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Athletics Priority Points

  • 1.  Athletics Priority Points

    Posted 12 days ago

    Let's talk about athletics priority points!

    We all know that gifts which are required to purchase priority seating at athletics events are no long tax deductible.  But what about otherwise fully charitable gifts for which priority points are issued (which then rank individuals in line for the opportunity to purchase those better seats?)

     

    A case MIGHT be made that there is not enough of a benefit here to worry about (especially for an institution without long waiting lines for this opportunity,) but that case is harder to make during a promotion offering 5x the number of priority points for a gift for a certain period.  Considering further, what about 2x the number?

     

    I have been all over AASP, CASE, and Fundsvcs for answers.  The only information found appears to support, "any seating benefit at all, no deduction," however, a search of many institution athletic sites reveals the point system is alive and well – in all sorts of iterations.

    What say all of you?

    Many thanks,

    Beth

     



    ------------------------------
    Beth Wiley
    Asst. Vice President for Advancement Services
    East Tennessee State University
    wileybc@etsu.edu
    ------------------------------


  • 2.  RE: Athletics Priority Points

    Posted 12 days ago
    Points are the same deal.  The new law did not change that aspect.  They still earn you priority or preference.  So those gifts are not tax-deductible, either.

    You will want to get further guidance from Counsel.  However, before the new laws, there were plenty of articles on points subjecting them to the 80/20 rule.  What was 80/20 then is now zero!

    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: Athletics Priority Points

    Posted 12 days ago
    I was trying to find a quote for you when I sent this earlier and it took me a while.  Here is language from the UNC Ram's Club brochure on the topic.  Note that they follow an increasingly common practice of allowing donors to decline points to retain deductibility:

    "The Rams Club's tax advisors have advised us that the new legislation affects the deductibility of not only gifts that directly grant rights to seats, but also any gift that gives a donor the opportunity for priority to a better seat. The Rams Club wants to provide members with an option to decline points on certain types of gifts so that they may preserve tax deductibility on those gifts."

    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







  • 4.  RE: Athletics Priority Points

    Posted 12 days ago

    Thanks John!

    This is so helpful.  It has been difficult to convince folks that the legislation really means what it says when examples of other treatments are so plentiful.

    Thank you for turning up this example!

    Beth



    ------------------------------
    Beth Wiley
    Asst. Vice President for Advancement Services
    East Tennessee State University
    wileybc@etsu.edu
    ------------------------------