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Accepting Corporate Gift

  • 1.  Accepting Corporate Gift

    Posted 28 days ago
    All - 

    We have a company that has selected two PhD students that we nominated to receive an award supporting their costs.  The company wants to make a gift to cover the tuition and costs of the two students.

    Our Foundation does not want to accept the gift because the company "selected the recipients" and they feel that this now changes the characteristics of the gift to be a Contract per new CASE guidelines.  Our Contractual Research arm will not accept the gift because it is not research related.

    A bit of a catch 22 - Is our Foundation interpreting the new CASE guidelines too narrowly?


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    Mark Sanders
    Director of Development Information Systems
    Georgia Tech
    mark.sanders@gatech.edu
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  • 2.  RE: Accepting Corporate Gift

    Posted 28 days ago
    These are not CASE rules but IRS Regulations.  See IRS Publication 526.  A nonprofit organization cannot be used as a conduit for an entity to funnel money to specific individuals.

    For the corporation to be able to claim a donation you must retain 100% control over the funds and selection process.

    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: Accepting Corporate Gift

    Posted 28 days ago
    Here is the caveat - We nominated the students for the award - the students did not nominate themselves....

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    Mark Sanders
    Director of Development Information Systems
    Georgia Tech
    mark.sanders@gatech.edu
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  • 4.  RE: Accepting Corporate Gift

    Posted 28 days ago
    But you stated the company "selected the recipients."

    As long as this was all done internally and the company had no say in the selection or approval then I do not see where there is a problem.

    But if the company had no say, why does the Foundation think otherwise?

    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