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  • 1.  Bargain Sale? GIK? Something Else? Not a Gift?

    Posted 02-28-2023 03:08 PM

    All,

    We are building out an electronics lab, and a company is willing to give us 5 free pieces equipment (as a "gift") if we purchase 5 pieces of the same equipment. This is on top of their normal educational discount. They have given us significant outright equipment GIKs in the past, but this is the first time they're tying their "gift" to a purchase. My gut reaction is that this is really a bargain sale where we're essentially getting 10 pieces of equipment at 50% off. Am I thinking about this correctly?


    Thanks.

    Sean



    ------------------------------
    Sean Shappell
    Asst. Vice President, Information Services
    Lehigh University
    ses211@lehigh.edu
    ------------------------------


  • 2.  RE: Bargain Sale? GIK? Something Else? Not a Gift?

    Posted 02-28-2023 03:13 PM
    Maybe.

    I do not like the phrase, "we will give if you buy." That doesn't sound very voluntary.

    But, still, an argument can be made to record a donation in your CRM. However, I'd ask the company precisely how they are treating this. There can be a difference on their books between an outright equipment donation and a bargain sale.

    Could you ask the company to state exactly what they are calling this on their invoice - and then treat it the same way in your CRM?

    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






  • 3.  RE: Bargain Sale? GIK? Something Else? Not a Gift?

    Posted 02-28-2023 08:54 PM

    John,

    The requirement to buy is what threw me off too. That said, I suppose a more traditional bargain sale (e.g. "we'll sell it to you for $100 even though the normal education discount is $1,000") also requires buying in order to realize the "gift". Either way, I'll check in with the donor to see how they're thinking about it. Thanks as always.

    Sean



    ------------------------------
    Sean Shappell
    Asst. Vice President, Information Services
    Lehigh University
    ses211@lehigh.edu
    ------------------------------