March 20, 2018

Tax Law Changes

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Eligible & Ineligible Gift Types
FAQs
Example Scenarios

KEY POINTS

  • The tax law that went into effect on January 1, 2018, eliminated a provision that allowed individuals to deduct 80% of their charitable contributions connected to the right to purchase athletics tickets.
  • As a result, for Buckeye Club members and President’s Club donors, the non-deductible portion of their contribution has increased from $300 to $1,500 for the opportunity to purchase football tickets. Contributions above and beyond the $1,500 non-deductible portion, with no other associated return benefits will be considered as charitable.
  • We encourage donors to consult with their tax advisors regarding these changes to determine what makes the most sense for them.
  • For President’s Club donors eligible for football ticket benefits, at least $3,000 in personal giving is required.

Eligible and Ineligible Gift Types

Certain payments will not count toward football ticket eligibility. Below are specific examples of giving that are eligible and ineligible for benefits:

Eligible Payment Types for the Football Ticket Benefit

    • Personal cash, check or credit card gift
    • Gift-in-kind
    • Matching gift*
    • Stock transfer**

* Matching gifts are accepted for Buckeye Club.
** Donors of stock are advised to consult their personal tax advisors regarding the deductibility of such gifts. The value of the return football ticket benefit may result in the recognition of income to the donor.

Ineligible Payment Types for the Football Ticket Benefit

    • Donor-advised fund gift*
    • Private foundation gift
    • Third-party gift (e.g. United Way, Benevity, etc.)**
    • Matching gifts***
    • Charitable IRA Rollovers and GIK for services

* IRS guidance from December no longer allows bifurcation of DAF gifts.
** Donors utilizing third-party payments are advised to consult the organization to confirm their policy related to payments that are no longer considered charitable.
*** No longer accepted for President’s Club football ticket eligibility.


FAQs

How does the tax law impact my giving related to the opportunity to purchase football tickets?
Prior to January 1, 2018, donors were able to deduct 80 percent of their charitable contributions connected to the right to purchase athletics tickets. Effective January 1, 2018, donors may no longer deduct any portion as a contribution.

The opportunity to purchase two season football tickets has a value of $1,500, which is the minimum amount required for most donors to access season football tickets. This means that $1,500 of any payments made towards qualifying to purchase season football tickets is not tax deductible. Contributions above and beyond the $1,500 non-deductible portion, with no other associated return benefits will be charitable and may be deductible, depending on a donor’s personal tax situation.

For President’s Club donor eligibility, at least $3,000 in personal giving is still required and includes the opportunity to purchase two season football tickets.

Why has the non-deductible portion of my gift increased from $300 to $1,500?
The value of the opportunity to purchase season football tickets equals the full amount of a Scarlet and Gray Level Buckeye Club membership, which is $1,500. Previous tax law allowed donors to deduct 80% of that amount, which meant that the non-deductible portion of such a contribution was $300. The new tax law says that no portion of such a contribution is deductible, which means that the non-deductible portion is now $1,500.

If I made my gift to the Buckeye Club or President’s Club in 2017, am I impacted by this change?
You will not be impacted in regard to your 2017 gift, as the new tax provision applies only to donations made on or after January 1, 2018.

If I made my gift in 2018 before you announced these changes, what does this mean for me?
The tax legislation went into effect on January 1, 2018. If you no longer wish to give, any donor who made gifts prior to our communication regarding this policy change in March 2018 can contact us for a refund.

If I am a premium seat or suite holder, how will this impact my account?
The value of the opportunity to purchase premium seats or a suite equals the full amount that you pay. Premium seats include all Club Seats, PSL’s and Hardwood Club Seats. Suites would include all suites at Ohio Stadium and the Schottenstein Center. Therefore, the entire amount paid for the premium seats and suites is now 100% non-deductible.

What if I’m a Varsity O Football, Letterwinners or Recent Graduate Level member of the Buckeye Club, am I impacted by this change?
The value of the opportunity to purchase season football tickets equals the full amount of the Buckeye Club membership that you pay. For Varsity O Football, the $50 payment is non-deductible. For Letterwinners Level and Recent Graduate Level members the $250 payment is non-deductible. Any amount above those qualifying levels would be considered charitable.

How will these changes affect my points?
We are currently looking at how this will impact points for the 2019 season. There will be no change to 2018 points and as we finalize more details, we will communicate that information.

Where will the non-deductible payment go?
The non-deductible Buckeye Club payment for the football ticket benefit will continue to support Athletics and the non-deductible portion of the President’s Club payment will continue to support the area(s) of your choice.

Does this change affect my ability to use a matching gift?
If you are a Buckeye Club member, you can continue to use matching gifts to make your qualifying contribution. Most companies only match charitable contributions. We would encourage you to contact your company’s HR department to confirm their policy related to matching gifts due to the recent tax changes.

President’s Club members will no longer be able to use matching gifts to qualify for President’s Club football ticket eligibility.

Does this change affect my ability to pay from a Donor Advised Fund (DAF) or private foundation?
Yes. IRS guidance from December 2017 no longer allows bifurcation of DAF or foundation gifts. If no benefits are accepted, you can still pay from a DAF or private foundation for Buckeye Club membership or to be recognized in the President’s Club.

Does this change affect my ability to pay with stock transfers?
No. We advise you to consult your personal tax advisor regarding the deductibility of such gifts. The value of the return football ticket benefit may result in the recognition of income to the donor.

Does this change affect my ability to pay with a third-party gift (e.g. United Way, Benevity, etc)?
Yes. We advise you to consult the third party organization to confirm their policy related to payments that are no longer considered charitable.

I don’t accept the football ticket benefit, what does this mean for me?
If you do not accept the ticket benefit, your giving is not impacted. It remains charitable at 100% assuming you do not receive any other return benefits in exchange for your giving.

I’m a lifetime President’s Club donor, what does this mean for me?
This change does not impact lifetime President’s Club donors because the contributions that made those donors eligible for lifetime access to football tickets and other recognition were made prior to the enactment of the new tax law. Even if you continue to give $3,000 or more, all of your giving will still be considered charitable, provided you did not receive some other return benefit as a result of your giving.

Will there be changes to how I accept or decline the football ticket benefit if I’m a President’s Club donor?
Should your giving be eligible, there will be a new process to accept or decline the football ticket benefit. More details will be shared.

What happens to my parking benefit?
The right to purchase a football parking pass is a return benefit that will further reduce the deductible portion of the donor’s personal contribution, based on the value of the parking location. Donors who give at the $3,000 level and accept the parking benefit will not be able to deduct an additional $60 of their gift; Donors who give at $5,000 or higher will not be able to deduct an additional $75 of their gift.

Who do I contact for questions that may not be answered on this website?
You may contact the Buckeye Club at (614) 292-9908 or the President’s Club at (614) 292-9550 for more information.


Example Scenarios

  1. A donor who gives $1,500 to the Buckeye Club, to qualify for 2 season football tickets:
    • Donor’s payment is 100% non-deductible
    • Donor is a Buckeye Club member eligible for all other Buckeye Club benefits
  2. A donor who gives $3,000 to be a Buckeye Club member:
    • A. If the donor is purchasing 2 Scarlet & Gray Level memberships, to qualify for 4 season football tickets:
      • Donor’s full payment is 100% non-deductible
    • B. If the donor is purchasing 1 Big Ten Championship Level membership, to qualify for 2 season football tickets and 1 non-proximity parking pass:
      • $1,500 is the payment and $60 is the benefit for parking
      • Therefore, $3,000-$1,560 = $1,440 is considered charitable ($1,560 is non-deductible)
  3. A donor gives $3,000 to the Buckeye Club to qualify for their Club Seats and proximity parking:
    • Donor’s payment is 100% non-deductible
    • The Club Seat payment is also 100% non-deductible
  4. A donor who personally gives $3,000 to be a President’s Club donor, to qualify for 2 season football tickets and 1 non-proximity parking pass:
    • $1,500 is the payment and $60 is the benefit for parking
    • Therefore, $3,000-$1,560 = $1,440 is considered charitable ($1,560 is non-deductible)
  5. A donor who personally gives $5,000 to be a Buckeye Club or President’s Club donor, to qualify for 2 season football tickets and 1 proximity parking pass:
    • $1,500 is the payment and $75 is the benefit for parking
    • Therefore, $5,000-$1,575 = $3,425 is considered charitable ($1,575 is non-deductible)
  6. A donor who gives a total of $4,500 to the Buckeye Club and President’s Club ($1,500 to the Buckeye Club, to qualify for 2 season football tickets and $3,000 to be a President’s Club donor, to qualify for 2 season football tickets and 1 non-proximity parking pass):
    • $3,000 is the payment for all 4 tickets and $60 is the benefit for parking
    • Therefore, $4,500-$3,060 = $1,440 is considered charitable ($3,060 is non-deductible)
  7. A donor who gives $3,000 and is also a lifetime President’s Club donor.
    • If the donor accepts the non-proximity parking benefit, $60 of this gift is non-deductible
    • If the donor does not accept the parking benefit, the entire amount is 100% deductible