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  • 1.  Giving societies benefitsb

    Posted 11-22-2024 11:17 AM

    Hi and happy Friday! We are introducing new giving societies! The first level starts at $2,500 and includes exclusive benefits such as:

    • Invitations to signature events with opportunities to personally engage with Pratt Leadership
    • Personalized experiences tailored to your family's interests
    • Opportunities to connect with other Pratt families and their students

    Currently, gifts at this level are fully taxable. Do we need to determine the fair market value of benefits (like food or drinks at signature events) to calculate the non-taxable portion? Additionally, can donors participate in the giving society if part of their contribution comes from matching gifts or a family foundation? I assume no.

    Thanks,

    Marta



    ------------------------------
    Marta Kostrzewa
    Director of Finance for IA
    Pratt Institute
    mkostrze@pratt.edu
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  • 2.  RE: Giving societies benefitsb

    Posted 11-22-2024 11:24 AM
    Yes, you must determine the fair market value of all events - whether the donor attends or not (unless they opt-out in advance). And, the FMV is not solely based on the cost of meals and beverages. The IRS requirement for determining FMV is "what a willing buyer would pay a willing seller."

    And, you are correct that donors paying through a DAF or private foundation cannot receive any event invitations. Nor can they offer to pay the non-deductible value. That would be called bifurcation and is disallowed by the IRS.

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas - Small Keyboard



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