What is “quid pro quo” and Its Relationship to Fund-Raising Events?
Definition: “quid pro quo” is a payment made partly as a contribution and partly for goods and services provided to the donor by a charity. An example of quid pro quo contribution is where the donor pays a charity $100 to attend a dinner event. The market value for the food and entertainment is $40. This amount is NOT what the charity pays or the food and entertainment but rather the market value of those items. Accordingly, $60 would be a tax-deductible gift. An additional example is where a donor is promised a specific item in exchange for a gift, e.g. for each $100 contribution the donor will receive a $25 alumni directory; this results in a $75 gift.
