Waiving Tuition in Exchange for Professional Services

by Mary
(Texas )

We are a non profit organization 501 c3, religious, catholic private school who receives tuition fees from the enrolled students.

We have a parent that will be providing the school with a professional service of photography and video for free for the school. However, we will be waiving the tuition fees for his children.

How do we handle this type of transaction?

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Sep 25, 2017
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It's not a donation
by: Anonymous

Keep it simple and clean as transactions.
1. Have the parent pay for his child's tuition (e.g., $3500).
2. Turn around a cut a check (e.g., for $3500) as payment for services rendered.

No use going through the hoops of trying to put a valuation of a donation of service or having the parent try to claim it as a deduction, because it doesn't qualify as a contribution. It's quid pro quo exchange for goods and services.

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