Non Deductible Donations

No. Any funds that come in like this are deposited on the accounting side, but never entered into the fundraising database. It makes things very murky, and causes confusion. NGCCOT. IMO, it's a disaster waiting to happen.

Definitely not something that should run through Development.

This article is a little old, but I don't believe things have changed regarding the tax deductibility for the donor. I would definitely see if CASE or AASP provide specific details on their websites. While some of their resources are opinions, many have legal backup.

Karen

A gift is a gift whether it's tax-deductible or not. It's a transaction that reflects both a relationship with a constituent and a transfer of contributed assets (again, whether tax-deductible or not).

I think there is room for context here @Stu Manewith. Where we differ is the part above (emphasis added). I don't mind that there place for the recording of non-charitable transactions, in RE, but I think there might be other places for it within the database, and not necessarily as a gift. The part I think that causes conflict is that not all organizations have the processes in place or the trained personnel to be able to understand the nuance on how to properly classify a gift that is tax-deductible versus one that is not.

A gift record is simply that…a record of charitable giving. The gifts in the original post are by definition not tax-deductible as they are payment for a service, in this case is education. I think that not drawing the line just allows you to be always considering every possibility. Then again, that is the point of documentation.

RE system users routinely enter non-deductible transactions into RE, eg, having to do with event registrations in which a part of the registration fee is deductible and part is not. IMO, as a fundraiser with 35 years of experience behind me, I think it's a mistake not to reflect all gifts (tax-deductible or not) on a constituent's record. With the breadth of RE's gift coding options, there is a myriad of ways to distinguish these transactions. Would love to hear some cogent replies.

Obviously any gift with a non-deductible part is different than a gift with no deductible portion at all. RE was designed to handle gifts such as this, but just as RE should not be used as a general ledger, the gift record should not be used to record non-gifts. Paying the tuition for a student is not a gift to the institution, it is a benefit to the student. That said, the gift record does not always tell the whole story of a constituent. Notes, actions, and prospect tabs are where a lot of the context is hidden.

I like the way you worded that @Stu Manewith. Donor intent is key here. If the donor is truly attempting to help the organization, then there needs to be some education involved about how naming specific students negates not only the potential deduction, but also doesn't work to advance the mission of the institution as only one person will benefit.

Granted, we may never know exactly what the intent is or the relationship between the donor and the student unless a more in-depth conversation is had. I think we agree that there should be some conversation between the donor and a fundraiser so further gauge the intent. Building relationships is what we do, and sometimes we need to do the extra step to determine the value therein.

I thank you for the discourse. It really helps shine a light on how something so small can be interpreted in different way. Thank you for your response once again Stu.