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  • 1.  Course sales and QPQ

    Posted 12-18-2023 12:06 PM
    Our client, a nonprofit organization in the informal education space, offers online classes for purchase. Tuition for these classes is offered at three prices: full tuition, and two reduced rates. There is no qualification process for the reduced rate, the user simply uses a coupon code that's provided on the product page itself. The website says "we encourage you to pay at the highest level you can, which will enable more students to participate."

    These payments are not coded as a donation, they are not given a tax receipt, and the revenue is not counted as UBIT.

    We are currently getting some advice from the auditors that those paying the full tuition amount are in effect making a QPQ donation and need to be receipted and tracked as such. Do you agree with this analysis? We are very much trying not to view these payments as donations, as they are operationally challenging to deal with, and they don't reflect a propensity among full-tuition payers to make other contributions. 


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

    Schedule a 30-minute consultation now:


  • 2.  RE: Course sales and QPQ

    Posted 12-18-2023 12:14 PM
    I do not see a donation here. They have set up a FMV which some are paying. The fact that others can take actions that reduce their payment is not relevant.

    Now, if they offered ONLY the reduced rate but encouraged donations above that amount, the difference would be a gift.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


  • 3.  RE: Course sales and QPQ

    Posted 12-18-2023 12:41 PM

    Or if someone used the coupon, paid the reduced rate, and then, separately, made a charitable contribution?

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

    Alan

     

    Alan S. Hejnal (he/him)

    Data Quality Manager

     

    SNAGHTML5cbfa34

     




    Original Message


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