FundSvcs Community

Hello.
Earlier this year we received a life insurance gift from a living donor that we initially did not record correctly. We recorded it as a cash gift erroneously. We then communicated with the donor clarifying that we did need a qualified appraisal in order for him to claim a charitable deduction within 90 days of the gift being made. We know it should be a Gift in Kind gift type.

We have not been successful in getting any response from the donor. What would you do if you had a life insurance gift from a living donor who did not follow through on a qualified appraisal? Would you issue a Gift in Kind Receipt with a $0 value? I know a gift receipt should not include a gift value.

How would you  record this within your system without an appraisal? Beyond the initial email from the gift officer indicating this was an error would you do any more to ensure the donor has total clarity that the original receipt is not valid?

Thanks for any suggestions!  

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Carly Eichhorst
Director of Advancement Operations and Strategy
St Olaf College
eichho1@stolaf.edu
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Original Message:
Sent: 5/25/2022 3:09:00 PM
From: Carly Eichhorst
Subject: Seeking Guidance on Life Insurance Gift

Hello.
Earlier this year we received a life insurance gift from a living donor that we initially did not record correctly. We recorded it as a cash gift erroneously. We then communicated with the donor clarifying that we did need a qualified appraisal in order for him to claim a charitable deduction within 90 days of the gift being made. We know it should be a Gift in Kind gift type.

We have not been successful in getting any response from the donor. What would you do if you had a life insurance gift from a living donor who did not follow through on a qualified appraisal? Would you issue a Gift in Kind Receipt with a $0 value? I know a gift receipt should not include a gift value.

How would you  record this within your system without an appraisal? Beyond the initial email from the gift officer indicating this was an error would you do any more to ensure the donor has total clarity that the original receipt is not valid?

Thanks for any suggestions!  

------------------------------
Carly Eichhorst
Director of Advancement Operations and Strategy
St Olaf College
eichho1@stolaf.edu
------------------------------

Original Message:
Sent: 5/25/2022 3:18:00 PM
From: John H. Taylor
Subject: RE: Seeking Guidance on Life Insurance Gift

You cannot demand an appraisal.  That is between the donor and the IRS.

As you are now the owner, contact the insurance company ask ask them to provide you with the standard IRS form reflecting value information.  I forget the form number.

You want the interpolated terminal reserve value (similar to the cash surrender value).  That is the amount you will record for counting purposes.

John

John H. Taylor 

919.816.5903 (Cell/Text)

Big Ideas; Small Keyboard

Original Message:
Sent: 5/25/2022 3:09:00 PM
From: Carly Eichhorst
Subject: Seeking Guidance on Life Insurance Gift

Hello.
Earlier this year we received a life insurance gift from a living donor that we initially did not record correctly. We recorded it as a cash gift erroneously. We then communicated with the donor clarifying that we did need a qualified appraisal in order for him to claim a charitable deduction within 90 days of the gift being made. We know it should be a Gift in Kind gift type.

We have not been successful in getting any response from the donor. What would you do if you had a life insurance gift from a living donor who did not follow through on a qualified appraisal? Would you issue a Gift in Kind Receipt with a $0 value? I know a gift receipt should not include a gift value.

How would you  record this within your system without an appraisal? Beyond the initial email from the gift officer indicating this was an error would you do any more to ensure the donor has total clarity that the original receipt is not valid?

Thanks for any suggestions!  

------------------------------
Carly Eichhorst
Director of Advancement Operations and Strategy
St Olaf College
eichho1@stolaf.edu
------------------------------