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Question about insubstantial Benefits

  • 1.  Question about insubstantial Benefits

    Posted 08-20-2021 11:59 AM
    Good  afternoon all,

    If we have a give away item that the FMV is $12.00 and a donor makes a gift over the $56.50, but under the $113. Do we still need to disclose the FMV on the receipt?

    Thanks
    Liz

    --
    Liz Arizpe
    Director of Advancement Services
    Valparaiso University
    Advancement
    1100 Campus Drive South
    Valparaiso, IN 46383
    (Phone) 219-464-5610



    The information contained in this communication is confidential and is intended only for use by the addressee(s).  Unauthorized review, use, disclosure or copying of this communication, or any part thereof, is strictly prohibited.  If you have received this communication in error, please notify us immediately by return email and destroy this communication and all copies thereof, including all attachments.


  • 2.  RE: Question about insubstantial Benefits

    Posted 08-20-2021 12:03 PM
    Yes - unless the give-away value is under $11.30 and has your name or logo, it must be disclosed.  However, these "low-cost" articles can have a wholesale value of $11.13, not a FMV.

    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: Question about insubstantial Benefits

    Posted 08-20-2021 12:19 PM
    Thank you. 








  • 4.  RE: Question about insubstantial Benefits

    Posted 08-20-2021 12:56 PM
    You are welcome!

    I should have also mentioned that the rule you referenced pertaining to 2% or $113 is based on whichever is less.  Meaning, for a gift of $500 you can provide a benefit worth $10 or less without disclosure.  For a $10,000 gift you may provide benefits valued at up to $113, as that is less than 2%.

    Do keep in mind that the benefit rules apply to the combined value of all benefits.  And that none of the more substantial benefits can be given to DAF or private foundation donors.  Those donors may only receive the aforementioned token benefits costing $13 or less (combined) and including your 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







  • 5.  RE: Question about insubstantial Benefits

    Posted 25 days ago
    I found this string from 2021 and I have a follow-up question for clarity. If the non-profit offers items based on level of donation on a giving page but the items have the organization's logo on them and are under $11.30 per item, does the organization have to disclose because receiving the item is based on level of donation or does it still qualify has insubstantial benefit?

    Thanks.

    Trish

    ------------------------------
    Trish Idarola
    University of New Mexico Foundation
    trish.idarola@unmfund.org
    ------------------------------



  • 6.  RE: Question about insubstantial Benefits

    Posted 25 days ago
    The values have changed for 2022.  But, yes.  As long as the gift amount exceeds $58.50, and the combined value of all token benefits given is under $11.70, and each token item contains the institution name or logo, no disclosure on the gift receipt is required.

    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







  • 7.  RE: Question about insubstantial Benefits

    Posted 25 days ago

    Thank you!