Fair Market Value

Our Finance department feels it's necessary to track the fmv (non-deductible portion) of a gift in a separate GL/fund.  I'm seriously concerned about how this will affect our reporting and acknowledgement system.  I'd like to know if ANY other organizations are doing this.  It comes out of a concern from our controller. 

I've done that in the past, but only for event tickets with a contribution attached--the non-deductible portion of each ticket got booked to the Elevated Event and associated fund, and the donation portion got booked into a regular contribution campaign. It's not ideal. Doing something like that for every gift seems like it would create a lot of additional overhead around gift entry, and it would make your Contribution tabs a lot less neat. Maybe you could set up premiums to attach to each gift that would reflect the FMV, and then you could use the Premiums report to let your finance team know the specifics on FMV vs total contributions?

That may not be helpful for you at all, but it's an interesting problem. I'd be interested to hear what solution you land on. Keep us posted!

I've already posted this in the FInance forum, but would like to post the question here as well:

Have any of you chosen to use funds associated with fair market value in gift entry?  In other words, have you or your finance department set up a fund to record the fair market value of a gift?  For example, a patron give $100,000.  $900 is fmv.  The gift is entered in 2 parts. Part one is the gift, part 2 the fmv.

Thanks

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I second Leslie's and your own concerns.

Ten years ago, we tracked one elevated event this way (it happened to be our 50th Anniversary Gala!). Ten years later, those "$96,000 gifts" still haunt me. We did it literally that ONE time, and it has just really made things unnecessarily difficult. The $100,000 people needed to be listed in the top donor society - and all of them were... except one. Oy. It got further complicated because directors who purchased $25,000 packages were booked at something like $24,300 and so for two years later they would show up on lists of patrons which were below what we projected them to give. 

Hindsight is 20/20, but I can tell you that I never did it that way again.