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Upsell purchases

  • 1.  Upsell purchases

    Posted 07-08-2022 01:07 PM

    Hello! I'm new to the advancement services world, and I'm hoping you all can answer a couple of questions for me. Our organization is hosting a 5K event. Through online registration, the participants can also choose to add on upsell items such as a medallion and/or a poster to be displayed at the event and then sent home with the participant. (We get the information for the poster from the participant and then we order the prints from a graphics company). My questions are: how should these upsell purchases be recorded in our database-is the purchase considered a gift? And how should these be receipted/acknowledged?

    Thank you!

    Erica Christian
    Philanthropy Assistant
    Iowa Donor Network

  • 2.  RE: Upsell purchases

    Posted 07-12-2022 08:44 AM
    Hi Erica,

    If the items are being sold at fair market value then there can be no gift. If the items are offered in exchange for an additional contribution that is above FMV, the gift is a quid pro quo gift that requires a receipt indicating the FMV of the gift and a statement that the only amounts paid in excess of the FMV may be deductible.

    The gift should be recorded in your database as a QPQ gift, where the gift and non-gift portions can both be recorded.

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

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