Here are a few things to remember when dealing with contributions that are tied to some other type of benefit:
- A premium amount is the fair market value of an item. It has nothing to do with the cost to UAB.
- A donor can decline a benefit at the time the contribution is made for the entire contribution to be tax deductible.
- Token items can be given as appreciation to certain contributions and not be considered as a benefit that reduces the tax deductibility of the contribution.
- Premium amounts must be listed on all giving pages.
These outline just a few basic notes regarding premiums and benefits. Gift Records is well-versed in IRS and UAB policies regarding these types of contributions. Including them in the conversation at the onset of your planning is imperative to ensure our donors are receipted, recognized, and communicated with properly regarding the nature of their contribution.
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