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FW: Donor's request to redirect the gift

  • 1.  FW: Donor's request to redirect the gift

    Posted 12-03-2019 10:09 AM

    Good morning Colleagues!


    I have a situation that is rather unusual and I would like your input on what is the best way to handle it.


    We were raising money to fund the construction of a building on campus. Unfortunately after a number of years of fundraising efforts there was not enough philanthropic interest to fund the project. We went back to the donors and asked whether they would like their money returned or redirect to another fund. One of the donors came back and requested that his donation to be transferred to another 501C3 organization. Is that acceptable?


    Thank you in advance for your input!




  • 2.  RE: FW: Donor's request to redirect the gift

    Posted 12-03-2019 10:22 AM
    Actually, redirecting the gift to another qualified nonprofit organization is far better than returning the gift.  That essentially protects the donors original tax-deduction.

    Any of the funds you return to donors, if $600+, require yo9ur issuing a 1099 to those donors.  They must pay taxes on what now has become an income transaction.


    John H. Taylor
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987