Tuesday, March 31, 2009

Donation Versus Payment

Sometimes we have confusion over what is considered a payment and what is considered a donation. Hopefully the following will help clarify any confusion.

We attempt to identify payments that come from Parents, friends, and other relatives to support students on these trips and when these payments are processed and there is no direct benefit received by the donor (they are not taking part in the actual trip), then the gift is noted as a tax-deductible donation when receipted.

If a student who is going on the trip and receiving a benefit of trip support in exchange for his payment, this is not considered a tax-deductible donation.

These are the guidelines that our University Business office has approved for audit purposes.

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