Donations to a Third-Party Event

Elizabeth Gohringer

Hi Everyone, So, one of our trustees "went rogue." He is affiliated with Ride for Food and is soliciting donations from individuals and companies to purchase jerseys for the riders that he's sponsoring. My organization is a non-profit which is not directly involved with Ride for Food. Somehow the wires got crossed and a sponsoring company sent a check for the jerseys to my organization. The check came in without any other paperwork or documentation to explain what it was for, so we deposited it as a donation. We're now wondering how to handle this check and wondering if any of you have dealt with a similar situation to this before. Looking for any suggestions. Thank you! Elizabeth

JoAnn Strommen

Elizabeth Gohringer:
Hi Everyone, So, one of our trustees "went rogue." He is affiliated with Ride for Food and is soliciting donations from individuals and companies to purchase jerseys for the riders that he's sponsoring. My organization is a non-profit which is not directly involved with Ride for Food. Somehow the wires got crossed and a sponsoring company sent a check for the jerseys to my organization. The check came in without any other paperwork or documentation to explain what it was for, so we deposited it as a donation. We're now wondering how to handle this check and wondering if any of you have dealt with a similar situation to this before. Looking for any suggestions. Thank you! Elizabeth

So, it sounds like your org really has nothing to do with Ride for Food, correct? 

It may take some soft touches but my first response would be to contact the donor and explain what happened (check deposited - no notation, now learned intent of donation, trustee valuable volunteer for you org, also volunteer with Ride for Food, this event not affiliated with your org, so sending them check for the amount received in error) and send them a check for the full amount. Provide donor with info on who to make check out to if you know.  Also let trustee know what's happened.  If trustee is intending to print donors org on the jerseys that puts him/Ride for Food in a situation that could negate the tax deductibility, if there even is any when check may need to just be made to trustee.

Had this with check received from a company intending to pay registration for basketball team.  Had to do some account shifting and letting donor know not tax-deductible.

That's jsut my thoughts...

Melissa Graves 3

Elizabeth Gohringer:
Hi Everyone, So, one of our trustees "went rogue." He is affiliated with Ride for Food and is soliciting donations from individuals and companies to purchase jerseys for the riders that he's sponsoring. My organization is a non-profit which is not directly involved with Ride for Food. Somehow the wires got crossed and a sponsoring company sent a check for the jerseys to my organization. The check came in without any other paperwork or documentation to explain what it was for, so we deposited it as a donation. We're now wondering how to handle this check and wondering if any of you have dealt with a similar situation to this before. Looking for any suggestions. Thank you! Elizabeth

Train your trustees!

I would return the check and ask them to destroy/return the tax receipt from you that they received. It happens, checks sent to one org, intended for another. Not something you can always prevent or forsee.

Melissa 

Melissa Graves 3

JoAnn Strommen:

So, it sounds like your org really has nothing to do with Ride for Food, correct? 

It may take some soft touches but my first response would be to contact the donor and explain what happened (check deposited - no notation, now learned intent of donation, trustee valuable volunteer for you org, also volunteer with Ride for Food, this event not affiliated with your org, so sending them check for the amount received in error) and send them a check for the full amount. Provide donor with info on who to make check out to if you know.  Also let trustee know what's happened.  If trustee is intending to print donors org on the jerseys that puts him/Ride for Food in a situation that could negate the tax deductibility, if there even is any when check may need to just be made to trustee.

Had this with check received from a company intending to pay registration for basketball team.  Had to do some account shifting and letting donor know not tax-deductible.

That's jsut my thoughts...

Joann - what do you mean about tax deductibility? If Ride for Food is a separate charity org, and they put the names of sponsors on t-shirts there is no issue with tax deductibility for those sponsors. 

JoAnn Strommen

Melissa Graves:

Joann - what do you mean about tax deductibility? If Ride for Food is a separate charity org, and they put the names of sponsors on t-shirts there is no issue with tax deductibility for those sponsors. 

Sorry - wasn't clear.  If they end up writing the check to the 'trustee' there's no charitable tax-deduction.  I'm guessing Ride for Food is not looking for donors for jerseys for one team.  The post sounded like this was being done outside of both organizations.  For the company, if they get their name on a shirt, most times would be looking at a company tax-deduction for advertising, not a charitable deduction.  I know there are a number of factors to to considered. That's my understanding anyway....