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  • 1.  President's Circle Membership Benefits Question

    Posted 04-05-2024 03:32 PM

    Happy Friday all!

    I'm working with one of our community college presidents to help her set up a President's Circle.  I received their proposed membership levels and benefits yesterday.  Most of it is insubstantial, but the one item I'm hung up on is a 10% discount card to the campus cafe. It's my understanding that I would have to consider what the FMV of that discount might be over the 1 yr membership term if the donor took full advantage of the benefit.  My question is how would I estimate that fairly? 

    My hope is to convince the president to drop this perk in favor of something less complicated, but I don't know how successful I'll be. I just want to have my ducks in a row before I bring this to her attention.

    As always, thanks for your input!  



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    Wendy Johnson
    Riverside Community College District Foundation
    wendy.johnson@rccd.edu
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  • 2.  RE: President's Circle Membership Benefits Question

    Posted 04-05-2024 03:52 PM
    I asked the IRS this very question many years ago. Fortunately, their response made the calculation so complex that the university dropped the benefit.

    The IRS suggested that in the first year or two, you estimate the value at 10% of the fee for becoming a member of the President's Club. Then, require the venue to track all of the discounts given to those members over the course of the year and divide the total by the number of eligible members. That becomes the value of the benefit the following year. Then, continue to follow the same valuation process every year thereafter.

    And, as a reminder, this sort of benefit cannot be given to anyone who makes a gift through a DAF or private foundation.

    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


  • 3.  RE: President's Circle Membership Benefits Question

    Posted 04-05-2024 04:15 PM
    Thank you, John! I think that explanation might just make that benefit go away! 



    Original Message


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