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  • 1.  paying benefits to attend event

    Posted 03-03-2025 01:07 PM

    We are working to rein in expectations of constituents who donate gifts-in-kind or gifts of service in support of events, particularly a gala. In the past, such donors were treated as sponsors and afforded full benefits even though there was no cash gift. We want to separate sponsorships from non-cash donations, preferably getting a cash sponsorship at a charitable level and a bill for the actual expenses. We expect some donors to want to continue with the GIK or service with a willingness to pay to attend, but perhaps not at a sponsorship or even ticket level. We've been asked if the donors could instead pay just the cost of the benefits. We understand that this is not acceptable in other contexts, for example when a DAF donor tries to bifurcate event support. But would it be acceptable for donors of GIK or services?



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    Mary Ann Coyle
    Childrens' Hospital Foundation of Richmond
    macoyle@chfrichmond.org
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  • 2.  RE: paying benefits to attend event

    Posted 03-03-2025 01:51 PM
    It depends on the nature of the donation.

    Servers, as you have mentioned, are not tax-deductible or countable donations. I guess you can give them whatever you want in exchange. But as they will not be receiving a receipt for their donation, there is no QPQ to worry about. Further, if the total value of the benefit exceeds $600, they will require a 1099.

    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