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  • 1.  Offer of free tickets

    Posted 02-25-2025 12:30 PM

    We are toying with the idea of offering show tickets to a group of donors at a free but invitation only stewarhip event. The tickets have a fmv of $200 each. These donors did not know anything about this offer they made their gift. Since there was no expectation of a quid pro quo, would this be a problem? Most of these donors would have made their donation the previous year so re-issuing a new receipt is not an option. It seems murkey, but I wanted to ask the group. 

    Thank you! 



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    Julie Cooper
    Swarthmore College
    jcooper3@swarthmore.edu
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  • 2.  RE: Offer of free tickets

    Posted 02-25-2025 01:04 PM
    The IRS does not care whether the donors expected the benefit. What they are concerned about is whether the benefit was given because of the donation. So, yes, a quid pro quo does exist in this case.

    Our Counsel at Duke required us to send letters (and possibly a 1099 if the benefit value exceeded $600) advising donors of the potential tax impact. We also reduced the gift on the system by the benefit amount.

    The IRS has also noted that calling something a stewardship event does not change the rules. If the donor is invited because they gave a gift at a certain level, then a QPQ exists.

    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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