I think the initial posting suggested that the letter to the donor would offer the option of redirecting the gift to another project or returning the gift. The long and the short is that the institution is not responsible to figure out the tax consequences in advance of the letter. In fact, we usually are advised to steer clear of offering tax consequence advice to our donors. Ultimately it is up to them to make the arrangements with the IRS and we should not offer advice. It's too conflictive.

 

I have appreciated this thread, however, as I think this is a situation that many institutions have been in or will find themselves in at one point or another. It's a little bit like the conversations about appraisals!

 

Sharon Duane Koomler

Director of the Museum

Shaker Museum and Library

Old Chatham, NY