FundSvcs Community

Expand all | Collapse all

Donor willing to make a cash gift if we purchase an auction item

  • 1.  Donor willing to make a cash gift if we purchase an auction item

    Posted 12 days ago
    Hi all,

    Our library was recently approached by an existing major gifts donor who is also a collector of rare and special edition books.  The donor is aware of a particular first edition book coming to auction (he is not the owner).  This is an item that would complement our collection.  Rather than the donor bidding on the item and donating it to the college (and incurring appraisal fees, etc.), he's suggested the possibility of the college directly bidding (up to a certain $) on the item.  If the college would win the auction, he would then make a cash gift for a corresponding amount and no gift if we don't.  Does anyone have experience with a similar situation?  Words of advice or warning?

    Thank you,
    Shannon

    ------------------------------
    Shannon Schulz
    Senior Director of Development Operations
    Carleton College
    sschulz@carleton.edu
    ------------------------------


  • 2.  RE: Donor willing to make a cash gift if we purchase an auction item

    Posted 12 days ago
    Sounds like a plan.

    The IRS concern in cases like this is whether a donor forces you to do something you would not otherwise in exchange for a gift.  However, it sounds to me like you would like to obtain this book.  So go for it!

    However, you also cannot afford to be left holding the bag.  You will want a nicely drafted gift agreement, approved by your attorney, to ensure that the donor lives up to their end of the deal.

    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: Donor willing to make a cash gift if we purchase an auction item

    Posted 12 days ago
    Thanks so much, John!