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  • 1.  GIK-Discounted Pricing

    Posted 5 hours ago

    Hello,

    We have potential donor wanting to provide equipment and consumables to our school over four years.  We are separate entity and accepting on behalf of the school as we are the supporting 501c3 organization.  The donated items will vary year to year.  They are using FMV as there would be no guarantee as to a discount.  CASE states that if educational discount is offered then that is what should be counted by recipient (is this only if an agreement/contract exists for discounted rates?).  How would one go about booking multi-year pledge for equipment/consumables based on discounted value when "possible" discount price is not known?  Thanks.



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    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
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  • 2.  RE: GIK-Discounted Pricing

    Posted 5 hours ago
    The CASE concern is that if a vendor automatically gives nonprofits or educational organizations a discount (usually a percentage), that's not a countable gift. Anything beyond that is considered a "bargain sale" as discussed in IRS Publication 526.

    The key to recognizing a gift is that the vendor must clearly indicate they are making a voluntary donation by marking "bargain sale" or "less charitable donation" on the invoice, and stating the amount.

    You can't book a pledge without knowing what the donor will give. Therefore, in a situation like this, I'd record the donations as they come in and not worry about a pledge.

    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


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