THE CHARITABLE TAX DEDUCTION

On March 11, Prof Linda Sugin of Fordham University wrote a provocative op-ed in The New York Times, "Your Name on a Building and a Tax Break Too, Re--thinking Taxes and David Geffen's Gift for Avery Fisher Hall."  The thrust of her piece is that a donor’s name on a building should be treated as a major return benefit to that donor and therefore the gift's deductibility should be reduced by the "value" conferred, in this instance $15 million, the amount the Philharmonic paid the Fisher family to surrender the name.

As a career nonprofit fundraiser, I salute Professor Sugin's attempt to encourage even more philanthropy and tax justice, and I reject her well-intended proposal to do that through changes to the charitable tax code. She theorizes that future philanthropists would give more if current ones were incentivized to forego or foreshorten a naming opportunity in appreciation for their gift - or in exchange for it, as Sugin has it. 

For most nonprofits, creative presentation of untaxed "intangible" benefits for bigger gifts--with recognition being the most powerful--represent success or failure. In practice, many institutions are already encouraging short-term naming opportunities, for just the reasons Sugin gives. Would they be helped with new laws? Be careful what you wish for. First, limits on naming terms won't work with some (desperately needed) prospects, and second, why stop there? Once the IRS is allowed to start valuing intangibles, look out. That is my main point. Clear and just as it may seem, there is no little fix and it won't stay put. As federal codes and then each state attempt to place a taxable value on a wide range of ever-creative intangible recognition benefits, all representing different circumstances, the process risks introducing serious confusions and complexities, and, I'd predict, vigorously renewed attempts to eliminate the charitable deduction altogether. Confusion and complexity depress giving in a charitable heartbeat. 

-- Marilyn Bancel

The O

MARILYN BANCEL REJOINS ORAM

MARILYN BANCEL has rejoined The Oram Group as partner and director of our San Francisco-based West Coast office, following two and a half years as in-house development director at CuriOdyssey Museum, a former Oram client. 

She has long been active with the Association of Fundraising Professionals Golden Gate Chapter, for which she has served as board member and officer and as chair of various programs and events, serving in 2000 and 2009 as co-chair of National Philanthropy Day. Marilyn is a recipient of the chapter’s Hank Rosso Outstanding Fundraising Executive Award (2002). In addition to consulting, Marilyn has been Adjunct Professor at the University of San Francisco where she has taught Capital Campaigns and Major Gifts in the College of Professional Studies, Institute of Nonprofit Management. She is author of the long-popular workbook, Preparing Your Capital Campaign (Jossey Bass/Wiley 2000).

Marilyn’s current client focus includes all facets of the work needed to position an organization to conduct major gift fund-raising and campaigns — feasibility and planning studies, organizational analysis, board development, prospect engagement, and strategic or institutional planning. In addition to CuriOdyssey other clients have included San Francisco Girls Chorus, World Arts West, Boys and Girls Clubs of San Francisco, California Academy of Sciences, Glide Foundation, Headlands Center for the Arts, Human Rights Campaign, Peninsula Interfaith Action, National Foster Youth Action Network, Bar Association of San Francisco, Raphael House, Synergy School, Spirit Rock Meditation Center, University of California Press Foundation, Population Action International, United Religions Initiative, and many others.    

Prior to joining Oram, Marilyn worked for fifteen years as an institutional fund-raiser—as director of development for The Exploratorium, a museum of science, art and technology - and an Oram client served  by Oram partner  Hank Goldstein. She was also director of development for The Oakland Symphony; and as founder and executive director of East Bay Performance, Inc., publisher of the bi-weekly journal Bay Arts Review. Before entering the non-profit field, she lived for three years in Turkey where she operated an 80-person cottage craft and clothing export business.