FundSvcs Community

Hello,

My org does not do a lot of event or giving drive donations but has been invited to participate in an event where attendees will have the option to make a donation at the event. The host company wants to collect any cash donations themselves and then write a check to us equaling the amount collected. Are we able to provide tax receipts for the cash donations made at the event, even though the money will eventually come to us from the host company?

------------------------------
Anne Pires
Associate Director, Investor Relations
Year Up
apires@yearup.org
------------------------------

Original Message:
Sent: 12/2/2021 11:29:00 AM
From: Anne Pires
Subject: Donation Drive

Hello,

My org does not do a lot of event or giving drive donations but has been invited to participate in an event where attendees will have the option to make a donation at the event. The host company wants to collect any cash donations themselves and then write a check to us equaling the amount collected. Are we able to provide tax receipts for the cash donations made at the event, even though the money will eventually come to us from the host company?

------------------------------
Anne Pires
Associate Director, Investor Relations
Year Up
apires@yearup.org
------------------------------

Original Message:
Sent: 12/2/2021 11:58:00 AM
From: Isaac Shalev
Subject: RE: Donation Drive

You can sign an agreement with the host that says that they are acting as your agent, to receive these donations on your behalf. However, if they're collecting cash, you'll need to think through how you're going to provide receipts and also how you will capture the donor information into your database. You might also want to hear from the business how they plan to handle the cash receipts - what are their control procedures? Note that in this setup, the business does not receive a tax letter, since they are not in fact the donor, they're just an agent, similar to your credit card processor.

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

Schedule a 30-minute consultation now:

https://calendly.com/sage70/30min

Original Message:
Sent: 12/2/2021 11:29:00 AM
From: Anne Pires
Subject: Donation Drive

Hello,

My org does not do a lot of event or giving drive donations but has been invited to participate in an event where attendees will have the option to make a donation at the event. The host company wants to collect any cash donations themselves and then write a check to us equaling the amount collected. Are we able to provide tax receipts for the cash donations made at the event, even though the money will eventually come to us from the host company?

------------------------------
Anne Pires
Associate Director, Investor Relations
Year Up
apires@yearup.org
------------------------------

Original Message:
Sent: 12/2/2021 12:33:00 PM
From: John H. Taylor
Subject: RE: Donation Drive

I agree with all points.

You will also want to work out the details of receiving exact breakdowns of who paid what (if they act as your agent).  You will also need to ensure that they either capture the payment mechanism and send you copies or are fully trained and oriented on matters of determining the legal donor.

If tax deductibility is not a concern, this could be treated as a "proceeds to benefit" event.  The company can send a lump-sum payment with the amount recorded on a "Various Donors" record. No one receives a gift receipt, but at least you can reflect the philanthropy in your fundraising totals.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 12/2/2021 11:58:00 AM
From: Isaac Shalev
Subject: RE: Donation Drive

You can sign an agreement with the host that says that they are acting as your agent, to receive these donations on your behalf. However, if they're collecting cash, you'll need to think through how you're going to provide receipts and also how you will capture the donor information into your database. You might also want to hear from the business how they plan to handle the cash receipts - what are their control procedures? Note that in this setup, the business does not receive a tax letter, since they are not in fact the donor, they're just an agent, similar to your credit card processor.

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

Schedule a 30-minute consultation now:

https://calendly.com/sage70/30min

Original Message:
Sent: 12/2/2021 11:29:00 AM
From: Anne Pires
Subject: Donation Drive

Hello,

My org does not do a lot of event or giving drive donations but has been invited to participate in an event where attendees will have the option to make a donation at the event. The host company wants to collect any cash donations themselves and then write a check to us equaling the amount collected. Are we able to provide tax receipts for the cash donations made at the event, even though the money will eventually come to us from the host company?

------------------------------
Anne Pires
Associate Director, Investor Relations
Year Up
apires@yearup.org
------------------------------