FundSvcs Community

Hello colleagues!

We received a check with a memo in the stub for "Full-Page Ad/2 Issues" in our newsletter (again, this is printed on the stub, not the check). I wasn't a part of the initial agreement with this donor org (they have donated in the past), but my assumption is that someone said, hey we will give you ad space if you contribute toward the publication. Since they're a donor, it's probable the org expects tax credit. However, from where I stand, there's an obvious exchange of goods & services here. We are giving them ad space, they are giving us money. Is it not so cut and dry as that? What is the restriction or rule for donating and receiving ad space? For context, we have not ever to my knowledge sold ad space in our publications, so I'm really not sure how to quantify the value of that, but if I'm going by the 2% rule (value of gift received by the donor can't be greater than 2% of the gift), then our ad space could not be worth more than $27 for a full page ad.

Help! I'd love the resident experts to weigh in on this.

Thank you!

------------------------------
Melissa Rufener
Coordinator of Advancement Services
Life Pacific University
mrufener@lifepacific.edu
http://www.lifepacific.edu
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Original Message:
Sent: 11/2/2021 12:47:00 PM
From: Melissa Rufener
Subject: Newsletter Ad in return for "Donation"

Hello colleagues!

We received a check with a memo in the stub for "Full-Page Ad/2 Issues" in our newsletter (again, this is printed on the stub, not the check). I wasn't a part of the initial agreement with this donor org (they have donated in the past), but my assumption is that someone said, hey we will give you ad space if you contribute toward the publication. Since they're a donor, it's probable the org expects tax credit. However, from where I stand, there's an obvious exchange of goods & services here. We are giving them ad space, they are giving us money. Is it not so cut and dry as that? What is the restriction or rule for donating and receiving ad space? For context, we have not ever to my knowledge sold ad space in our publications, so I'm really not sure how to quantify the value of that, but if I'm going by the 2% rule (value of gift received by the donor can't be greater than 2% of the gift), then our ad space could not be worth more than $27 for a full page ad.

Help! I'd love the resident experts to weigh in on this.

Thank you!

------------------------------
Melissa Rufener
Coordinator of Advancement Services
Life Pacific University
mrufener@lifepacific.edu
http://www.lifepacific.edu
------------------------------

Thank you! Appreciate the response.

------------------------------
Melissa Rufener
Coordinator of Advancement Services
Life Pacific University
mrufener@lifepacific.edu
http://www.lifepacific.edu
------------------------------

Original Message:
Sent: 11-02-2021 12:42 PM
From: John Taylor
Subject: Newsletter Ad in return for "Donation"

You answered the first question.  Had you sold as space before you could treat this as a QPQ and reduce the gift by the value of the space.  But that's off the table if you don't sell that space.

You can limit the ad to name, logo, and contact information.  That would be akin to recognition and okay.

But if a true "ad," the entire payment is considered the cost of purchasing the advertising and there is no gift at all.

John

John H. Taylor 

919.816.5903 (Cell/Text)

Big Ideas; Small Keyboard

Original Message:
Sent: 11/2/2021 12:47:00 PM
From: Melissa Rufener
Subject: Newsletter Ad in return for "Donation"

Hello colleagues!

We received a check with a memo in the stub for "Full-Page Ad/2 Issues" in our newsletter (again, this is printed on the stub, not the check). I wasn't a part of the initial agreement with this donor org (they have donated in the past), but my assumption is that someone said, hey we will give you ad space if you contribute toward the publication. Since they're a donor, it's probable the org expects tax credit. However, from where I stand, there's an obvious exchange of goods & services here. We are giving them ad space, they are giving us money. Is it not so cut and dry as that? What is the restriction or rule for donating and receiving ad space? For context, we have not ever to my knowledge sold ad space in our publications, so I'm really not sure how to quantify the value of that, but if I'm going by the 2% rule (value of gift received by the donor can't be greater than 2% of the gift), then our ad space could not be worth more than $27 for a full page ad.

Help! I'd love the resident experts to weigh in on this.

Thank you!

------------------------------
Melissa Rufener
Coordinator of Advancement Services
Life Pacific University
mrufener@lifepacific.edu
http://www.lifepacific.edu
------------------------------