FundSvcs Community

Hello everyone,

We have a faculty member who has a side business of providing free rides at public events on a pedicab to people in exchange for the riders then doing surprise acts of kindness for others. The business makes money (aka breaks even) by collecting sponsorships for $120/day.

The faculty member provided rides for several alumni events and a few summer events and would like us to count both the service of providing the rides and the free advertising that he put on the Pedicabs (full vehicle wraps) as gifts-in-kind. We are fairly confident that the service of providing the rides cannot be counted as a gift-in-kind-both from responses we've read here and because of the language about services in the IRS publication 526. We're not quite as sure about the advertising, however. I did find a reference in one of the community's library documents regarding advertising space not being a gift that says that,

It is the position of the Internal Revenue Service that a newspaper which gratuitously publishes advertisements for charitable organizations is not donating property but is merely rendering a service. It is held that this does not constitute a contribution or gift within the meaning of section 170 of the Code. Accordingly, the fair market value of the space does not qualify as an allowable deduction.

This leads me to believe that the free advertising is not a gift-in-kind, either, but I would appreciate confirmation (or contradiction, if I am incorrect.)

Thank you,

Laura

Laura Martin '98G

(she/her)

Director of Stewardship and Gift Compliance

Advancement

University of New Hampshire

9 Edgewood Road, Durham, NH 03824

unh.edu

Hello everyone,

We have a faculty member who has a side business of providing free rides at public events on a pedicab to people in exchange for the riders then doing surprise acts of kindness for others. The business makes money (aka breaks even) by collecting sponsorships for $120/day.

The faculty member provided rides for several alumni events and a few summer events and would like us to count both the service of providing the rides and the free advertising that he put on the Pedicabs (full vehicle wraps) as gifts-in-kind. We are fairly confident that the service of providing the rides cannot be counted as a gift-in-kind-both from responses we've read here and because of the language about services in the IRS publication 526. We're not quite as sure about the advertising, however. I did find a reference in one of the community's library documents regarding advertising space not being a gift that says that,

It is the position of the Internal Revenue Service that a newspaper which gratuitously publishes advertisements for charitable organizations is not donating property but is merely rendering a service. It is held that this does not constitute a contribution or gift within the meaning of section 170 of the Code. Accordingly, the fair market value of the space does not qualify as an allowable deduction.

This leads me to believe that the free advertising is not a gift-in-kind, either, but I would appreciate confirmation (or contradiction, if I am incorrect.)

Thank you,

Laura

Laura Martin '98G

(she/her)

Director of Stewardship and Gift Compliance

Advancement

University of New Hampshire

9 Edgewood Road, Durham, NH 03824

unh.edu

Hello everyone,

We have a faculty member who has a side business of providing free rides at public events on a pedicab to people in exchange for the riders then doing surprise acts of kindness for others. The business makes money (aka breaks even) by collecting sponsorships for $120/day.

The faculty member provided rides for several alumni events and a few summer events and would like us to count both the service of providing the rides and the free advertising that he put on the Pedicabs (full vehicle wraps) as gifts-in-kind. We are fairly confident that the service of providing the rides cannot be counted as a gift-in-kind-both from responses we've read here and because of the language about services in the IRS publication 526. We're not quite as sure about the advertising, however. I did find a reference in one of the community's library documents regarding advertising space not being a gift that says that,

It is the position of the Internal Revenue Service that a newspaper which gratuitously publishes advertisements for charitable organizations is not donating property but is merely rendering a service. It is held that this does not constitute a contribution or gift within the meaning of section 170 of the Code. Accordingly, the fair market value of the space does not qualify as an allowable deduction.

This leads me to believe that the free advertising is not a gift-in-kind, either, but I would appreciate confirmation (or contradiction, if I am incorrect.)

Thank you,

Laura

Laura Martin '98G

(she/her)

Director of Stewardship and Gift Compliance

Advancement

University of New Hampshire

9 Edgewood Road, Durham, NH 03824

unh.edu

Hello everyone,

We have a faculty member who has a side business of providing free rides at public events on a pedicab to people in exchange for the riders then doing surprise acts of kindness for others. The business makes money (aka breaks even) by collecting sponsorships for $120/day.

The faculty member provided rides for several alumni events and a few summer events and would like us to count both the service of providing the rides and the free advertising that he put on the Pedicabs (full vehicle wraps) as gifts-in-kind. We are fairly confident that the service of providing the rides cannot be counted as a gift-in-kind-both from responses we've read here and because of the language about services in the IRS publication 526. We're not quite as sure about the advertising, however. I did find a reference in one of the community's library documents regarding advertising space not being a gift that says that,

It is the position of the Internal Revenue Service that a newspaper which gratuitously publishes advertisements for charitable organizations is not donating property but is merely rendering a service. It is held that this does not constitute a contribution or gift within the meaning of section 170 of the Code. Accordingly, the fair market value of the space does not qualify as an allowable deduction.

This leads me to believe that the free advertising is not a gift-in-kind, either, but I would appreciate confirmation (or contradiction, if I am incorrect.)

Thank you,

Laura

Laura Martin '98G

(she/her)

Director of Stewardship and Gift Compliance

Advancement

University of New Hampshire

9 Edgewood Road, Durham, NH 03824

unh.edu