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Stipend as Gift

  • 1.  Stipend as Gift

    Posted 17 days ago
    Hi all,

    We have two staff members who are members of a committee that the College gives them an additional stipend for.  They would like to forego this stipend as a gift to the College.  We are told by the business office that this will not be tax deductible.  The Advancement office would like them in our system as a pledge/for reporting purposes.

    Any advice on how to handle this request?  It is unusual.

    Thanks a bunch,


    ------------------------------
    Hannah Baskin
    Hartwick College
    gifts@hartwick.edu
    ------------------------------


  • 2.  RE: Stipend as Gift

    Posted 17 days ago
    To make the gift tax-deductible, the employees must first be paid the income.  Somehow it must be reflected in their W-2 or 1099.  Otherwise, this becomes a contribution of service which the IRS does not recognize as being deductible.

    While you might make a note in your CRM of this generosity, perhaps by assigning soft-credit only, you cannot count the corresponding value in fundraising totals per CASE.

    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






  • 3.  RE: Stipend as Gift

    Posted 17 days ago
    I just had this situation.  The employee will receive their stipend and then give us a check for the donation.  This allows for tax credit for the donor.

    Tina Gorski-Strong
    Chief Advancement Officer
    Bancroft School
    110 Shore Drive
    Worcester, MA 01605
    508.854.9201