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  • 1.  Third Party MOU noting department-provided materials for a fundraiser

    Posted 17 days ago
    We have a third-party organization and a university department that have agreed that the organization will conduct a fundraiser using materials provided by the department and remit a portion of the proceeds to the department's fund at our foundation.
     • Are the proceeds considered a charitable contribution if there is a written agreement stating that materials will be provided and proceeds will be donated?
     • Does the absence of a written agreement affect whether the proceeds are charitable?  If the department donates the materials separately without an agreement for proceeds to be given?
    Here's the short version: When a third-party organization fundraises using university-provided materials and transfers the proceeds to the university department (at our foundation):
    • Are the proceeds considered charitable if the arrangement is set out in a written agreement?
    • Does the absence of a written agreement affect whether the proceeds are charitable?


    ------------------------------
    Amber R. Gichard
    University of Alaska Foundation
    argichard@alaska.edu
    ------------------------------


  • 2.  RE: Third Party MOU noting department-provided materials for a fundraiser

    Posted 17 days ago
    You have the foundation for a written agreement in the body of this email! I am not clear why the department hasn't put this relationship in writing, but you can. Have someone in the Foundation draft a short letter addressed to the department head and the outside organization, stating what you have stated here. Certain obligations of both parties have been established and should be codified.

    However, without that letter, I do not see why you couldn't deposit the funds and record the proceeds as a charitable donation. The lack of an agreement doesn't make the activity any less charitable. Page 276 of the CASE Standards mentions how to handle proceeds to benefit revenue.

    Meanwhile, as we discussed for thirty minutes yesterday during my workshop at the Meeting of the Minds Conference, you should develop a Third Party Fundraising Protocol for the Foundation/University. This document outlines the responsibilities of all parties involved in internal and external fundraising activities, including the submission of an application that must be signed (and then approved by the Advancement Office) by the event organizers before a third-party event can be conducted.

    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




    Original Message


  • 3.  RE: Third Party MOU noting department-provided materials for a fundraiser

    Posted 13 days ago
    Thanks, John.

    There is a memorandum of understanding between the department and the 3rd party organizer that states the department will provide goods and services (the space and materials to create the pottery being created by the 3rd party that is being sold), and the 3rd party will donate a percentage of the proceeds. Do the goods and services provided by the department affect the charitability of the donation of the proceeds?

    To me, this sounds more like a contract since the contribution isn't being made without goods or services provided in return...

    Thanks,
    Amber
    _______________________________________________

    AMBER R. GICHARD
    Senior Director of Fund & Gift Services
    University of Alaska Foundation
    1815 Bragaw St., Suite 206, Anchorage, AK, 99508
    Direct:     907.786.1016 
    Website:     alaska.edu/foundation
    Make a gift online:     engage.alaska.edu







    Original Message


  • 4.  RE: Third Party MOU noting department-provided materials for a fundraiser

    Posted 13 days ago
    I see no issues assuming the goods and services are exclusively to help them conduct what is essentially your proceeds-to-benefit event. You might consider counting only the proceeds net of your costs. But that's not common, as you would have incurred the same costs had you conducted the event.

    However, if the goods and services are unrelated to the event and fall into the "you give us stuff to keep, and we'll make a gift to you" category, I'd say it's an exchange transaction, and there is no gift.

    John

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard





    Original Message


  • 5.  RE: Third Party MOU noting department-provided materials for a fundraiser

    Posted 17 days ago
    A contract can provide evidence of a charitable transaction, but charitability is determined based on a contribution being made freely, with charitable intent, for charitable purposes (as defined in section 170a), without goods or services provided in return.


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

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