FundSvcs Community

Greetings All,

I know this topic has been discussed ad infinitum, and I feel like the insubstantial benefits rule is engraved on my heart, but in truth, I haven't had to apply it in a long time.  I'm in a situation now where I'm getting so much pushback from a colleague, that I'm starting to doubt myself.   My colleague would like to offer a medallion with the university name on it to students at graduation in return for a donation, and they asked me about the maximum cost the item could be to still be considered insubstantial.

The issue is with the 2% rule.   They would like to set the lowest donation level at  $20.24.   My understanding is that the 2% rule comes into play when the donation is below 62.50 (for 2023).   Again, my understanding is that the maximum value of the item can be no more than  2% of the donation, which in this case is  40 cents.   Her understanding is that the donation must exceed five times the cost of the benefit, so therefore the benefit can be $4 (4X5=20).   

Am I wrong?

My colleague has said to me that other schools are offering items that cost $4.   She may not realize that the schools are (hopefully) informing the donor of the value of the benefit.  I've offered her this option several times, which she has rejected - I feel that there must be some misunderstanding here that I need to get to the bottom of.

Thanks all for your help.  It's been a difficult conversation, and I need a reality check.

Marcy Serkin 
Associate Vice President, Advancement Operations| Institutional Advancement 
Desk: 215.926.2546| Mobile: 646.763.2811
marcy.serkin@temple.edu
giving.temple.edu  

Greetings All,

I know this topic has been discussed ad infinitum, and I feel like the insubstantial benefits rule is engraved on my heart, but in truth, I haven't had to apply it in a long time.  I'm in a situation now where I'm getting so much pushback from a colleague, that I'm starting to doubt myself.   My colleague would like to offer a medallion with the university name on it to students at graduation in return for a donation, and they asked me about the maximum cost the item could be to still be considered insubstantial.

The issue is with the 2% rule.   They would like to set the lowest donation level at  $20.24.   My understanding is that the 2% rule comes into play when the donation is below 62.50 (for 2023).   Again, my understanding is that the maximum value of the item can be no more than  2% of the donation, which in this case is  40 cents.   Her understanding is that the donation must exceed five times the cost of the benefit, so therefore the benefit can be $4 (4X5=20).   

Am I wrong?

My colleague has said to me that other schools are offering items that cost $4.   She may not realize that the schools are (hopefully) informing the donor of the value of the benefit.  I've offered her this option several times, which she has rejected - I feel that there must be some misunderstanding here that I need to get to the bottom of.

Thanks all for your help.  It's been a difficult conversation, and I need a reality check.

Marcy Serkin 
Associate Vice President, Advancement Operations| Institutional Advancement 
Desk: 215.926.2546| Mobile: 646.763.2811
marcy.serkin@temple.edu
giving.temple.edu  

Thank you for such a quick response!   You've put my mind at ease.  I suspect counsel may well be our next stop, unfortunately.

The "five times" rule was something my colleague found on this website:

https://www.501c3.org/kb/token-and-low-cost-gifts/

Thank you again,

Marcy

Greetings All,

I know this topic has been discussed ad infinitum, and I feel like the insubstantial benefits rule is engraved on my heart, but in truth, I haven't had to apply it in a long time.  I'm in a situation now where I'm getting so much pushback from a colleague, that I'm starting to doubt myself.   My colleague would like to offer a medallion with the university name on it to students at graduation in return for a donation, and they asked me about the maximum cost the item could be to still be considered insubstantial.

The issue is with the 2% rule.   They would like to set the lowest donation level at  $20.24.   My understanding is that the 2% rule comes into play when the donation is below 62.50 (for 2023).   Again, my understanding is that the maximum value of the item can be no more than  2% of the donation, which in this case is  40 cents.   Her understanding is that the donation must exceed five times the cost of the benefit, so therefore the benefit can be $4 (4X5=20).   

Am I wrong?

My colleague has said to me that other schools are offering items that cost $4.   She may not realize that the schools are (hopefully) informing the donor of the value of the benefit.  I've offered her this option several times, which she has rejected - I feel that there must be some misunderstanding here that I need to get to the bottom of.

Thanks all for your help.  It's been a difficult conversation, and I need a reality check.

Marcy Serkin 
Associate Vice President, Advancement Operations| Institutional Advancement 
Desk: 215.926.2546| Mobile: 646.763.2811
marcy.serkin@temple.edu
giving.temple.edu  

Thank you for such a quick response!   You've put my mind at ease.  I suspect counsel may well be our next stop, unfortunately.

The "five times" rule was something my colleague found on this website:

https://www.501c3.org/kb/token-and-low-cost-gifts/

Thank you again,

Marcy

Greetings All,

I know this topic has been discussed ad infinitum, and I feel like the insubstantial benefits rule is engraved on my heart, but in truth, I haven't had to apply it in a long time.  I'm in a situation now where I'm getting so much pushback from a colleague, that I'm starting to doubt myself.   My colleague would like to offer a medallion with the university name on it to students at graduation in return for a donation, and they asked me about the maximum cost the item could be to still be considered insubstantial.

The issue is with the 2% rule.   They would like to set the lowest donation level at  $20.24.   My understanding is that the 2% rule comes into play when the donation is below 62.50 (for 2023).   Again, my understanding is that the maximum value of the item can be no more than  2% of the donation, which in this case is  40 cents.   Her understanding is that the donation must exceed five times the cost of the benefit, so therefore the benefit can be $4 (4X5=20).   

Am I wrong?

My colleague has said to me that other schools are offering items that cost $4.   She may not realize that the schools are (hopefully) informing the donor of the value of the benefit.  I've offered her this option several times, which she has rejected - I feel that there must be some misunderstanding here that I need to get to the bottom of.

Thanks all for your help.  It's been a difficult conversation, and I need a reality check.

Marcy Serkin 
Associate Vice President, Advancement Operations| Institutional Advancement 
Desk: 215.926.2546| Mobile: 646.763.2811
marcy.serkin@temple.edu
giving.temple.edu  

Thank you for such a quick response!   You've put my mind at ease.  I suspect counsel may well be our next stop, unfortunately.

The "five times" rule was something my colleague found on this website:

https://www.501c3.org/kb/token-and-low-cost-gifts/

Thank you again,

Marcy

Greetings All,

I know this topic has been discussed ad infinitum, and I feel like the insubstantial benefits rule is engraved on my heart, but in truth, I haven't had to apply it in a long time.  I'm in a situation now where I'm getting so much pushback from a colleague, that I'm starting to doubt myself.   My colleague would like to offer a medallion with the university name on it to students at graduation in return for a donation, and they asked me about the maximum cost the item could be to still be considered insubstantial.

The issue is with the 2% rule.   They would like to set the lowest donation level at  $20.24.   My understanding is that the 2% rule comes into play when the donation is below 62.50 (for 2023).   Again, my understanding is that the maximum value of the item can be no more than  2% of the donation, which in this case is  40 cents.   Her understanding is that the donation must exceed five times the cost of the benefit, so therefore the benefit can be $4 (4X5=20).   

Am I wrong?

My colleague has said to me that other schools are offering items that cost $4.   She may not realize that the schools are (hopefully) informing the donor of the value of the benefit.  I've offered her this option several times, which she has rejected - I feel that there must be some misunderstanding here that I need to get to the bottom of.

Thanks all for your help.  It's been a difficult conversation, and I need a reality check.

Marcy Serkin 
Associate Vice President, Advancement Operations| Institutional Advancement 
Desk: 215.926.2546| Mobile: 646.763.2811
marcy.serkin@temple.edu
giving.temple.edu  

Thank you for such a quick response!   You've put my mind at ease.  I suspect counsel may well be our next stop, unfortunately.

The "five times" rule was something my colleague found on this website:

https://www.501c3.org/kb/token-and-low-cost-gifts/

Thank you again,

Marcy

Greetings All,

I know this topic has been discussed ad infinitum, and I feel like the insubstantial benefits rule is engraved on my heart, but in truth, I haven't had to apply it in a long time.  I'm in a situation now where I'm getting so much pushback from a colleague, that I'm starting to doubt myself.   My colleague would like to offer a medallion with the university name on it to students at graduation in return for a donation, and they asked me about the maximum cost the item could be to still be considered insubstantial.

The issue is with the 2% rule.   They would like to set the lowest donation level at  $20.24.   My understanding is that the 2% rule comes into play when the donation is below 62.50 (for 2023).   Again, my understanding is that the maximum value of the item can be no more than  2% of the donation, which in this case is  40 cents.   Her understanding is that the donation must exceed five times the cost of the benefit, so therefore the benefit can be $4 (4X5=20).   

Am I wrong?

My colleague has said to me that other schools are offering items that cost $4.   She may not realize that the schools are (hopefully) informing the donor of the value of the benefit.  I've offered her this option several times, which she has rejected - I feel that there must be some misunderstanding here that I need to get to the bottom of.

Thanks all for your help.  It's been a difficult conversation, and I need a reality check.

Marcy Serkin 
Associate Vice President, Advancement Operations| Institutional Advancement 
Desk: 215.926.2546| Mobile: 646.763.2811
marcy.serkin@temple.edu
giving.temple.edu