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seat-associated gifts becoming a real donation

  • 1.  seat-associated gifts becoming a real donation

    Posted 24 days ago

    Hi All,

    Our Governor has now confirmed that New York State will not allow fans in the seats for the fall season of college sports. We will be offering our 4500 football season ticket holders various options, one of which is to convert all received funds (all FB season tickets, associated seating donations, Club 44 passes, and seatbacks) to a donation to our general Athletic Discretionary support fund.

    The season ticket holders may have made payment in fall 2019. They may have made payments on a recurring schedule that includes fall 2019 and spring 2020. This would be FY2020 business on our general ledger.

    For the funds that are not already in a fundraising total (actual ticket costs, seatback purchases, etc.) those would be added as donation for the date the donor tells us it's a donation. So even if they paid us $500 in tickets, parking, etc. in 2019 that isn't a donation until July 2020.

    My frustrating wrinkle: For our seating donations, these would have been the old 80/20 donations. We allocate these to a non-deductible contribution revenue account, but we have already counted this money in our fundraising totals for FY2020. (No tax receipts issued.)

    My question stems from the fact that normally date of gift would be the date the donor tells us it's a donation, but if we have already counted this in our totals, can we leave the date of gift as is, and issue a tax receipt accordingly? 

    Apologies for the length and backstory, but as we've said before, we're working through unprecedented times and I'm sure I won't be the only person dealing with this issue this fall!








    ------------------------------
    Jodie M. Ralston
    Executive Director
    Advancement Services
    T 315.443.1718 F 315.443.2874
    jralston@syr.edu
    640 Skytop Road, Room 241, Syracuse, NY 13244
    giving.syracuse.edu
    Syracuse University
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  • 2.  RE: seat-associated gifts becoming a real donation

    Posted 24 days ago
    That's not a new wrinkle.  The 80/20 rule went out in January of 2018.  In 2018 and 2019 you should not have given any tax-deduction for any of those payments.

    If you are saying, however, that you counted the 80% even though it wasn't a deductible gift (CASE allowed this - but NOT the 20%), then you should now issue a receipt effective the date the donor chooses to "convert" the payment.  But you cannot count the funds again. 

    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: seat-associated gifts becoming a real donation

    Posted 24 days ago

    Yes, John, sorry, I was saying we counted the 80% even though it wasn't deductible. So the tax receipt would state date of gift as July 2020 (FY21), but we can keep it recorded as FY20 revenue on the GL and in fundraising totals.

     

    Thank you. Appreciate your guidance as ever.

     

    --Jodie

    Jodie M. Ralston
    Executive Director, Advancement Services
    Advancement and External Affairs

    T 315.420.1490  
    jralston@syr.edu

    Syracuse University Forever Orange The Campaign for Syracuse University

     






  • 4.  RE: seat-associated gifts becoming a real donation

    Posted 24 days ago
    I am not suggesting what year the business office will want to recognize this!  I am only saying that since these were counted in FY20 you should leave the counting piece alone.

    But since these were never gifts to begin with (per the IRS), back in FY20 the business office likely treated these as non-gift or miscellaneous revenue.  For accounting purposes they very likely will need to make some sort of adjustment on their books.  That is up to them.  However, you will want to advise them, by fiscal year, how much from back then is now classified as a gift.

    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







  • 5.  RE: seat-associated gifts becoming a real donation

    Posted 24 days ago

    Oh definitely! That will happen when we make the adjustments in our CRM feed to the GL. They're already aware of this, thankfully! I wanted to make sure I was getting the tax receipt correct most of all.

     

    --Jodie

    Jodie M. Ralston
    Executive Director, Advancement Services
    Advancement and External Affairs

    T 315.420.1490  
    jralston@syr.edu

    Syracuse University Forever Orange The Campaign for Syracuse University

     






  • 6.  RE: seat-associated gifts becoming a real donation

    Posted 17 days ago
    We are currently evaluating multiple scenarios around this topic. One of which is the same path that is being discussed here and what would need to be done with non-gift revenue.

    Another scenario is the possibility that seating, especially in premium areas, would be greatly reduced. In this scenario the question of creating a points system for Athletic donors has come up. My concern is that this point system would inadvertently take donations counted as 100% deductible and essentially convert them to non-gift revenue due to the 2018 tax reform once those donations are used to earn 'points'. Does anyone have any guidance on this issue?

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    Matt Bucy
    Director of Development Operations
    bucym@apsu.edu
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