FundSvcs Community

 View Only
  • 1.  Third-Party Events-Receipting

    Posted 03-15-2024 09:23 AM

    For third party events with no involvement from our organization:

    1. If checks are made payable to our organization, can we issue tax receipts?  If so, how do we manage any Quid Pro Quo receipting?
    2. If lump sum check is sent from third-party fundraiser, does that org/individual receive a tax receipt for the full amount from our organization?  If so, what if goods/services were provided to attendees?

    Thank you!



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------


  • 2.  RE: Third-Party Events-Receipting

    Posted 03-15-2024 09:32 AM
    You cannot issue receipts if the gifts were not your doing. Talk to Counsel about retroactively certifying the third-party as an agent. But they have already violated trademark and use of likeness rules. Instead, they should be issued a cease and desist letter.

    As for recording the gifts, your best bet is to enter them into a "Various Donors" record and not issue any receipts.

    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






  • 3.  RE: Third-Party Events-Receipting

    Posted 03-15-2024 09:43 AM

    Thanks, John.  I'm a little confused.  The third-party is not acting as our agent.  They are hosting a third-party event and have completed our third-party application form.  I'm just wondering about receipting.  To my knowledge, the event will be a dinner so would be (QPQ).  If the donors attending write checks payable directly to us are we able to issue tax receipts (providing we know value of dinner)?

    If donors write checks directly to the third-party and they send lump sum check to us, do we receipt him?  I wouldn't think so since he was not the sole donor and goods/services were part of the donation amount.

    Thanks again.



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------



  • 4.  RE: Third-Party Events-Receipting

    Posted 03-15-2024 10:06 AM
    Because that bit of detail was not provided, I jumped to the conclusion that you were talking about a rouge group that did its own thing.

    So you are saying the third-party conducted the event with your blessing-essentially meaning they WERE acting as your agent (you authorized the event). In this case, receipting, including QPQ (you MUST require the third party to provide you with all details-also ensuring that donors do not use DAFs or private foundations to pay), would be handled as normal.

    Participants/donors should be instructed to issue checks to you only, NOT the third party. If they issue a check to the third-party, the third-party should return the check and ask for one payable to you.

    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







  • 5.  RE: Third-Party Events-Receipting

    Posted 03-15-2024 10:11 AM
    In the future, another option would be for the external third party to conduct the event as a "proceeds to benefit" event. No tax-deduction would be promised and any funds collected - after expenses - would be entered as a lump sum on that Various Donors record I mentioned earlier.

    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