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  • 1.  Corporate Foundations and Events

    Posted 11-04-2022 10:22 AM

    Being back with in-person events after 2 years of being virtual with events, we are being bombarded with questions about the rules around Foundations and IRAs and benefits.

     

    Can the following be used to pay for tickets at an event? Any clarification would be helpful!

     

    ·         Family Foundation

    ·         Corporate Foundation

    ·         IRAs

     

    Thanks,

    Alayna

     

     

    Alayna Brinkley she/her/hers
    Director, Gift Services
    w: 617.355.8868 |  Boston Children's Hospital Trust

    Boston Children's Hospital

    Where the world comes for answers.

     



  • 2.  RE: Corporate Foundations and Events

    Posted 11-04-2022 10:28 AM
    Family foundations, no.

    Corporate foundations, ask

    QCDs, no.

    RMDs, yes.

    DAFs, no.

    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


  • 3.  RE: Corporate Foundations and Events

    Posted 11-04-2022 10:34 AM

    For the corporate foundation – when you say ask, what do you mean?  Ask if executives will be utilizing the tickets? Or ask our legal counsel?

     

    Alayna Brinkley she/her/hers
    Director, Gift Services
    w: 617.355.8868 |  Boston Children's Hospital Trust

    Boston Children's Hospital

    Where the world comes for answers.

     




    Original Message


  • 4.  RE: Corporate Foundations and Events

    Posted 11-04-2022 10:54 AM
    Ask the CFO of the foundation whether purchasing tickets is a permissible use.

    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





    Original Message


  • 5.  RE: Corporate Foundations and Events

    Posted 11-04-2022 10:57 AM
    By the way, the odds are against using their funds in this way.  However, some of these entities are set up as more of an administrative bank-like entity and are a "foundation" in name only.  That's why you should always ask first.

    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


  • 6.  RE: Corporate Foundations and Events

    Posted 11-04-2022 01:05 PM
    I would clarify that for a family foundation, where the general rule is "no", there is an exception if attendance at the event is necessary and proper for oversight and evaluation of the activities the foundation funds. If that's the case, the foundation should clarify that with you -- and in that case, the tickets have to be only for the person or people who are doing the oversight, no +1s allowed. This really shouldn't come up with a gala event, where it's unclear what oversight interest might be served, but may be more relevant for events like recitals, lectures, etc.

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

    Schedule a 30-minute consultation now:





    Original Message


  • 7.  RE: Corporate Foundations and Events

    Posted 11-08-2022 07:48 AM

    One more followup – How long has the rule about Corporate Foundations existed related to benefits and tickets?  Getting some push back from a front line fundraiser on this and wanted to know when it was determined that corporate foundations couldn't support sponsorships that have a ticket or benefit.

     

    Alayna Brinkley she/her/hers
    Director, Gift Services
    w: 617.355.8868 |  Boston Children's Hospital Trust

    Boston Children's Hospital

    Where the world comes for answers.

     




    Original Message


  • 8.  RE: Corporate Foundations and Events

    Posted 11-08-2022 08:24 AM
    As my earlier note mentioned, you must contact the foundation.  The rules regarding self-dealing only certain categories of - namely private foundations.  The IRS does not have a "corporate foundation" category - only public or private.  You can't tell for sure just by the name of the foundation.

    However, even if it is a public foundation, the foundation may have internal policies prohibiting the use of funds for personal benefit.  So, depending on who benefits from the payment could violate those rules.

    So, again, this is why I initially stated you must ask - in each case.  You cannot develop an internal rule.

    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





    Original Message


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