V. Source of a Gift

Who provides the gift is just as important as what the gift is and why it was given. It is your responsibility to determine who the source of the gift is. If a person is using their own personal funds to provide your gift, that person is the gift’s source. But, if the person will be reimbursed or receive a tax deduction for your gift, that person is not providing a personal gift. If a company, foreign government, or domestic government ultimately pays for your gift, that company, foreign government, or domestic government is the gift’s source. If someone is merely passing along a gift from another person, the person passing along the gift is not the relevant source.

If a person affiliated with a company gives you a gift, both the person and the company are the gift’s sources.

Example. Your best friend’s father works for a company with a corporate apartment. The company allows its employees to stay there while in town for business, but not for any personal use such as a vacation. The company instructs your best friend’s father to offer the apartment to you the next time you are in town. The company, not your best friend’s father, is the gift’s source.

If multiple people or organizations give you a gift, the gift is from all of the sources collectively. You may not divide the value of a gift between sources to try to fit the gift into an exception to the Gift Rule.

Example. Two nonprofit organizations that do not employ or retain registered federal lobbyists give you a gift worth $70. You may not divide the gift’s value between the organizations to say each organization gave you a gift worth $35. The gift’s total value is $70.