FundSvcs Community

 View Only

  • 1.  Valuing sponsorship benefits after gift is made, but before event/conference

    Posted 09-21-2023 07:01 PM
    We have a department running a conference with sponsorships that include tickets and exhibit booths at the conference.
    Because they are waiting to see how many sponsors they get, they want to wait to determine the value of those benefits a few months before the conference (yet they are asking for sponsorships now, and one check just arrived). They want to notify sponsors that "These benefits will have a value which will be set by XX date. Please reference future mailings from us when claiming a deduction for this transaction." instead of including that detail up front, which means receipts would have to be adjusted and reissued as well (our office has a policy of receipting all transactions upon deposit of the gift, not just at year-end). Additionally, many of these sponsorships will come in in 2024 when the conference is set for.
    I thought I recalled that values of benefits must be presented upfront (and where would I find that in IRS regs to prove this to them)?
    Thanks,
    Amber


    AMBER R. GICHARD

    Director of Fund & Gift Services

    University of Alaska Foundation

    1815 Bragaw St., Suite 206, Anchorage, AK, 99508

    Voicemail: 907.786.1016

    Join us for Alaska: universityforalaska.com

    Make a gift online: engage.alaska.edu



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


  • 2.  RE: Valuing sponsorship benefits after gift is made, but before event/conference

    Posted 09-21-2023 07:25 PM
    Values do not have to be mentioned upfront. However, that is the "donor relations" thing to do.

    You should hold off issuing any receipts until benefit values are known. Although I don't see how you can set different sponsorship levels without knowing what the sponsors will get - how can they decide what to sponsor?

    Anyway, could you hold off issuing ANY receipt until values are known - but tell the sponsors now that they will receive a receipt at the end of the year? However, for planning purposes, you should give them an estimate.

    On the 2024 sponsorships, are you saying you will be taking money now but won't know about benefits until then? That seems strange to me. Even so, hopefully, by December, you will know and can issue a receipt then.

    In the end, the IRS requires you to make a "good faith estimate" as to the value of benefits to be given. Do your best and put that on a receipt!

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Valuing sponsorship benefits after gift is made, but before event/conference

    Posted 09-22-2023 03:28 PM
    Thanks John and Emily,

    The event coordinators know how much of each benefit each level sponsorship will receive, but they haven't yet landed on the values of those specific benefits as they are finalizing the conference's offerings. 

    I'll definitely be asking them to have those values before CYE so we don't have to get into that mess!

    Thanks,
    Amber


    AMBER R. GICHARD

    Director of Fund & Gift Services

    University of Alaska Foundation

    1815 Bragaw St., Suite 206, Anchorage, AK, 99508

    Voicemail: 907.786.1016

    Join us for Alaska: universityforalaska.com

    Make a gift online: engage.alaska.edu


    UA Employees: Please request fund balances, reports, lists, and receipts requests through the Foundation's Information Request Google Form. (You must be logged into your UA Google account.)






    Original Message


  • 4.  RE: Valuing sponsorship benefits after gift is made, but before event/conference

    Posted 09-22-2023 08:40 AM
      |   view attached

    I highly recommend your team determines benefits ahead of the sales of sponsorships if at all possible.  In 2022, I was involved in my first Gala with our org. We set up sponsorship options with benefits, but donors kept asking for specialty sponsorships, which was a nightmare. It made calculating benefits a moving target and we had to re-do our sponsorship handout several times. For this year's gala, we had a special meeting very early on to discuss lessons learned from 2022's gala and set up a comprehensive sponsorship plan with benefits. It's working so much nicer this year. And will make gift entry & sponsorship acknowledgement letters simple and clean.  I also found a really handy chart to summarize benefits and it's a nice quick reference for us to use. See the attached.  The original version had hotel expenses included as well. We don't have that as part of our packages.  Hope this helps. 



    ------------------------------
    Emily Savino
    San Jacinto College Foundation
    emily.savino@sjcd.edu
    ------------------------------

    Attachment(s)

    xlsx
    Hollywood Nights - Goods & Services Chart.xlsx   14 KB 1 version
    Original Message


Related Content