FundSvcs Community

 View Only

  • 1.  Gift (?) of reducation of expenses

    Posted 10-20-2025 10:16 AM
    I'm seeking guidance on gift entry and acknowledgement for a discount granted by a vendor. We recently held an event at a local winery. When the final invoice arrived, we learned the owners deducted $100 from our total and discounted two additional line items (wine and charcuterie) from the bill at the full value they had charged us. So they charged us $150 for charcuterie, and the invoice shows they have subtracted that same amount from the final bill. They subtracted another $95 for wine. I'm not clear on whether there is truly a gift/donation here.
    So I'm coming to the experts. What am I looking at? Does this constitute a $100 cash gift and two gifts-in-kind? or is it all deductible at full value? I want to enter and acknowledge their donations correctly, but this is a new one for me. Thanks in advance!


    ------------------------------
    Sandi Lehky
    North Central Michigan College Foundation
    slehky@ncmich.edu
    ------------------------------


  • 2.  RE: Gift (?) of reducation of expenses

    Posted 10-20-2025 02:01 PM
    I am not sure where I see the cash gift.

    However, if they charged you less than fair market value for merchandise you paid for (food and wine in this instance), that would constitute a form of bargain sale in my mind. As discussed in IRS Publication 526, then, the difference between the FMV and the amount billed would be a recognizeable gift in kind.

    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




    Original Message


  • 3.  RE: Gift (?) of reducation of expenses

    Posted 10-20-2025 03:21 PM
    I don't think this would be a bargain sale, I think it would be a donation of inventory, and the basis for their deduction would be cost, not FMV. An exception to bargain sale rules is when you're selling property that you ordinarily sell as part of your business, which seems to apply here. 

    Alternatively, it is simply a good-will discount, and not a charitable contribution of the kind you would record in your fundraising database. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 4.  RE: Gift (?) of reducation of expenses

    Posted 10-20-2025 03:38 PM
    Thanks for the good info.

    Even if a gift of inventory, which impacts the deduction value, CASE allows us to count the gift based on the FMV. Much like we can use the appraised value for a work of art donated to us by the artist, the deductible amount is not relevant, in these cases, to the value to our organizations.

    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





    Original Message


Related Content