FundSvcs Community

 View Only
  • 1.  How to value donor perks

    Posted 11-20-2024 10:47 AM

    Our Athletics department and Athletics development officers have set up a donor "club" to reward donors of giving levels of $25 up to $100K with benefits that they describe as "exclusive engagement opportunities". My team has gone through the chart to determine the maximum value of the benefits for each level, which range from $0.50 to $125 and we've identified some obvious problems with some of the options. However, we are having difficulty putting a value to "exclusive engagement opportunities" such as access to gameday parking opportunities (the donors still have to pay for parking), invitations to special events, select ticket pre-sale access, pre-game sideline access, access to a post-game press conference, etc. Not knowing any better, our partners in development have listed all of these benefits at zero value, since they do not cost the university anything. I know, however, that it's the value of the access that counts, rather than the direct cost to UNH.

     

    So, my question is: how do others value access to perks like parking and ticket pre-sales, and to engagement opportunities like special events, press conferences, sideline access, etc.?

     

    This is definitely a situation where I'll need some community back-up in order to make any changes.

     

    Thank you,

    Laura

     

    Laura Martin '98G

    Director of Stewardship and Gift Compliance

    University of New Hampshire

    laura.martin@unh.edu



  • 2.  RE: How to value donor perks

    Posted 11-20-2024 10:59 AM
    Well, if these donors have special access to any athletic tickets (pre-sales), the entire payment is negated per the IRS.

    For many of the other "event-like" opportunities, you must make a "good faith effort" to calculate the fair market value. You must do so assuming that the donor will attend every event unless they opt out upfront.

    There is no magic formula you can use. You are correct that it doesn't matter how much (or not) some of the perks cost the institution. You must still come up with an estimated value.

    If you don't know the number and type of events these donors will be invited to, you can make a "good faith estimate" based on prior year activities.

    See the good faith estimate reference here:


    And here:


    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






  • 3.  RE: How to value donor perks

    Posted 11-20-2024 01:29 PM

    Thank you, John! This is very helpful.

     

    -Laura

     

    Laura Martin '98G

    Director of Stewardship and Gift Compliance

    University of New Hampshire

    laura.martin@unh.edu