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  • 1.  PAC match program

    Posted 03-12-2024 05:57 PM

    Good afternoon everyone,

    We recently received a donation, which was made on behalf of one of our donors through their participation in a corporation's PAC match program. The letter accompanying the check states the following: "Please note that this contribution was funded with corporate treasury dollars. It was not funded by the Corporation X PAC. Federal law prohibits Corporation X, the Corporation X PAC, or the associate from taking this contribution as a charitable deduction for federal income tax purposes, or receiving any type of benefit for this contribution. "

    Are we correct that this should not be recorded as a charitable gift from Corporation X? Or, because this contribution was made with corporate treasury dollars, should we record as an outright, charitable gift from the Corporation?

    Thanks for any guidance you can provide! 



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    Missy Stump
    San Diego State University
    mstump@sdsu.edu
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  • 2.  RE: PAC match program

    Posted 03-12-2024 06:10 PM
    Donations made by or through PACs are not tax-deductible gifts. That much is affirmed in this note. I do not see how they think they can wash a PAC match gift by using a separate account to make it deductible.

    You should check with Counsel but I am inclined to accept the funds but not issue a tax receipt.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard