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Quid pro quo

  • 1.  Quid pro quo

    Posted 09-02-2021 10:20 AM
    Good morning!

    If a donor refuses a quid pro quo in writing prior to the benefit being issued, is the full value of the gift deductible?   Donors who make a gift to the theatre department can receive two free tickets to a performance.  Donor makes (generous gift), explicitly states that they do not want to receive tickets. Regardless of the answer, can someone point me to where the IRS says it is so?

    Thank you!

    Tracy Rush
    Exec Dir Adv Services
    Otterbein University

  • 2.  RE: Quid pro quo

    Posted 09-02-2021 10:36 AM
    Hi Tracy,

    You are correct that donors who decline tickets get the full value of the deduction, simply because the gift itself is no long a QPQ. The donor isn't getting anything in return, and your receipt to them will indicate that they gave $75 and got nothing in return. If you look at Pub 256, you'll see that even if you accept the tickets, but then return them, you can deduct the whole contribution:

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

    Schedule a 30-minute consultation now:

  • 3.  RE: Quid pro quo

    Posted 09-02-2021 10:56 AM
    No IRS reference needed.  If they don not receive a benefit in exchange for a gift then there is no QPQ.  If they do not refuse the benefit then they got the benefit and there is a QPQ.  If they subsequently return a benefit that is a gift-in-kind.

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard

  • 4.  RE: Quid pro quo

    Posted 09-02-2021 12:57 PM

    John and Isaac---thank you so much!  I appreciate it.  I thought that was the case...but wanted to confirm. So grateful to have this AASP community.