While I'm unsure if there's any real risk of wrongdoing on your part, I would return the check, and kindly request a personal check for the silent auction item, and a new check from the family foundation for the donation amount only. I would explain that you trust the donor's intent to reimburse the family foundation, but for audit and tax purposes, and to align with what your knowledge of IRS and tax policies are, you would rather not accept a check from the family foundation for a silent auction purchase. I would imagine the family foundation likely (hopefully) has their own fiscal policies the donor would want to honor, so this approach is the most fiscally responsible and transparent for all parties.
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Michele Whitaker
Baton Rouge Community College Foundation
[
whitakerm@mybrcc.edu]
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Original Message:
Sent: 11-19-2024 02:45 PM
From: Gwen Donev
Subject: Family Foundation responsibility
We recently had a donor attend an event and write a check from their foundation to cover both an outright gift, as well as a golf outing package that was a silent auction item. When I explained that he can't use the foundation to purchase an item he receives a benefit for, the donor responded that he's aware of that which is why he is going to reimburse the family foundation for the amount of the golf package.
Must we return the uncashed check to the donor in its entirety, because of the portion that he wanted to be used to pay for the silent auction item?
Or can we accept this check from the foundation, applying the charitable gift portion and making the payment for the silent auction item, based on the donor's declaration that he's aware of the tax law and that he is going to repay the foundation?
I guess I'm a little unsure on whom (the non-profit or the donor) the obligation falls.
Thanks!