FundSvcs Community

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Yes, but we get the purchased 50 mugs price when we only purchase 10 mugs. Everyone else who purchases 10 mugs would pay more than we do.

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Yes, but we get the purchased 50 mugs price when we only purchase 10 mugs. Everyone else who purchases 10 mugs would pay more than we do.

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Yes, I would assume there would be no discount if we purchased the highest quantity. But that's never happened - the highest quantity available is always much greater than what we buy, and I don't anticipate we'd ever get anywhere near purchasing the highest quantity available.

Yes, but we get the purchased 50 mugs price when we only purchase 10 mugs. Everyone else who purchases 10 mugs would pay more than we do.

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Yes, I would assume there would be no discount if we purchased the highest quantity. But that's never happened - the highest quantity available is always much greater than what we buy, and I don't anticipate we'd ever get anywhere near purchasing the highest quantity available.

Yes, but we get the purchased 50 mugs price when we only purchase 10 mugs. Everyone else who purchases 10 mugs would pay more than we do.

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Ok, I see your point there. Does the fair market value change depending on the quantity you buy? They'd have to discount it even further than the lowest amount they would ever charge for it to be considered a bargain sale. Basically, they are still making a profit off these transactions, just not as much as they normally would. But there is no harm in recognizing the company for these discounts, sending a letter thanking them for the discount and then whatever they try to claim tax wise would be on them?

Yes, I would assume there would be no discount if we purchased the highest quantity. But that's never happened - the highest quantity available is always much greater than what we buy, and I don't anticipate we'd ever get anywhere near purchasing the highest quantity available.

Yes, but we get the purchased 50 mugs price when we only purchase 10 mugs. Everyone else who purchases 10 mugs would pay more than we do.

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Ok, I see your point there. Does the fair market value change depending on the quantity you buy? They'd have to discount it even further than the lowest amount they would ever charge for it to be considered a bargain sale. Basically, they are still making a profit off these transactions, just not as much as they normally would. But there is no harm in recognizing the company for these discounts, sending a letter thanking them for the discount and then whatever they try to claim tax wise would be on them?

Yes, I would assume there would be no discount if we purchased the highest quantity. But that's never happened - the highest quantity available is always much greater than what we buy, and I don't anticipate we'd ever get anywhere near purchasing the highest quantity available.

Yes, but we get the purchased 50 mugs price when we only purchase 10 mugs. Everyone else who purchases 10 mugs would pay more than we do.

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

Original Message:
Sent: 9/18/2024 10:15:00 AM
From: Tioga Anderson
Subject: Is this a Bargain Sale GIK?

Hello,

We have a vendor that many of our athletic programs use to buy promotional items - branded mugs, cups, golf balls, things of that nature. The athletic teams give these away at various events they run (golf tournaments, alumni games, etc.). 

The foundation pays for these items out of the general operating accounts we have for each sport. The vendor has started requesting a Gift in Kind for discounted pricing. According to the vendor website, the prices of each item vary depending on the quantity purchased. To use a made up example - if you purchase 10 mugs the price is $1 per mug, if you purchase 50 mugs, the price is .50 cents per mug. The vendor simply gives us the cheapest per unit unit price, regardless of the quantity we purchase and then notes the total discount on the invoice. The discounts is usually fairly substantial ($500+). 

Would this count as a bargain sale gift in kind, or does that only apply to real estate and things of that nature? Or would this be something we should just handle as "recognition" credit only. The owner of the company is an alum of our institution so I think we'd have to recognize the company in some way for these discounts no matter what.

Thanks for any input!

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Tioga Anderson
East Stroudsburg University Foundation
tanderson@esufoundation.org
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