Hi John,
Thanks so much for your response. I am led to believe that the trust has been established without any funds presently, but an individual donor will contribute funds and property to the trust periodically. Therefore, I would prepare to issue tax receipts for these additions to the trust corpus, in the name of the trust. Since I am a part of the supported organization, and since the trust is managed by us, it makes sense to me that the sender block of the tax receipt letter should be:
(from)
John Doe Trust
c/o The Art Institute of Chicago
[Art Institute's address]
(to)
Mr. John Doe
John Doe's address.
I still have a follow up question about the tax ID. We do provide the Art Institute's tax ID on all tax receipts. Would you recommend issuing tax receipts with the Trust's tax ID for gifts made to the trust? We will consult with legal, but I wonder if you can speak to how the trust's 509a3 status impacts the goods and services language?
I appreciate your distinction between receipting disbursements OR recording the corpus based on the agreement terms. I will have to consult our legal experts on if our donor does retain authority to change the beneficiaries. If so, I might have another follow up question about who we send those disbursement receipts to.
PS, we all enjoyed your annual IRS webinar very much yesterday, as always, thanks for all the helpful info!
Best,
Dania
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Dania Calandrino
Art Institute of Chicago
dcalan@artic.edu------------------------------
Original Message:
Sent: 01-15-2025 11:59 AM
From: John Taylor
Subject: Receipting gifts made to Type 1 Supporting Organization
Dania, per CASE standards (Wholly Charitable Trust Administered by Others), you should record a gift TODAY for the entire corpus of the trust. The donor has already received a deduction when they established the trust. So, no receipt is necessary.
Subsequent disbursements from the trust go directly to Finance for processing as income.
In the event the trust benefited multiple organizations irrevocably, you would book your pro-rata portion of the corpus.
Should additional contributions to the trust corpus be made, you would count those additions.
Only if the donor retains authority to change the beneficiaries would you not record anything today. In that case, you would receipt disbursements as they come in - and the receipt is issued (in that case) in the name of the trust.
John
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
2604 Sevier Street
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
Original Message:
Sent: 1/15/2025 12:52:00 PM
From: Dania Calandrino
Subject: Receipting gifts made to Type 1 Supporting Organization
Good Afternoon,
We are exploring entering a relationship with a "type 1 supporting organization," and I'm wondering if anyone here has experience to share regarding the issuing of tax receipts in these situations. In our case, the supporting organization is a trust, and is a separate 509a3. The trust has been established exclusively to support us, a 501c3, for exempt purposes. What are our responsibilities when it comes to recording/receipting when an individual donor contributes to the trust? I am specifically interested in details such as which tax ID appears in these tax receipts, and, who is the 'sender' of the tax receipt letter.
Thank you!
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Dania Calandrino
Art Institute of Chicago
dcalan@artic.edu
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