Sponsorship of someone attending an event

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Jonathan Meester
Jonathan Meester ✭
Tenth Anniversary Photogenic First Reply
in Blackbaud Raiser's Edge NXT®: General Discussion
We have an event coming up where if donor is unable to attend, they may purchase a ticket for a caregiver from our hospital can attend instead. Or a business could sponsor a table, so caregivers can attend the event. We are wondering, for the donor/business who is not attending, do we treat this as a quid pro quo contribution and provide them with the value of the benefits.
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  • Sunshine Reinken Watson
    Sunshine Reinken Watson ✭✭✭✭✭
    Ancient Membership Facilitator 4 Name Dropper Photogenic
    We had an organization do this at our Gala so clients could attend, and we ended up receipting them for their full donation (and eating the cost of that table). It is a sticky situation because technically they should still pay for the benefits of whoever attends.
  • John Heizer
    John Heizer ✭
    Ancient Membership Facilitator 3 Photogenic
    I would provide them with the same value that you provide to anyone else and let them deal with any of the legal tax issues (whether they consider the entire amount deductible or if they consider the "fair market value" to also be a donation to those who use the ticket).  Your cost and income are still the same.



    As always I advise anyone to NEVER use the words "your tax deductible amount" in any receipting because that could get you dragged into dealing with the IRS if the donor gets audited.
  • Jen Claudy
    Jen Claudy ✭
    Tenth Anniversary Facilitator 4 Name Dropper Photogenic

    John Heizer:

    As always I advise anyone to NEVER use the words "your tax deductible amount" in any receipting because that could get you dragged into dealing with the IRS if the donor gets audited.

    This.  This needs to be a big banner somewhere.  In blinking lights.



    I always recommend, "The fair market value of goods and services received is $___.  Please consult your tax professional concerning the deductibility of your charitable giving."  Or even, "No goods or services were received in exchange for this gift.  Please consult your tax professional concerning the deductibility of your charitable giving."



    You provide the information you are required to provide (and sometimes you do it simply as a courtesy) and that's it.  Everything else is up to the donor and their tax professional to sort out.

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