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Question about distance/line of sight between donor and budget administrator

  • 1.  Question about distance/line of sight between donor and budget administrator

    Posted 23 days ago

    Hello, all –

     

    Do any of your institutions have policies about how to treat gifts that budget administrators want to make to the funds they oversee? 

     

    For instance, can a gift still be deductible if a professor makes the gift specifically to a gift fund that is used specifically to fund his/her research?  How about if the professor doesn't make the gifts, but his/her spouse does so from an account without the professor's name on it; does that change things at all?  And if your institutions would NOT allow things such as these, how do you define what an appropriate amount of distance is between the donor and the fund administrator?    

     

    And let's assume, for the purposes of this scenario, that the research/work IS being done for the benefit of the institution (i.e. it's not a side project or something only tangentially related to the institution). 

     

    Thanks!

     

    Michael Halverson, Ed.D.
    Senior Director of Advancement Services
    Loyola University Chicago
    T.
    312-915-7283 | C. 320-363-4987
    mhalverson@luc.edu | www.luc.edu/advancement

     

    150_email_150_31

     



  • 2.  RE: Question about distance/line of sight between donor and budget administrator

    Posted 23 days ago
    This is perfectly legal from an IRS perspective.  However, I do know some institutions discourage this.  We didn't have an issue at NC State.  But we did have specific requirements.  Here's what we had in our Gift Acceptance Policy back in the day:

    1.      Gifts from University Faculty and Staff

     

    1.1  Gifts from faculty and staff of North Carolina State University must meet the following three criteria in order to be deductible for tax purposes:

     

    1.2  Charitable intent should be the primary reason for making the contribution.

     

    1.3  The contribution must be credited to a fund not under sole control of or does not personally financially benefit the donating faculty or staff member.

     

    1.4  The faculty or staff donor should not receive or expect to receive future remuneration from the fund to which their gift was credited.  Examples of deductible gifts would include signing an honorarium check over to the department and that faculty member not having control over the receiving fund (this is taxable income to the faculty member as well), making a stock donation to fund a life income gift to ultimately benefit a University-wide scholarship endowment, or donating equipment or materials for use by the department.

    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: Question about distance/line of sight between donor and budget administrator

    Posted 23 days ago
    Our gift acceptance policy has the following:

    Faculty Gifts

    University faculty and staff members may make gifts to the University, provided, however, that they do not receive personal direct benefit from the gift and are accounted for according to applicable tax and accounting requirements.


    we're not a heavy research institution so hasn't been an issue with the statement above


    thx 


    --
    Thomas Chaves
    Associate VP for Advancement Operations
    Office of Advancement
    Saint Joseph's University
    5600 City Avenue, Philadelphia, PA 19131

    O: 610-660-1255 | M: 610-316-6541 | tchaves@sju.edu
    SJU.edu





  • 4.  RE: Question about distance/line of sight between donor and budget administrator

    Posted 23 days ago

    Thank you, John and Tom, for your feedback here.  As always, it is much appreciated!

     

    Michael Halverson, Ed.D.
    Senior Director of Advancement Services
    Loyola University Chicago
    T. 312-915-7283 | C.
    320-363-4987
    mhalverson@luc.edu | www.luc.edu/advancement