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Consultant Reimbursement/Receipt and Recording

  • 1.  Consultant Reimbursement/Receipt and Recording

    Posted 10-18-2021 12:42 PM
    We have a physician who provided consulting services and received a Consultant Fee in return for services. The physician requested that the payment be issued to our Foundation in lieu of receiving the income. We have now received payment and we provided a W-9 with our Tax ID. Two questions: 1) Should this payment be recorded as a gift from the check issuer, or is a contractual agreement thus no deductible gift receipt? 2) In the past we have recorded these in our donor system as tribute gifts received in honor of the physician; but have a request to issue Soft Credit to the physician instead. Is that appropriate?

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    Jana Fross
    Operations and Data Coordinator
    HaysMed Foundation
    jana.fross@haysmed.com
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  • 2.  RE: Consultant Reimbursement/Receipt and Recording

    Posted 10-18-2021 12:48 PM
    Unless the physician was issued a 1099 reflecting the income, there is no gift.  They must first accept the payment in order to then donate it.  While money does not have to change hands, on paper the income must be recorded.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 3.  RE: Consultant Reimbursement/Receipt and Recording

    Posted 10-18-2021 01:05 PM
    Thanks John. I thought that would be the answer but wanted to confirm. Our Director would like to issue a "soft credit" to the physician for directing the payment our way - for donor recognition purposes only. Would that be appropriate? Under previous leadership we have recorded as a "tribute/in honor of" with no soft credit.

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    Jana Fross
    Operations and Data Coordinator
    HaysMed Foundation
    jana.fross@haysmed.com
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  • 4.  RE: Consultant Reimbursement/Receipt and Recording

    Posted 10-18-2021 01:13 PM
    I agree that soft credit is appropriate here.  However, I encourage you to develop a formal Recognition Credit Policy that sets limits and criteria for things like this.  Else, you might be inundated with requests for soft-credit-only for "nickles and dimes," taxing your overtaxed gift entry staff.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard