FundSvcs Community

  • 1.  Purchase with Donation

    Posted 16 days ago

    One of our gift officers has been asked about a virtual event and has posed the question to the gift processing secretary to make sure they know the rules.  It is a two part question and I would like to know if anyone else has dealt with this and could give any advice. 


    1. They want to have a virtual trivia night where there would be an entry fee to support emergency student relief.  We know entry fees would not be considered a donation and would be handled as a non-gift to the fund. There is mention of maybe having door prizes but they were not sure about that so I would like to address that from the beginning as well.  
    2. They would also like to sell a homecoming kit with a portion of the proceeds of each homecoming kit being considered a donation to support emergency student relief. The gift officer said they were thinking  people would pay more if they knew that $5 from each kit went to emergency student relief, for instance. The items in the kit would be a drinkware something, pom poms, etc. and they would price the kit just above the cost to purchase and ship the kit to create the cushion to donate.  


    Is this allowable under IRS rules? 

    If allowed, what are the procedures for doing door prizes?

    If allowed, how do you determine the cost of the homecoming kit?

                    Cost of supplies in the kit + donation = homecoming kit price                            

                    Fair market value of the kit + donation = homecoming kit price

     If allowable under IRS rules does anyone have any wording they would use. 

     With more and more virtual events we are getting some different questions about how to fund raise and we want to make sure we are compliant with IRS rules.

     Thank you in advance for any assistance you provide on this. 

    Corie Pryor
    Coordinator of Advancement Services
    Truman State University