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Company Credit Card/Personal Contribution

  • 1.  Company Credit Card/Personal Contribution

    Posted 3 days ago
    Hello all. We have a donor who wants to use their company credit card to pay for a table at our gala, but wants us to treat it as a personal contribution. They intend to personally reimburse the card rather than use company money. Does this violate any IRS regulations? Who should receive the hard credit in this situation?

    I appreciate your help!

    ------------------------------
    Allison Bellot Williams
    Assistant Director, Development Services
    Lincoln Park Zoo
    abellot@lpzoo.org
    ------------------------------


  • 2.  RE: Company Credit Card/Personal Contribution

    Posted 3 days ago
    They cannot legally do this.  You must issue a receipt to owner of the accout.  This donor should use their personal card or write you a check.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 3.  RE: Company Credit Card/Personal Contribution

    Posted 3 days ago

    Not quite sure why your donor would want to use their company card, but I seem to recall that there are some corporate cards where the company is liable for the charge and some corporate cards where the individual is liable for the charge (and must apply to the company for reimbursement for charges that are company expenses).  A credit charge is essentially a loan made to the responsible party, but that might, as I understand the matter, be the individual, even for a corporate card.

     

    Of course, I'm still not sure why the donor would want to use the corporate card in this case, or how we would know the terms and conditions of the card and who is legally responsible for the charges, or what the company policy might be about such charges.  And I also remember talking to an Annual Fund colleague who indicated that the convenience fee charged may be higher for a corporate card rather than an individual card.

     

    So, probably better if your donor would make the payment another way, but I'm not quite as convinced as John is that the matter is entirely black and white.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu                                                                                                                                            

     






  • 4.  RE: Company Credit Card/Personal Contribution

    Posted 3 days ago
    There are situations where I think this would be fine. If the donor provides some signed memo from the company saying the org is acting as his agent, you could hard-credit him.  If the company is a disregarded entity (LLC or S-Corp) and the contribution lands on the personal tax return anyway, that's another possibility. 


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    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

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