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  • 1.  Acknowledging a non-gift GIK

    Posted 10-19-2023 02:44 PM

    For those gifts received that are counted in our CRM for GAAP reporting purposes, fundraiser credit, and donor recognition credit-- but under Publication 526 do not count as a GIK (ex: airline tickets from an airline or a gift certificate for a massage) is anyone sending out an alternative acknowledgment letter? Would something like this cover us in terms of clarifying we did not count this as a donation but still recognize that the item was received? Or is this a can of worms to send to a donating company?

    Thank you for donating [items received] on [date]. Thoughtful donors like you enhance the [school mascot] experience by providing students access to success through transformational experiences in and outside of the classroom.

    Under the guidance of IRS Publication 526, we have not qualified [items] as a charitable deduction, but we continue to be deeply thankful for your generosity and recognize your commitment to [school] through your contribution. We encourage you to work with your tax advisor to assess qualifications around charitable gift reporting of donated goods.

    If you have questions or need assistance, please contact our office at [phone] or [email].

    We appreciate your partnership as we chart our future and develop even more opportunities for undergraduate, graduate, and lifelong learners to discover their intellectual passions and grow into the leaders of tomorrow.



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    Jayme Fancher
    San Diego State University
    jfancher@sdsu.edu
    ------------------------------


  • 2.  RE: Acknowledging a non-gift GIK

    Posted 10-19-2023 10:11 PM
    Hi Jayme,

    Thanking donors for their support is always a good idea, whether that support is tax deductible or not. You don't want to mislead the donor, but you do not have an obligation to state whether a gift is or is not tax deductible, or to "qualify an item as a charitable donation" - or even to provide a receipt, in most cases.  As long as you omit the phrase "no goods or services were received in exchange for this gift" your letter can't be used to improperly claim a donation. That's maybe a very tight reading of your obligation and probably doesn't do well enough by your donors, at least not enough for me to feel good about recommending.  You can say, perhaps in the body or even in a  footer 'This letter is not a receipt for the purposes of claiming a tax deduction. Please consult your tax advisor regarding the deductibility of your gift.' For me, that direct language ensures that there is no confusion about the letter, without getting into the who/what/why 

    I've seen smaller organizations use language like "though the IRS may not credit you with a tax deduction for this contribution, we greatly appreciate your gift and celebrate its impact" which has a similar purpose and is a lot less formal. 


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

    Schedule a 30-minute consultation now:




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