[Publib] A question for you

[Andrea Berstler - Director]

How would this program be different from many of the Adopt A Book programs
that are in numerous libraries across the county? We use one in ours and
have considered the funds given as donations, much the same way that you
donation to any other non-profit often has a return "gift" attached to it.  

 

I would second the "ask a tax accountant" advice. (I am not a tax accountant
but I did stay in a Holiday Inn Express)  however -  I think that this may
fall under this section of the IRS code - 

Contributions to Donor Advised Funds

You cannot deduct a contribution to a donor advised fund after February 13,
2007, if: 

*         The qualified organization that sponsors the fund is a war
veterans' organization, a fraternal society, or a nonprofit cemetery
company, or 

*         You do not have an acknowledgment from that sponsoring
organization that it has exclusive legal control over the assets
contributed. 

There are also other circumstances in which you cannot deduct your
contribution to a donor advised fund. 

Generally, a donor advised fund is a fund or account in which a donor can,
because of being a donor, advise the fund how to distribute or invest
amounts held in the fund. For details, see Internal Revenue Code section
170(f)(18).   (http://www.irs.gov/publications/p526/ar02.html#d0e1297 )

 I think perhaps the wording in your "agreement" with the patrons may be the
biggest hurdle in this -(i.e. the library has the right to change or replace
the title requested with a title of equal or greater value . . . )  - Please
share with the list if you find out anything

Andrea

Andrea Berstler - Director

The Village Library of Morgantown

 

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From: publib-bounces at webjunction.org [mailto:publib-bounces at webjunction.org]
On Behalf Of Judith Turner
Sent: Saturday, May 03, 2008 8:48 AM
To: publib at webjunction.org
Subject: Re: [Publib] A question for you

 

Hi Monica -- 

As I understand the rules governing charitable deductions, I'd say the
Internal Revenue Service would disallow the patron's tax deduction for the
donation.  Donations have to be unrestricted and since the item acquired
with the funds is going to be restricted to the donor's use for a period of
time, it would not meet that test.

If an IRS auditor feels it's a sufficiently serious violation of the tax
code, and if a scapegoat is need to create an example to stop the practice,
the IRS could revoke the library's (or Friends of the Library group's) tax
exempt status.

Check with an accountant or tax expert before proceeding further.

Judy Turner
Whitefish Bay, WI


Monica Casanova <mcasanova at monticello.lib.in.us> wrote:

"Patrons who are interested in a newly published book be given the
opportunity to donate the price of the book for the privilege of being first
to borrow it."

 

  

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