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  • 1.  recognition of "gift" of a coach not taking a salary

    Posted 10-12-2022 06:32 AM
    I want to confirm with this group or hear from anyone who has a coach (or other employee) not taking a salary. I believe there is no gift per the IRS unless the person takes the salary and then donates it back to the school. However, we can recognize the person/donor at the given level of the salary, plus whatever other contributions they may make. There is no "soft credit" or in kind or other way to code this in the database. Correct?

    Jeff Day P'20
    Director of Development
    The Haverford School
    484-571-7052 (mobile)


  • 2.  RE: recognition of "gift" of a coach not taking a salary

    Posted 10-12-2022 06:51 AM
    Your understanding is correct.  In order to make a deductible gift of salary, they must first accept the salary (as reflected on a W-2 or 1099).  Otherwise it is a contributed service which is not deductible per IRS Publication 526.

    However, you may certainly recognize the waiver through soft-credit or similar protocol.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


  • 3.  RE: recognition of "gift" of a coach not taking a salary

    Posted 10-12-2022 12:59 PM
    Jeff, your DB coding options for this type of gift are going to depend on the DB itself, but there is likely a way. It's a non-deductible contribution, but it is still a contribution, and one that gets recorded by finance on your books, too.

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:




    Original Message


  • 4.  RE: recognition of "gift" of a coach not taking a salary

    Posted 10-12-2022 01:24 PM
    Good afternoon, Jeff:

    FWIW - I concur with both John and Isaac in that there is almost always a way to recognize valuable contributed services. The Finance area of an organization might also want to book that value as an asset to the organization - particularly if it offsets revenue they otherwise would have been obligated to pay. 

    Something I learned as a byproduct of being in this business for a while is that "charitable" and "philanthropic" support is not always the same as being "tax deductible". As Isaac pointed out, there might be database constraints for how you recognize this value (if you choose to do so) but the most common approach I've experienced and heard in practice is to record as an in kind gift with whatever coding you can establish to distinguish tangible goods from services (and further between related and unrelated use - in this scenario it would most likely be related as I'm assuming you wouldn't be accepting coaches services if they weren't needed by your organization).

    Good luck and best regards,

    Amy

    Amy J. Phillips
    Director of Advancement Services, Gift Acceptance
    Division of University Advancement
    The Catholic University of America
    620 Michigan Avenue, B016 O'Connell Hall
    Washington, DC 20064
    Phone: 202-319-6919





    Original Message


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