The USM Foundation may administer funds for activities such as dinners, theater programs, golf tournaments, etc., where the attendee is provided with a benefit in exchange for a contribution.
- Submit all literature advertising events to the attention of the USM Foundation Staff Accountant and Grant Administrator for review prior to printing the literature or it may be impossible for the USM Foundation to accept and deposit the funds. He/she will inform the department as to whether the literature meets the criteria or if it needs to be modified.
- Provide donors who attend with information regarding what portion of their payment is tax deductible when the total amount paid by them is $75 or more (per the Revenue Reconciliation Act of 1993). This is not per attendee, but the total amount of the check.
- All solicitation materials must include this information, per IRS rules.
- All solicitation and/or receipt literature must identify the gift and non-gift portion.
- `The non-gift portion represents the fair market value of any goods or services received by the person attending the event, not the cost. All benefits have a fair market value, even if the event costs the sponsoring department nothing (i.e., a donor is contributing all the food, entertainment, etc.) The fair market is determined by what it would cost an individual to purchase the item. In order to determine the fair market value of the benefit, the following items should be considered and a fair market value determined, when appropriate: (See Fair Market Value Worksheet)
- Meal $
- Entertainment $
- Favor/Gift $
- Activity (Golf/Tennis, etc.) $
- Speaker $
- IRS policy suggests the following language for your solicitation/receipt, which we recommend:
- “The amount of your contribution that is deductible for Federal income tax purposes is limited to the excess of the amount contributed by you over the value of the goods and services that you receive. We estimate the value of those goods and services to be $ and, therefore, you may deduct any
- `The non-gift portion represents the fair market value of any goods or services received by the person attending the event, not the cost. All benefits have a fair market value, even if the event costs the sponsoring department nothing (i.e., a donor is contributing all the food, entertainment, etc.) The fair market is determined by what it would cost an individual to purchase the item. In order to determine the fair market value of the benefit, the following items should be considered and a fair market value determined, when appropriate: (See Fair Market Value Worksheet)
contribution in excess of that amount.”
- When submitting requests to pay for expenses associated with a special fundraising event, use GL Code 4320.