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Athletics Benefit

  • 1.  Athletics Benefit

    Posted 28 days ago
    Hi Folks,
    We're working closely with our Athletics partners on language for their FAQ page (ie. "Can I get a refund on my gift to athletics booster org if I'm not allowed to attend games in person?")  We're making good progress on that front and this process is also allowing us to focus some energy on re-evaluating the FMV of the benefits that Athletics is providing.
    I received a question from athletics development leadership about whether we can "institute our own 80/20 or maybe a 90/10 rule".
    The argument being that it would allow for much more efficient processing and clarity in communicating with our donors.

    For context - We have very minimal seating based on giving level issues and we do not charge for parking (though that may be on the table as we stare at crystal balls for the future of tax revenues to support higher ed. in NC.)
    I'd love the thoughts of the group. 
    Thanks!

    Ben


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    Benjamin Pendry
    Advancement Services
    Western Carolina University
    bjpendry@email.wcu.edu
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  • 2.  RE: Athletics Benefit

    Posted 28 days ago
    You cannot institute a rule that affects tax-deductibility that is different from the IRS.  And, of course, there no longer is an 80/20 rule - it's now the 0% deductible rule (when preferred seating is involved).

    From the IRS perspective, you must make a "good faith estimate" at determining the fair market value of benefits provided.  I do not see how you can come up with a percentage rule as that could not apply equitably.  Donors giving at different dollar amounts are eligible for the same benefits, yet you would penalize the donors who gave more.

    You really need to develop a shopping cart approach and calculate benefit values for everything and back those out of the gift.  Any departure from that would have to be blessed by your attorney and might require a Private Letter Ruling.

    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