intends to pay for the tickets out of pocket. The issue arising is based on IRS regulations: the donor should pay the face value of the ticket, $500, but there is pushback that it should be the internal cost, $125 (cost of the dinner/service). Which, from my understanding, would be to pay the face value, as that is the market value of the event ticket and would not lead to bifurcation. If I am incorrect, how have folks dealt with communicating this to donors who may have been able to do so at other organizations' events? 

Thanks!

Kendra 

Hello! 

I'm interested in how other organizations handle fair market value (FMV) determinations for event tickets, particularly when a donor wishes to separate the payment between personal funds and a donor-advised fund (DAF).

For example:
A donor would like to pay for their event tickets out of pocket and use their DAF to pay for the sponsorship portion. The face value of the ticket is $500, while the organization's internal cost per person for the event is approximately $125.

In this scenario, are you:

• Requiring the donor to pay the full stated ticket value ($500) personally and treating that as the FMV for purposes of DAF compliance and quid pro quo rules?
• Or are you allowing donors to pay only the internal cost personally and directing the remainder through the DAF?

How are you determining and documenting FMV in these cases?

Additionally, how are you handling donor pushback when they prefer to use DAF funds toward sponsorships that include event benefits?

Appreciate any insight into how others are approaching this from both a compliance and donor-relations perspective.

Hello! 

I'm interested in how other organizations handle fair market value (FMV) determinations for event tickets, particularly when a donor wishes to separate the payment between personal funds and a donor-advised fund (DAF).

For example:
A donor would like to pay for their event tickets out of pocket and use their DAF to pay for the sponsorship portion. The face value of the ticket is $500, while the organization's internal cost per person for the event is approximately $125.

In this scenario, are you:

• Requiring the donor to pay the full stated ticket value ($500) personally and treating that as the FMV for purposes of DAF compliance and quid pro quo rules?
• Or are you allowing donors to pay only the internal cost personally and directing the remainder through the DAF?

How are you determining and documenting FMV in these cases?

Additionally, how are you handling donor pushback when they prefer to use DAF funds toward sponsorships that include event benefits?

Appreciate any insight into how others are approaching this from both a compliance and donor-relations perspective.

Hello! 

I'm interested in how other organizations handle fair market value (FMV) determinations for event tickets, particularly when a donor wishes to separate the payment between personal funds and a donor-advised fund (DAF).

For example:
A donor would like to pay for their event tickets out of pocket and use their DAF to pay for the sponsorship portion. The face value of the ticket is $500, while the organization's internal cost per person for the event is approximately $125.

In this scenario, are you:

• Requiring the donor to pay the full stated ticket value ($500) personally and treating that as the FMV for purposes of DAF compliance and quid pro quo rules?
• Or are you allowing donors to pay only the internal cost personally and directing the remainder through the DAF?

How are you determining and documenting FMV in these cases?

Additionally, how are you handling donor pushback when they prefer to use DAF funds toward sponsorships that include event benefits?

Appreciate any insight into how others are approaching this from both a compliance and donor-relations perspective.

Hello! 

I'm interested in how other organizations handle fair market value (FMV) determinations for event tickets, particularly when a donor wishes to separate the payment between personal funds and a donor-advised fund (DAF).

For example:
A donor would like to pay for their event tickets out of pocket and use their DAF to pay for the sponsorship portion. The face value of the ticket is $500, while the organization's internal cost per person for the event is approximately $125.

In this scenario, are you:

• Requiring the donor to pay the full stated ticket value ($500) personally and treating that as the FMV for purposes of DAF compliance and quid pro quo rules?
• Or are you allowing donors to pay only the internal cost personally and directing the remainder through the DAF?

How are you determining and documenting FMV in these cases?

Additionally, how are you handling donor pushback when they prefer to use DAF funds toward sponsorships that include event benefits?

Appreciate any insight into how others are approaching this from both a compliance and donor-relations perspective.