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major gifts
When Non-Cash Gifts Are Worth Cash
May 18th
When you give a friend money as a birthday gift it's appreciated, but there's always the thought that you could have been a little more creative. That's not really the case with nonprofits; money is one of the best gifts you can give.
But that doesn't mean it's the only gift.
Non-cash gifts, such as computer equipment or office supplies, can be very useful for nonprofits. Yet even though these items are not money, they still have cash value in the eyes of the Internal Revenue Service (IRS). IF that value is great enough, an organization might be required to substantiate the gift to the IRS.
In their book “Conducting a Successful Major Gifts and Planned Giving Program,” Kent E. Dove, Alan M. Spears, and Thomas W. Herbert explained that the need to file federal form 8283 also depends on the status of the taxpayer. They explained four instances that qualify, as well as which part of the form must be completed:
But that doesn't mean it's the only gift.
Non-cash gifts, such as computer equipment or office supplies, can be very useful for nonprofits. Yet even though these items are not money, they still have cash value in the eyes of the Internal Revenue Service (IRS). IF that value is great enough, an organization might be required to substantiate the gift to the IRS.
In their book “Conducting a Successful Major Gifts and Planned Giving Program,” Kent E. Dove, Alan M. Spears, and Thomas W. Herbert explained that the need to file federal form 8283 also depends on the status of the taxpayer. They explained four instances that qualify, as well as which part of the form must be completed:
- Non-cash gifts valued at $500 or less. The donor only has to complete federal Form 8283 for this type of gift if the person has made a series of gifts in a given year, each of which is valued at $500 or less but with a total value exceeding $500;
- Non-cash gifts valued between $501 and $5,000. Gifts in this range must be reported on Part A of IRS Form 8283, which is then attached to the donor’s federal income tax return;
- Non-cash gifts valued at more than $5,000. If the amount claimed as a charitable income tax deduction is in excess of this amount, the IRS requires the donor to complete Part B of Form 8283; and,
- Gifts of non-publicly traded stock. If the donor makes this type of gift, Part B of Form 8283 must be completed. This is true regardless of the value of the stock. A qualified appraisal is required if the value of the stock exceeds $10,000.
So remember: Just because your organization is getting a donation of something other than cash doesn't mean that there is no accounting work to be done.
National Museum Of Natural History Gets Major Donation
May 7th
David H. Koch, executive vice president of Koch Industries, has made his mark on National Museum of Natural History by donating $35 million to the Washington, D.C.-based museum.
The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.
Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.
This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.
The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.
You can read more about this story in The Washington Post.
The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.
Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.
This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.
The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.
You can read more about this story in The Washington Post.
Garth Brooks Gets His Donation Back
Feb 1st
An Oklahoma hospital has been ordered to pay $1 million to country singer Garth Brooks after failing to build a women's health center in honor of his late mother.
The details of the case were laid out in a story that originally appeared in the previous edition of NPT Weekly. Brooks donated $500,000 to Yukon, Okla.-based Integris Canadian Valley Region Hospital with the understanding that the gift would help fund a women's health center named after his mother, Colleen Brooks, who died in 1999. He filed a suit against the hospital after the center had been built without his mother's name attached. The jury ruled in favor of Brooks on Jan. 24, awarding him his original donation plus an additional $500,000 in punitive damages. A spokesperson for Integris said that the hospital does not expect to have to cut any services or programs in light of the settlement, as the money will not come from their operating budget.
This case shows the importance of the donor having a written agreement with the nonprofit when making a major gift. Jeffrey Tenenbaum, a nonprofit attorney at Venable LLP in Washington, D.C., told NPT that it's uncommon to have only a verbal agreement with the client. Said Tenenbaum: “This case is the perfect example of why verbal commitments do not work out.”
Tenenbaum goes on to say that the written agreement should lay out the dollar amount that will be paid, whether or not the contract is enforceable, and provide contingencies if the original purpose of the contribution cannot be fulfilled. While the case ultimately worked out in Brooks' favor, these steps are highly advisable to prevent legal issues like this from happening.
You can read the full story in The NonProfit Times.
The details of the case were laid out in a story that originally appeared in the previous edition of NPT Weekly. Brooks donated $500,000 to Yukon, Okla.-based Integris Canadian Valley Region Hospital with the understanding that the gift would help fund a women's health center named after his mother, Colleen Brooks, who died in 1999. He filed a suit against the hospital after the center had been built without his mother's name attached. The jury ruled in favor of Brooks on Jan. 24, awarding him his original donation plus an additional $500,000 in punitive damages. A spokesperson for Integris said that the hospital does not expect to have to cut any services or programs in light of the settlement, as the money will not come from their operating budget.
This case shows the importance of the donor having a written agreement with the nonprofit when making a major gift. Jeffrey Tenenbaum, a nonprofit attorney at Venable LLP in Washington, D.C., told NPT that it's uncommon to have only a verbal agreement with the client. Said Tenenbaum: “This case is the perfect example of why verbal commitments do not work out.”
Tenenbaum goes on to say that the written agreement should lay out the dollar amount that will be paid, whether or not the contract is enforceable, and provide contingencies if the original purpose of the contribution cannot be fulfilled. While the case ultimately worked out in Brooks' favor, these steps are highly advisable to prevent legal issues like this from happening.
You can read the full story in The NonProfit Times.
Ideas For Your Major Gift Ask
Dec 14th
Every nonprofit fundraiser's dream is to have a conversation with a major donor that goes so well, that the person writes you a check immediately. Too bad it's rarely that easy.
Yes, the major gift ask is one of those things that gets even experienced fundraisers a little antsy. It's all too easy for nerves to lead you to a critical error that can ruin the whole process. And then there's the second guessing. Did you ask too much? Too little? You'll drive yourself crazy if you allow these thoughts to take control. The reality is it's totally natural to have a little fear before prospecting for a major gift.
According to Rachel Muir, client strategy executive at Austin, Texas-based Convio, how you handle that fear will determine your success. She let The NonProfit Times in on some tips on how to better prepare for major gift asks:
We hope you have found these tips useful for your organization's prospecting efforts. Head to The NonProfit Times for more articles like this.
Yes, the major gift ask is one of those things that gets even experienced fundraisers a little antsy. It's all too easy for nerves to lead you to a critical error that can ruin the whole process. And then there's the second guessing. Did you ask too much? Too little? You'll drive yourself crazy if you allow these thoughts to take control. The reality is it's totally natural to have a little fear before prospecting for a major gift.
According to Rachel Muir, client strategy executive at Austin, Texas-based Convio, how you handle that fear will determine your success. She let The NonProfit Times in on some tips on how to better prepare for major gift asks:
- Make sure the prospect in question has been properly cultivated before asking for a major commitment. Think of it this way: You could ask someone to marry you on the first date, but it would be creepy and desperate. The same applies with your donors. You should be stewarding your donors with seven unique touches annually: a visit, a tour, prompt thank you’s, personal stories about your successes, newsletter, annual report, personal calls, etc. It's all about the courtship!
- Find out everything you can about your prospects. What are their interests? Where did they go to school? What are their giving patterns?
- Re-connect with your organization's mission. Why are you asking for money in the first place? Having a strong passion and commitment for your cause is a major selling point for donors.
- Consider doing your asks in pairs. Two is better than one, right?
- When it's time to make the ask, make sure it's in a setting where there will be minimal interruptions. You will want 20 to 30 minutes of the prospect's undivided attention. Suggestions for meetings spots could be their office or somewhere at your organization. Whatever you do, do not ask at a restaurant. This will guarantee you multiple interruptions.
- Describe the impact of your organization through the use of personal anecdotes. Focus on the benefit, impact, and vision.
- Do not use acronyms.
- Here's the most important thing to remember: After you make your ask, be silent. Give the prospect time to think. Continuing to talk after making your ask is a great way to talk yourself out of a gift.
We hope you have found these tips useful for your organization's prospecting efforts. Head to The NonProfit Times for more articles like this.
Jacksonville Jaguars Owners Stay, To Relief Of Charities
Nov 30th
When does the sale of a football team rock the nonprofit world? When the owners of said football team are major philanthropic figures in the community.
If you are a fan of the NFL, you are probably aware that the Jacksonville Jaguars sold the franchise yesterday. You might not be as aware that the owners of the team, Wayne and Delores Barr Weaver, are the most visible and active philanthropists in Jacksonville. In an article published yesterday in The Florida Times-Union, nonprofits reacted with relief that, despite the sale, the Weavers will be staying in Jacksonville.
Words like "Thank God" were thrown around by various nonprofit executives when The Florida Times-Union approached them with the news. And it's not just because of the money they donated ($55 million to local causes since the mid-90's) that has Florida charities thankful; the Weavers changed philanthropy in the city of Jacksonville. The couple donated $27 million to The Community Foundation in 2007, most of which went to agencies in need, but $11 million of it was used to create endowments for 22 local nonprofits. Until the Weaver's gift, few Jacksonville nonprofits were endowed.
It's because of stories like that why nonprofits were excited to learn the Weavers will continue to be active in Jacksonville philanthropy through the Weaver Family Foundation. Time will tell if the new ownership of the Jaguars will be able to turn the team back into contenders. But with all this uncertainty, at least nonprofits know that their favorite football owners are staying where they are.
Make sure to read the full article on the Weavers at The Florida Times-Union.
If you are a fan of the NFL, you are probably aware that the Jacksonville Jaguars sold the franchise yesterday. You might not be as aware that the owners of the team, Wayne and Delores Barr Weaver, are the most visible and active philanthropists in Jacksonville. In an article published yesterday in The Florida Times-Union, nonprofits reacted with relief that, despite the sale, the Weavers will be staying in Jacksonville.
Words like "Thank God" were thrown around by various nonprofit executives when The Florida Times-Union approached them with the news. And it's not just because of the money they donated ($55 million to local causes since the mid-90's) that has Florida charities thankful; the Weavers changed philanthropy in the city of Jacksonville. The couple donated $27 million to The Community Foundation in 2007, most of which went to agencies in need, but $11 million of it was used to create endowments for 22 local nonprofits. Until the Weaver's gift, few Jacksonville nonprofits were endowed.
It's because of stories like that why nonprofits were excited to learn the Weavers will continue to be active in Jacksonville philanthropy through the Weaver Family Foundation. Time will tell if the new ownership of the Jaguars will be able to turn the team back into contenders. But with all this uncertainty, at least nonprofits know that their favorite football owners are staying where they are.
Make sure to read the full article on the Weavers at The Florida Times-Union.
DC School Sports Saved By Anonymous Donation
Jun 30th
Note: This is a summary of a story from an outside news organization. Follow the links in the post to read the full article.
Sports in Washington D.C.'s public schools had been going through some tough times. Faced with a 28% budget cut, they were suddenly saved by an anonymous $1.5-million donation. According to a story in The Washington Examiner, the money went to the D.C. Public Education Fund, a nonprofit dedicated to finding money for public schools in the District. This new influx of cash will allow the school to purchase new athletic equipment and add sports programs for girls.
The Examiner story states that school officials became aware of the donation during the fiscal year, so some parents and community members are frustrated that they weren't made aware of the donation after spending countless hours fundraising. The D.C. Public Education Fund explained that they don't publicize a gift when the donor wishes to remain anonymous. Even though the donation is sure to boost sports in D.C.'s public schools, some parents are still not sure whether they will cancel their fundraising plans. They are skeptical of the secretive nature of the donation, and want to know the plans are for next year's budget.
If you are interested in reading the rest of this story, visit the website of The Washington Examiner.
Sports in Washington D.C.'s public schools had been going through some tough times. Faced with a 28% budget cut, they were suddenly saved by an anonymous $1.5-million donation. According to a story in The Washington Examiner, the money went to the D.C. Public Education Fund, a nonprofit dedicated to finding money for public schools in the District. This new influx of cash will allow the school to purchase new athletic equipment and add sports programs for girls.
The Examiner story states that school officials became aware of the donation during the fiscal year, so some parents and community members are frustrated that they weren't made aware of the donation after spending countless hours fundraising. The D.C. Public Education Fund explained that they don't publicize a gift when the donor wishes to remain anonymous. Even though the donation is sure to boost sports in D.C.'s public schools, some parents are still not sure whether they will cancel their fundraising plans. They are skeptical of the secretive nature of the donation, and want to know the plans are for next year's budget.
If you are interested in reading the rest of this story, visit the website of The Washington Examiner.
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