FundSvcs Community

Expand all | Collapse all

Local Business Sponsors Gift in Kind

  • 1.  Local Business Sponsors Gift in Kind

    Posted 27 days ago
    We have received a gift that I just want to run past the community for clarification. I am on two sides of the fence on this. In a nutshell:
    • A local business collected items from their customers for our non-profit (we learned of this after the fact).
    • The business entered each donor into a drawing for a prize donated by the business.
    • The business donated the collected items to our non-profit.
    Is a Gift In Kind appropriate for the business in this case?

    Thanks in advance!

    ------------------------------
    Jana Fross
    Operations and Data Coordinator
    HaysMed Foundation

    ------------------------------


  • 2.  RE: Local Business Sponsors Gift in Kind

    Posted 27 days ago
    I am not clear on who did what for whom.  However, unless the business was acting as your agent, the only GIK would be for those items the company donated to you.  And the business would be the legal donor.

    You do not, however, mention whether you can use the GIKs at all - or for related purposes.  That will impact how you receipt the business.

    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: Local Business Sponsors Gift in Kind

    Posted 27 days ago
    PS - Let's hope they did not act as your agent or "in your name."  Given the drawing component you described there likely are state gaming regulations that impact nonprofit organizations.

    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







  • 4.  RE: Local Business Sponsors Gift in Kind

    Posted 27 days ago
    Sorry, John .... in trying to make that simple, I made it complicated! The business was actually delivering items they collected from their customers. Had the customers brought the items directly to us, we would have receipted to them. However, they delivered them to the business and the business, in turn, donated them to us. The items are business related and would qualify for a GIK. We are now contemplating if the business should receive the GIK credit. I feel like the business was simply the "messenger", not the donor?

    ------------------------------
    Jana Fross
    Operations and Data Coordinator
    HaysMed Foundation
    jana.fross@haysmed.com
    ------------------------------



  • 5.  RE: Local Business Sponsors Gift in Kind

    Posted 27 days ago
    The business is the donor.  As the individuals were entered into a drawing in exchange for their donation they would never have been eligible for a tax receipt, period.

    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