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#2268139 - 03/24/22 02:43 AM CRA credit - donation?
Baker Offline
Platinum Poster
Joined: Nov 2005
Posts: 777
Washington State
If we donate to a non-profit that serves low to moderate income and they put our name on a banner or in a pamphlet does that exclude it from being counted as a CRA donation?

For example, housing authority that provides housing for low income individuals puts on a fund raising event in which we donate funds to to help support their fund raiser. They put our name in a pamphlet is that considered PR and not applicable for CRA credit?

Donate to a school where majority of students receive free or reduced lunches and they put our name on a banner does that not count?

I guess the controllers listed it on their list as "PR" for public relations and now the examiners are saying it doesn't count.

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#2268147 - 03/24/22 01:16 PM Re: CRA credit - donation? Baker
Inherent_Risk Offline
Gold Star
Joined: Jan 2017
Posts: 358
I would say a majority of CD donations have a secondary purpose of PR. Assuming these are otherwise CD donations where the donors are listed somewhere, I am curious what they are pointing to in excluding these items.

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#2268149 - 03/24/22 01:24 PM Re: CRA credit - donation? Baker
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 78,958
Galveston, TX
I would be a little confused also. For what other purpose does a business give a charitable donation if it is not for "public relations". I fail to see how an accounting entry title has any impact on the nature of the donation. If you give a group $5,000 and then they happen to thank you in a brochure that they produced, I find it hard to believe that nullifies the donation.
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#2268641 - 04/04/22 02:58 PM Re: CRA credit - donation? Baker
Lori01 Offline
100 Club
Joined: Jan 2007
Posts: 145
You may have to show documentation, usually from the original request, that shows the money is being used to fund the work that the organization does. I also agree that almost all our donations have some sort of PR offer attached to them.

However, I would also point out this is a classic example of sharing too much information with the examiners. They really don't need to know which GL the accounting department charges a "donation" to. As CRA Officers we should be double checking everything we give to the examiners and making sure they are provided what they need, but not what they don't need.

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#2268664 - 04/04/22 11:15 PM Re: CRA credit - donation? Baker
Len S Offline
Diamond Poster
Joined: Oct 2004
Posts: 1,915
Don't worry about losing credit if your contribution is recognized by the organization. Ideally, you want that recognition to show to examiners.
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