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  • 1.  Who can benefit from this fund scenario?

    Posted 05-18-2022 03:57 PM
    Hello - I would love your thoughts on this scenario. 

    • Memorial fund established for professional development for staff at university. 
    • 50% of the contributors are staff of the university. 
    • The fund steward suggests an application & selection committee of three to approve requests. 
      • Applicants may be contributors who have already (2021) received a tax deduction for the total amount.
      • A member of the selection committee may also be a contributor. 
    IRS pub. 526 says: If you receive or expect to receive a financial or economic benefit as a result of making a contribution to a qualified organization, you can't deduct the part of the contribution that represents the value of the benefit you receive.

    Most of the contributors were in 2021, so they would have received a tax benefit. Is this group precluded from applying and using this fund? I understand a contributor cannot be on the selection committee, but professional development does not appear to be an economical or financial benefit. 

    What am I not considering?  

    Many thanks, Tracy

    ------------------------------
    Tracy Forkin
    Director of Stewardship & Donor Engagement
    Johnson & Wales University
    tracy.forkin@jwu.edu
    ------------------------------


  • 2.  RE: Who can benefit from this fund scenario?

    Posted 05-18-2022 04:03 PM
    When you say applicants "may be" contributors you are just saying it is possible, right?  It is not that the fund is LIMITED to contributors.

    I would fix that language to make it clear that the entire current and future population were eligible.  Further, the PD must be job related and approved by the supervisor.

    But as with scholarships, donors to the fund should not be allowed on the selection committee.  The committee should be independent and better staffed by HR.

    With those criteria I think all is fine.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


  • 3.  RE: Who can benefit from this fund scenario?

    Posted 05-18-2022 04:07 PM

    When you say applicants "may be" contributors you are just saying it is possible, right?  It is not that the fund is LIMITED to contributors.

     

              Yes, it is very possible that a contributor could be an applicant. The fund is not limited to contributors.

     

    I would fix that language to make it clear that the entire current and future population were eligible.  Further, the PD must be job related and approved by the supervisor.

              Agree 100%

                       

    But as with scholarships, donors to the fund should not be allowed on the selection committee.  The committee should be independent and better staffed by HR.

                   Good recommendation!  Thank you!

     

    Best regards,

     

    Tracy

     




    Original Message


  • 4.  RE: Who can benefit from this fund scenario?

    Posted 05-18-2022 04:32 PM
    On the first point, I was wanting to make sure that "may be" didn't mean "must be."  If the latter, then there would be no gift.  But you clarified that!

    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


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