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  • 1.  Clarification Needed on Donor Credit and Tax Receipt – Donor A & Donor B

    Posted 05-28-2025 01:06 PM

    Hi all,

     

    I'm 99.99% sure of the answer here, but since this involves one of our largest donors, I want to make absolutely certain before responding.

     

    Donor A sent us a $50,000 check on behalf of Donor B, who works for him. Since the check was issued by Donor A directly to our organization, the hard credit and tax receipt were issued to Donor A, as per our standard practice.

     

    However, Donor B has now indicated that this $50,000 was his bonus, that he was taxed on it, and therefore believes he should receive the tax receipt.

     

    From what I understand, if the check came directly from Donor A's account, I don't see how Donor B could have been taxed on it. I don't believe we can legally issue a tax receipt to Donor B since the contribution did not come directly from him.

     

    Could you please confirm if my understanding is correct? I want to be sure before I relay this to our leadership team.

     

    Thank you so much for your guidance.

     

    Best regards,

    Tammy

     

    Tammy M. Cline

    Assistant Director, Gift Policy, Processing & Reporting

    West Point Association of Graduates

    698 Mills Road West Point, NY 10996

    Phone: 845.446.1540

    Fax: 845.377.3039

    WestPointAOG.org

     

    Serving West Point and the Long Gray Line

     

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  • 2.  RE: Clarification Needed on Donor Credit and Tax Receipt – Donor A & Donor B

    Posted 05-28-2025 01:33 PM
    You can issue a tax receipt to Donor B if Donor A was acting as Donor B's agent - just as you issue tax receipts to credit card donors, even though you get paid by the credit card company. But you would want written documentation from Donor A and Donor B to that effect. And if this is dealing with last year's taxes, and a deduction was already taken, this gets messier, and you'll want to get counsel involved to sort it out.


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

    Schedule a 30-minute consultation now:




    Original Message


  • 3.  RE: Clarification Needed on Donor Credit and Tax Receipt – Donor A & Donor B

    Posted 05-28-2025 01:47 PM
    I agree with your conclusion. If, however, the check was issued by Donor B's employer, I could be convinced that Donor A was acting as the legal agent - but I would also have checked with the CFO.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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