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Quid Pro Quo Specifics

  • 1.  Quid Pro Quo Specifics

    Posted 28 days ago
    Hi Fundsvcs community,

    Questions on quid pro quo gifts have been popping up left and right in my shop lately and I wanted to tap your collective wisdom on some specific questions I'm getting:

    • Do the QPQ thresholds apply per donation or per donor? For example - a donor sends us $60 and receives a token item that falls under the 2021 threshold. Later that same year, the same donor sends another $60 donation. Is that donor maxed out on the benefits she can receive from our institution for the year, or can she receive another token item?
    • Rev Proc 90-12 talks about benefits associated with payments to a charity. What about benefits associated with pledges? What happens when payments on the pledge are received - do we need to apply the QPQ thresholds at that point?
    • Similar to the last scenario - we occasionally recognize a donor's lifetime giving to the university with a nice gift to the donor. If that donor gives us a donation the same tax year as they receive their gift from the university, do QPQ rules apply?
    Any and all help would be welcome! My stance is to encourage our Donor Relations team and Gift Officers to stay far away from benefits received in connection with donations but obviously that's not always realistic. I want to make sure that when we do venture down this road, we do it legitimately!

    Thank you,
    Tori

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    Tori Sellner '12, '19 MSL | Associate Director of Gift Accounting
    University of St. Thomas, University Advancement
    2115 Summit Ave, Mail DEV | St. Paul, MN 55105
    p (651) 962-6899 | f (651) 962-6996
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  • 2.  RE: Quid Pro Quo Specifics

    Posted 28 days ago
    • Per gift - unless the benefit is based on cumulative giving.
    • If the donor doesn't ever have to pay you a dime, then there is no QPQ.  This is similar to when public radio mentions that no gift - or pledge - is necessary to enter a drawing.
    • Yes.  Even if based on lifetime giving, one way or another the donor needs to account for the value of the benefit in their tax return.  One way to accomplish this is to issue a 1099 if the value is over $600.
    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