Best Practice for Accepting Gifts & Giving Tax Deduction

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Stacey Brake
Stacey Brake
Seventh Anniversary 25 Likes 10 Comments Photogenic
in Blackbaud Raiser's Edge NXT®: General Discussion
I'm looking to see how others handle this type of situation:


We have a staff member who's friend gave him $100 to give to us as a donation. The staff member wants to make the donation on his own personal credit card on behalf of the original donor. The staff member wants the original donor to receive the hard credit as well as the tax deduction letter.


My understanding of IRS rules and auditing practices is this:


The donor is the one whose name is on the check or the credit card. They are the ones that receive the hard credit and the tax deduction letter.


How I am suggesting this scenario be handled is:


I give the staff member the hard credit (no letter will be given and the detail will be notated in the gift notes). The original donor will receive a soft-credit (with detail notated in the gift notes) and a nice thank you letter sent without the tax deduction information. It seems that this would fulfill the IRS rules as well as provide a proper audit trail. How does everyone else handle these situations? Thank you in advance!
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  • Patti Hommes
    Patti Hommes Community All-Star
    Seventh Anniversary 500 Likes 100 Comments Photogenic
    We've had similar situations and it drives me crazy! We get a check or cc donation from John Doe "on behalf of" Susie Smith, with a request that Susie get a tax deduction letter. I hard credit John Doe and put the "on behalf of" info in the gift reference. For the requested letter to Susie, I send our general "thank you for your generous support, etc., etc., etc." but no $ amount.
  • JoAnn Strommen
    JoAnn Strommen Community All-Star
    Ancient Membership 2,500 Likes 2500 Comments Photogenic
    'Clap' and 'like' don't seem sufficient for Dariel Dixon‍ and Patti Hommes‍. And to you Stacey Brake‍ for correctly understanding IRS rules.


    Slippery slope for the staff person as they may also be receiving personal benefits for making the charge on their card. Probably not much 'reward' for $100 but certainly would if repeated or for larger amount.


    I would say "no" if staff member has the cash. Have him submit the cash and take his word for it that it's from friend and receipt friend.
  • Patti Hommes
    Patti Hommes Community All-Star
    Seventh Anniversary 500 Likes 100 Comments Photogenic
    JoAnn Strommen:

    'Clap' and 'like' don't seem sufficient for Dariel Dixon‍ and Patti Hommes‍. And to you Stacey Brake‍ for correctly understanding IRS rules.


    Slippery slope for the staff person as they may also be receiving personal benefits for making the charge on their card. Probably not much 'reward' for $100 but certainly would if repeated or for larger amount.


    I would say "no" if staff member has the cash. Have him submit the cash and take his word for it that it's from friend and receipt friend.

    Thanks! JoAnn!

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