This was very helpful! The amount is minimal ($5) for the fee and there is an option to pick up, so we are not going to include it. Thank you for the feedback on this!
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Colleen Deal
Appalachian State University
dealcf@appstate.edu------------------------------
Original Message:
Sent: 10-29-2025 04:54 PM
From: John Taylor
Subject: Postage Fee as Premium
I have not seen the IRS come right out and say whether those costs should be included. What the IRS does state is that the FMV is what a willing buyer would pay a willing seller. It stands to reason that when you "buy" something you are expected to pay for shipping (unless you are an Amazon Prime member ��).
I have known organizations to "build" shipping costs into the benefit value without itemizing them. I have also known organizations that haven't worried about those costs.
From a John Taylor perspective, if the shipping costs are substantial, I would add them to the value of the benefit if it is necessary to deliver the benefit (some donors may opt to pick it up).
If the cost is nominal (insubstantial, to use IRS lingo), I would not.
Ultimately, this question should be asked of and answered by Counsel.
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:
Sent: 10/29/2025 5:31:00 PM
From: Colleen Deal
Subject: Postage Fee as Premium
We are doing an initiatve for alumni to get a block set for a donation. We have the amount of the item as the premium amount on the donation, but there will be a shipping fee as well. Since the foundation will need to make the payment for the shipping fee, should that count as part of the premium amount for the donor?
Thank you in advance!
Colleen
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Colleen Deal
Appalachian State University
dealcf@appstate.edu
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