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  • 1.  Tax Deductible Amount for Donor

    Posted 10-11-2022 02:49 PM
    Our Senior Class gift committee wants to know if there is a way for seniors to raise a certain amount of money so they can unlock T-shirts for the entire class. 

    My questions are:

    1. For those who make a gift and receive a T-Shirt they will still need a receipt that show the value of the T-shirt they     received correct?
    2. Does it matter that some of the class will not be making a gift and still receive a T-shirt?

    Thanks
    Liz

    ------------------------------
    Liz Arizpe
    Director of Advancement Services
    Valparaiso University
    liz.arizpe@valpo.edu
    ------------------------------


  • 2.  RE: Tax Deductible Amount for Donor

    Posted 10-11-2022 02:54 PM
    If you give every class member a shirt regardless of whether they gave, then you do not have a QPQ scenario.  However, you state that some of the class will not be making a gift to get a shirt.  It must be all of the class.

    If you do not make this free for everyone, you have a QPQ situation.  The only way to bypass that is to require a minimum gift of $58.50 and keep the shirt's value below $11.70 - ensuring the shirt has your school name or logo on it.

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Tax Deductible Amount for Donor

    Posted 10-11-2022 04:01 PM
    John,

    What happens if the t-shirt does not have the school name or logo on it? Just curious.

    Liz




    Original Message


  • 4.  RE: Tax Deductible Amount for Donor

    Posted 10-11-2022 04:13 PM
    It does not qualify for the IRS exemption and the full value must be substracted from the gift amount - no matter the size of gift.  

    However, at higher gift levels the shirt could qualify for the 2% exemption (if the shirt's value is less than 2% of the amount given, then you do not have to disclose the benefit).

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


  • 5.  RE: Tax Deductible Amount for Donor

    Posted 10-11-2022 03:20 PM
    Oops.  I did not include a final section!

    Those dollar limits I mentioned ($58.50 & $11.70) are the minimums for "insubstantial benefit" rules in the current calendar year.  Next year, those will be adjusted for inflation.  We will probably learn the new limits for 2023 in the coming weeks.

    Anyway, the IRS permits giving these "token" benefits without needing to discount the gift.  However, as I noted, for gifts to qualify, the donor must donate at least $58.50, and the value of the benefits cannot exceed $11.70 - plus those benefits must include the institution's name or logo.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987


    On Tue, Oct 11, 2022 at 3:53 PM John Taylor <johntaylorconsulting@gmail.com> wrote:
    If you give every class member a shirt regardless of whether they gave, then you do not have a QPQ scenario.  However, you state that some of the class will not be making a gift to get a shirt.  It must be all of the class.

    If you do not make this free for everyone, you have a QPQ situation.  The only way to bypass that is to require a minimum gift of $58.50 and keep the shirt's value below $11.70 - ensuring the shirt has your school name or logo on it.

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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