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  • 1.  quid pro quo/exchange transaction or contribution?

    Posted 06-07-2024 10:03 AM

    Researching:  If a company makes a gift with a portion of revenue it received from a product they make which came from a product that was donated to them and then sold....would this be considered a contribution or an exchange transaction/quid pro quo?  How would the contribution amount (if any) be quantified?

    Thanks!



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    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
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  • 2.  RE: quid pro quo/exchange transaction or contribution?

    Posted 06-07-2024 10:12 AM
    Certainly this is a gift! Unless, however, you donated the product and contractually obligated the company to share their revenue with you.

    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: quid pro quo/exchange transaction or contribution?

    Posted 06-07-2024 10:20 AM

    How does it change if we did donate the product and there is a set payment/donation in return?  Is any portion considered a donation in that scenario?



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------



  • 4.  RE: quid pro quo/exchange transaction or contribution?

    Posted 06-07-2024 10:23 AM
    Nope. It's a contractual obligation - an exchange transaction. "You give us X if we give you Y" violates the IRS requirement for contributions being voluntary.

    CASE actually dealt with the topic a number of years ago. They call these arrangements "corporate partnerships." You would not be getting the cash if you didn't give the company something in exchange. There is no countable, or deductible, gift.

    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







  • 5.  RE: quid pro quo/exchange transaction or contribution?

    Posted 06-07-2024 12:59 PM

    Thanks for the information...very helpful!



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------