On his first visit to the United States, Pope Francis turned heads with his mode of transportation: a black Fiat 500L. The 2015 Fiat 500L, roomier than the more popular Fiat 500 mini, sells for between just $20,000 and $24,695. The Pope also opted for a relatively modest version of the famous Popemobile, a retrofitted Jeep Wrangler also provided by Fiat Chrysler.
No bling, no sparkle, no luxury cars for Pope Francis, who dumped the Vatican’s Mercedes limos, telling his priests, in 2013, to buy “humble” cars, saying:
It hurts me when I see a priest or nun with the latest model car; you can’t do this. A car is necessary to a lot of work, but please, choose a more humble one. If you like the fancy one, just think about how many children are dying of hunger in the world.
And in contrast to Saudi King Salman’s visit to the United States earlier this month, when the entire Four Seasons in Georgetown was booked to accommodate the 1000 person entourage and decked out with red carpets (even in the garage) and gold furniture everywhere, the Pope opted for more modest accommodations. While in Philadelphia, the Pope and his entourage of just 59 people stayed in renovated dormitory rooms at St. Charles Borromeo Seminary.
While the dormitory rooms were indeed remodeled – to fit the “wish list” for the Pope – there weren’t any gold end tables in sight. Rather, renovations were modest. The Pope slept on a Stearns & Foster model bedframe from Macy’s with cotton sheets (350, not 1000, thread count). Macy’s also donated towel, shower curtains, dining tables, and lounge chairs and patio furniture, some from the Martha Stewart collection.
According to a Macy’s spokesperson, the Archdiocese of Philadelphia and the Seminary worked very closely with the Vatican on all aspects of planning for the Papal visit to Philadelphia. The department store was approached with the opportunity to help and, according to the spokesperson, the company was “honored to support the city of Philadelphia and the Seminary in preparation for this very special occasion.” A list of papal needs was provided by the Seminary and fulfilled by the Macy’s team. When choosing the items, the spokesperson noted, the team kept in mind that Pope Francis is known for his simplicity. Simplicity, the spokesperson noted, was their goal.
A spokesperson from the World Meeting of Families (WMOF) said, about the department store:
The generosity of the entire Macy’s team was really incredible. Each and every member of their team who assisted with the Seminary was a joy to work with and nothing was too much to ask. They volunteered to provide additional items above and beyond the “wish list” for Pope Francis’ visit including patio furniture, rugs and fresh plants. No detail went unnoticed, including washing sheets and making sure all linens were pressed and perfect. The team was extremely dedicated and went above and beyond to make sure that the Seminary was as beautiful as possible for His Holiness’ stay.
All of the items used for the Pope’s accommodations were donated by Macy’s and will remain at the Seminary even after the Pope’s historic visit. Additionally, a team from Macy’s performed the install at no cost, putting in approximately 450 hours of labor for design and installation.
The dorm rooms aren’t the only furnishings to be put in the place for Pope’s visit to Philadelphia. When the Pope stopped at Independence Hall on Saturday, His Holiness and four Cardinals sat in Thos. Moser Catena Arm Chairs with custom cushions. The Pope delivered his speech from behind Abraham Lincoln’s Gettysburg Address lectern, usually housed at Philadelphia’s Union League, reinforced by bracing made at the Thos. Moser workshop. And when the Pope says goodbye to the United States today, he’ll do so from a Harpswell Arm Chair with Back during his departure ceremony at the airport.
Moser says that his company was “honored to be asked” to be involved with the Pope’s visit, continuing, “To be a small part of this historic occasion is a privilege for the entire Thos. Moser team.”
WMOF Executive Director Donna Farrell noted that Thos. Moser was chosen to provide the chairs because “[i]n such an extraordinary setting, it was important that the chair selected for the Holy Father reflect the humility and simplicity by which he leads.”
More than a million people were expected to attend papal events in Philadelphia hosted by the WMOF with even more watching the coverage on television. That kind of publicity is hard to put a price tag on. But are there additional financial benefits to Macy’s, Thos. Moser and other companies which offered items to be used during or after the Pope’s visit?
Maybe. A corporation can generally claim a tax deduction for charitable contributions made in cash or other property. The contribution is deductible if made to, or for the use of, a qualified organization. But there is a limit: a corporation cannot deduct charitable contributions that exceed 10% of taxable income (excluding certain adjustments) for the tax year.
For contributions of property other than cash – like furnishings – a corporation like Macy’s, or company which is not a closely-held or a personal service corporation, must include a schedule describing the property and the method used to determine its fair market value with the corporation’s tax return (this is true even if, as is likely, you can’t deduct the full fair market value of the donations under corporate tax rules). In addition, the corporation should keep a record of the date and manner of acquisition of the donated property and the cost or other basis of the donated property held by the donor for less than 12 months prior to contribution. If the tax deduction claimed for donated property exceeds $5,000, the corporation must also complete a federal form 8283 and attach it to the corporation’s return. However, a closely held corporation like Thos. Moser, or personal services corporation, must complete and attach federal form 8283 to their returns if they claim a deduction of more than $500 for non-cash contributions.
A corporation must obtain a qualified appraisal for all deductions of property which exceed $5,000. But merchandise in stock may not need an appraisal: a qualified appraisal is not required for certain donations including inventory (also included: cash, publicly traded securities, any qualified vehicles sold by a donee organization without any significant intervening use or material improvement). The appraisal should be maintained with corporate records; you only need to attach it to the tax return if the deduction claimed exceeds $500,000 ($20,000 for donated artwork).
And sorry, Macy’s, but the cost of volunteer labor or services is never deductible for tax purposes even when it can be easily measured and valued.
To be clear, the tax breaks are the kinds of things that I think about. The actual dollars which might be saved by the companies involved in donating to St. Charles Borromeo Seminary, World Meeting of Families, Cathedral Basilica of Saints Peter and Paul and other charitable organizations haven’t been mentioned in conjunction with any of these donations. It’s often the case that tax and financial considerations don’t drive charitable donations: rather, charitable donations may be motivated by generosity and a genuine hope to make a difference. Those motivations would, I think, bring a smile to Pope Francis who has, during his papacy, encouraged such generosity.
