FundSvcs Community

Hello all -- We have an auction item that was purchased for less than the FMV, and the donor has sent us a check drawn on his Fidelity DAF for the purchase price. I am finding this problematic -- no tax-exempt component to this gift. On another note -- would the situation be different if the donor had drawn a check against a family foundation? I do not fully understand the differences between family foundations and DAFs. Would very much appreciate clarity on this as well. Many thanks, Irene *Irene Colford * Director, Advancement Services Tel: 203 532 3160 <203%20532%203176> *Sacred Heart Greenwich* 1177 King St./Greenwich, Connecticut 06831 *www.cshgreenwich.org* <http://www.cshgreenwich.org/>

A gift from a DAF, as well as a private foundation, must be used for charitable purposes with now benefit enuring to any individual. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 1:33 PM Irene Colford < 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > Hello all -- We have an auction item that was purchased for less than the > FMV, and the donor has sent us a check drawn on his Fidelity DAF for the > purchase price. I am finding this problematic -- no tax-exempt component > to this gift. > > On another note -- would the situation be different if the donor had drawn > a check against a family foundation? I do not fully understand the > differences between family foundations and DAFs. Would very much > appreciate clarity on this as well. > > Many thanks, > Irene > > *Irene Colford * > Director, Advancement Services > Tel: 203 532 3160 <203%20532%203176> > > *Sacred Heart Greenwich* > 1177 King St./Greenwich, Connecticut 06831 > *www.cshgreenwich.org* <http://www.cshgreenwich.org/> > >

John, thank you so much. I have read your white paper on bifurcated payments. But I am being told that DAF rules were changed in 2019 -- e.g., now allowing DAFs to be used to satisfy pledge payments. And I am being questioned as to whether DAFs can now also be used as payment in which the individual directing the DAF payment has received value (as in the less-than-FMV auction item at hand). I am googling IRS publications, but cannot find anything to defend or counter this. I have a check from a Fidelity DAF, and the qualifying language prohibits accepting the check if value was provided, but I am being told that the Fidelity language is outdated. On Wed, May 29, 2019 at 1:40 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > A gift from a DAF, as well as a private foundation, must be used for > charitable purposes with now benefit enuring to any individual. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Wed, May 29, 2019 at 1:33 PM Irene Colford < > 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > >> Hello all -- We have an auction item that was purchased for less than the >> FMV, and the donor has sent us a check drawn on his Fidelity DAF for the >> purchase price. I am finding this problematic -- no tax-exempt component >> to this gift. >> >> On another note -- would the situation be different if the donor had >> drawn a check against a family foundation? I do not fully understand the >> differences between family foundations and DAFs. Would very much >> appreciate clarity on this as well. >> >> Many thanks, >> Irene >> >> *Irene Colford * >> Director, Advancement Services >> Tel: 203 532 3160 <203%20532%203176> >> >> *Sacred Heart Greenwich* >> 1177 King St./Greenwich, Connecticut 06831 >> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >> >>

You are being given the full background. There was an IRS Notice issued that would allow pledge payments in very specialized situations but NEVER when the DAF grant request material states otherwise and only when the DAF has no idea that a gift was being used to pay a pledge. But buying auction items is not the same as paying a charitable pledge so please do not confuse the two. The IRS notice did not say anything about non-charitable purposes or benefits. Someone is misleading you. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 1:52 PM Irene Colford < 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > John, thank you so much. I have read your white paper on bifurcated > payments. But I am being told that DAF rules were changed in 2019 -- e.g., > now allowing DAFs to be used to satisfy pledge payments. > > And I am being questioned as to whether DAFs can now also be used as > payment in which the individual directing the DAF payment has received > value (as in the less-than-FMV auction item at hand). I am googling IRS > publications, but cannot find anything to defend or counter this. I have a > check from a Fidelity DAF, and the qualifying language prohibits accepting > the check if value was provided, but I am being told that the Fidelity > language is outdated. > > > On Wed, May 29, 2019 at 1:40 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> A gift from a DAF, as well as a private foundation, must be used for >> charitable purposes with now benefit enuring to any individual. >> >> John >> >> John H. Taylor >> Principal, John H. Taylor Consulting >> 2604 Sevier St. >> Durham, NC 27705 >> johntaylorconsulting@gmail.com >> 919.816.5903 (cell/text) >> >> Serving the Advancement Community Since 1987 >> >> >> On Wed, May 29, 2019 at 1:33 PM Irene Colford < >> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >> >>> Hello all -- We have an auction item that was purchased for less than >>> the FMV, and the donor has sent us a check drawn on his Fidelity DAF for >>> the purchase price. I am finding this problematic -- no tax-exempt >>> component to this gift. >>> >>> On another note -- would the situation be different if the donor had >>> drawn a check against a family foundation? I do not fully understand the >>> differences between family foundations and DAFs. Would very much >>> appreciate clarity on this as well. >>> >>> Many thanks, >>> Irene >>> >>> *Irene Colford * >>> Director, Advancement Services >>> Tel: 203 532 3160 <203%20532%203176> >>> >>> *Sacred Heart Greenwich* >>> 1177 King St./Greenwich, Connecticut 06831 >>> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >>> >>>

Many thanks, John. Could you please direct me to the applicable IRS document(s)? I am under some pressure and have not succeeded in my IRS search. On Wed, May 29, 2019 at 1:57 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > You are being given the full background. There was an IRS Notice issued > that would allow pledge payments in very specialized situations but NEVER > when the DAF grant request material states otherwise and only when the DAF > has no idea that a gift was being used to pay a pledge. > > But buying auction items is not the same as paying a charitable pledge so > please do not confuse the two. The IRS notice did not say anything about > non-charitable purposes or benefits. Someone is misleading you. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Wed, May 29, 2019 at 1:52 PM Irene Colford < > 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > >> John, thank you so much. I have read your white paper on bifurcated >> payments. But I am being told that DAF rules were changed in 2019 -- e.g., >> now allowing DAFs to be used to satisfy pledge payments. >> >> And I am being questioned as to whether DAFs can now also be used as >> payment in which the individual directing the DAF payment has received >> value (as in the less-than-FMV auction item at hand). I am googling IRS >> publications, but cannot find anything to defend or counter this. I have a >> check from a Fidelity DAF, and the qualifying language prohibits accepting >> the check if value was provided, but I am being told that the Fidelity >> language is outdated. >> >> >> On Wed, May 29, 2019 at 1:40 PM John Taylor < >> johntaylorconsulting@gmail.com> wrote: >> >>> A gift from a DAF, as well as a private foundation, must be used for >>> charitable purposes with now benefit enuring to any individual. >>> >>> John >>> >>> John H. Taylor >>> Principal, John H. Taylor Consulting >>> 2604 Sevier St. >>> Durham, NC 27705 >>> johntaylorconsulting@gmail.com >>> 919.816.5903 (cell/text) >>> >>> Serving the Advancement Community Since 1987 >>> >>> >>> On Wed, May 29, 2019 at 1:33 PM Irene Colford < >>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>> >>>> Hello all -- We have an auction item that was purchased for less than >>>> the FMV, and the donor has sent us a check drawn on his Fidelity DAF for >>>> the purchase price. I am finding this problematic -- no tax-exempt >>>> component to this gift. >>>> >>>> On another note -- would the situation be different if the donor had >>>> drawn a check against a family foundation? I do not fully understand the >>>> differences between family foundations and DAFs. Would very much >>>> appreciate clarity on this as well. >>>> >>>> Many thanks, >>>> Irene >>>> >>>> *Irene Colford * >>>> Director, Advancement Services >>>> Tel: 203 532 3160 <203%20532%203176> >>>> >>>> *Sacred Heart Greenwich* >>>> 1177 King St./Greenwich, Connecticut 06831 >>>> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >>>> >>>>

It is on the download site and referenced in my white paper found there as well. It is attached as well. Understand that this was an IRS Notice out for public comment - the comment period for which expired over one year ago. The notice authorized the use of DAF gifts as pledge payments under three circumstances while the IRS reviews those comments. No final ruling has been issued. And ALL of the major DAF providers continue to refuse the use of their gifts as pledge payments and require individuals to certify to that when applying for a grant. And none of this applies to private foundations - only DAFs. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 2:19 PM Irene Colford < 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > Many thanks, John. Could you please direct me to the applicable IRS > document(s)? I am under some pressure and have not succeeded in my IRS > search. > > > > > > On Wed, May 29, 2019 at 1:57 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> You are being given the full background. There was an IRS Notice issued >> that would allow pledge payments in very specialized situations but NEVER >> when the DAF grant request material states otherwise and only when the DAF >> has no idea that a gift was being used to pay a pledge. >> >> But buying auction items is not the same as paying a charitable pledge so >> please do not confuse the two. The IRS notice did not say anything about >> non-charitable purposes or benefits. Someone is misleading you. >> >> John >> >> John H. Taylor >> Principal, John H. Taylor Consulting >> 2604 Sevier St. >> Durham, NC 27705 >> johntaylorconsulting@gmail.com >> 919.816.5903 (cell/text) >> >> Serving the Advancement Community Since 1987 >> >> >> On Wed, May 29, 2019 at 1:52 PM Irene Colford < >> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >> >>> John, thank you so much. I have read your white paper on bifurcated >>> payments. But I am being told that DAF rules were changed in 2019 -- e.g., >>> now allowing DAFs to be used to satisfy pledge payments. >>> >>> And I am being questioned as to whether DAFs can now also be used as >>> payment in which the individual directing the DAF payment has received >>> value (as in the less-than-FMV auction item at hand). I am googling IRS >>> publications, but cannot find anything to defend or counter this. I have a >>> check from a Fidelity DAF, and the qualifying language prohibits accepting >>> the check if value was provided, but I am being told that the Fidelity >>> language is outdated. >>> >>> >>> On Wed, May 29, 2019 at 1:40 PM John Taylor < >>> johntaylorconsulting@gmail.com> wrote: >>> >>>> A gift from a DAF, as well as a private foundation, must be used for >>>> charitable purposes with now benefit enuring to any individual. >>>> >>>> John >>>> >>>> John H. Taylor >>>> Principal, John H. Taylor Consulting >>>> 2604 Sevier St. >>>> Durham, NC 27705 >>>> johntaylorconsulting@gmail.com >>>> 919.816.5903 (cell/text) >>>> >>>> Serving the Advancement Community Since 1987 >>>> >>>> >>>> On Wed, May 29, 2019 at 1:33 PM Irene Colford < >>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>> >>>>> Hello all -- We have an auction item that was purchased for less than >>>>> the FMV, and the donor has sent us a check drawn on his Fidelity DAF for >>>>> the purchase price. I am finding this problematic -- no tax-exempt >>>>> component to this gift. >>>>> >>>>> On another note -- would the situation be different if the donor had >>>>> drawn a check against a family foundation? I do not fully understand the >>>>> differences between family foundations and DAFs. Would very much >>>>> appreciate clarity on this as well. >>>>> >>>>> Many thanks, >>>>> Irene >>>>> >>>>> *Irene Colford * >>>>> Director, Advancement Services >>>>> Tel: 203 532 3160 <203%20532%203176> >>>>> >>>>> *Sacred Heart Greenwich* >>>>> 1177 King St./Greenwich, Connecticut 06831 >>>>> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >>>>> >>>>>

Sincerest thanks. Irene On Wed, May 29, 2019 at 2:31 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > It is on the download site and referenced in my white paper found there as > well. It is attached as well. > > Understand that this was an IRS Notice out for public comment - the > comment period for which expired over one year ago. The notice authorized > the use of DAF gifts as pledge payments under three circumstances while the > IRS reviews those comments. No final ruling has been issued. And ALL of > the major DAF providers continue to refuse the use of their gifts as pledge > payments and require individuals to certify to that when applying for a > grant. > > And none of this applies to private foundations - only DAFs. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Wed, May 29, 2019 at 2:19 PM Irene Colford < > 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > >> Many thanks, John. Could you please direct me to the applicable IRS >> document(s)? I am under some pressure and have not succeeded in my IRS >> search. >> >> >> >> >> >> On Wed, May 29, 2019 at 1:57 PM John Taylor < >> johntaylorconsulting@gmail.com> wrote: >> >>> You are being given the full background. There was an IRS Notice issued >>> that would allow pledge payments in very specialized situations but NEVER >>> when the DAF grant request material states otherwise and only when the DAF >>> has no idea that a gift was being used to pay a pledge. >>> >>> But buying auction items is not the same as paying a charitable pledge >>> so please do not confuse the two. The IRS notice did not say anything >>> about non-charitable purposes or benefits. Someone is misleading you. >>> >>> John >>> >>> John H. Taylor >>> Principal, John H. Taylor Consulting >>> 2604 Sevier St. >>> Durham, NC 27705 >>> johntaylorconsulting@gmail.com >>> 919.816.5903 (cell/text) >>> >>> Serving the Advancement Community Since 1987 >>> >>> >>> On Wed, May 29, 2019 at 1:52 PM Irene Colford < >>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>> >>>> John, thank you so much. I have read your white paper on bifurcated >>>> payments. But I am being told that DAF rules were changed in 2019 -- e.g., >>>> now allowing DAFs to be used to satisfy pledge payments. >>>> >>>> And I am being questioned as to whether DAFs can now also be used as >>>> payment in which the individual directing the DAF payment has received >>>> value (as in the less-than-FMV auction item at hand). I am googling IRS >>>> publications, but cannot find anything to defend or counter this. I have a >>>> check from a Fidelity DAF, and the qualifying language prohibits accepting >>>> the check if value was provided, but I am being told that the Fidelity >>>> language is outdated. >>>> >>>> >>>> On Wed, May 29, 2019 at 1:40 PM John Taylor < >>>> johntaylorconsulting@gmail.com> wrote: >>>> >>>>> A gift from a DAF, as well as a private foundation, must be used for >>>>> charitable purposes with now benefit enuring to any individual. >>>>> >>>>> John >>>>> >>>>> John H. Taylor >>>>> Principal, John H. Taylor Consulting >>>>> 2604 Sevier St. >>>>> Durham, NC 27705 >>>>> johntaylorconsulting@gmail.com >>>>> 919.816.5903 (cell/text) >>>>> >>>>> Serving the Advancement Community Since 1987 >>>>> >>>>> >>>>> On Wed, May 29, 2019 at 1:33 PM Irene Colford < >>>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>>> >>>>>> Hello all -- We have an auction item that was purchased for less than >>>>>> the FMV, and the donor has sent us a check drawn on his Fidelity DAF for >>>>>> the purchase price. I am finding this problematic -- no tax-exempt >>>>>> component to this gift. >>>>>> >>>>>> On another note -- would the situation be different if the donor had >>>>>> drawn a check against a family foundation? I do not fully understand the >>>>>> differences between family foundations and DAFs. Would very much >>>>>> appreciate clarity on this as well. >>>>>> >>>>>> Many thanks, >>>>>> Irene >>>>>> >>>>>> *Irene Colford * >>>>>> Director, Advancement Services >>>>>> Tel: 203 532 3160 <203%20532%203176> >>>>>> >>>>>> *Sacred Heart Greenwich* >>>>>> 1177 King St./Greenwich, Connecticut 06831 >>>>>> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >>>>>> >>>>>>

If a chat would be useful with the "powers that be" please let me know! John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 2:32 PM Irene Colford < 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > Sincerest thanks. > Irene > > > > On Wed, May 29, 2019 at 2:31 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> It is on the download site and referenced in my white paper found there >> as well. It is attached as well. >> >> Understand that this was an IRS Notice out for public comment - the >> comment period for which expired over one year ago. The notice authorized >> the use of DAF gifts as pledge payments under three circumstances while the >> IRS reviews those comments. No final ruling has been issued. And ALL of >> the major DAF providers continue to refuse the use of their gifts as pledge >> payments and require individuals to certify to that when applying for a >> grant. >> >> And none of this applies to private foundations - only DAFs. >> >> John >> >> John H. Taylor >> Principal, John H. Taylor Consulting >> 2604 Sevier St. >> Durham, NC 27705 >> johntaylorconsulting@gmail.com >> 919.816.5903 (cell/text) >> >> Serving the Advancement Community Since 1987 >> >> >> On Wed, May 29, 2019 at 2:19 PM Irene Colford < >> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >> >>> Many thanks, John. Could you please direct me to the applicable IRS >>> document(s)? I am under some pressure and have not succeeded in my IRS >>> search. >>> >>> >>> >>> >>> >>> On Wed, May 29, 2019 at 1:57 PM John Taylor < >>> johntaylorconsulting@gmail.com> wrote: >>> >>>> You are being given the full background. There was an IRS Notice >>>> issued that would allow pledge payments in very specialized situations but >>>> NEVER when the DAF grant request material states otherwise and only when >>>> the DAF has no idea that a gift was being used to pay a pledge. >>>> >>>> But buying auction items is not the same as paying a charitable pledge >>>> so please do not confuse the two. The IRS notice did not say anything >>>> about non-charitable purposes or benefits. Someone is misleading you. >>>> >>>> John >>>> >>>> John H. Taylor >>>> Principal, John H. Taylor Consulting >>>> 2604 Sevier St. >>>> Durham, NC 27705 >>>> johntaylorconsulting@gmail.com >>>> 919.816.5903 (cell/text) >>>> >>>> Serving the Advancement Community Since 1987 >>>> >>>> >>>> On Wed, May 29, 2019 at 1:52 PM Irene Colford < >>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>> >>>>> John, thank you so much. I have read your white paper on bifurcated >>>>> payments. But I am being told that DAF rules were changed in 2019 -- e.g., >>>>> now allowing DAFs to be used to satisfy pledge payments. >>>>> >>>>> And I am being questioned as to whether DAFs can now also be used as >>>>> payment in which the individual directing the DAF payment has received >>>>> value (as in the less-than-FMV auction item at hand). I am googling IRS >>>>> publications, but cannot find anything to defend or counter this. I have a >>>>> check from a Fidelity DAF, and the qualifying language prohibits accepting >>>>> the check if value was provided, but I am being told that the Fidelity >>>>> language is outdated. >>>>> >>>>> >>>>> On Wed, May 29, 2019 at 1:40 PM John Taylor < >>>>> johntaylorconsulting@gmail.com> wrote: >>>>> >>>>>> A gift from a DAF, as well as a private foundation, must be used for >>>>>> charitable purposes with now benefit enuring to any individual. >>>>>> >>>>>> John >>>>>> >>>>>> John H. Taylor >>>>>> Principal, John H. Taylor Consulting >>>>>> 2604 Sevier St. >>>>>> Durham, NC 27705 >>>>>> johntaylorconsulting@gmail.com >>>>>> 919.816.5903 (cell/text) >>>>>> >>>>>> Serving the Advancement Community Since 1987 >>>>>> >>>>>> >>>>>> On Wed, May 29, 2019 at 1:33 PM Irene Colford < >>>>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>>>> >>>>>>> Hello all -- We have an auction item that was purchased for less >>>>>>> than the FMV, and the donor has sent us a check drawn on his Fidelity DAF >>>>>>> for the purchase price. I am finding this problematic -- no tax-exempt >>>>>>> component to this gift. >>>>>>> >>>>>>> On another note -- would the situation be different if the donor had >>>>>>> drawn a check against a family foundation? I do not fully understand the >>>>>>> differences between family foundations and DAFs. Would very much >>>>>>> appreciate clarity on this as well. >>>>>>> >>>>>>> Many thanks, >>>>>>> Irene >>>>>>> >>>>>>> *Irene Colford * >>>>>>> Director, Advancement Services >>>>>>> Tel: 203 532 3160 <203%20532%203176> >>>>>>> >>>>>>> *Sacred Heart Greenwich* >>>>>>> 1177 King St./Greenwich, Connecticut 06831 >>>>>>> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >>>>>>> >>>>>>>

Irene, Fidelity offers quite explicit details under the Policy Guidelines <https://www.fidelitycharitable.org/docs/Giving-Account-Policy-Guidelines.pdf> about how their grants can - and cannot - be used. On page 17 the document articulates that grants cannot be used where "more than incidental benefits" are provided to the donor. Even further, the second bullet on page 18 expressly states as an example of "more than incidental benefits" being "Raffle tickets or goods or services bought at a charitable auction". The Table of Contents notes that their policy document was last update in October of 2018 so I would hardly qualify that as outdated... :-) Good luck and best regards, Amy Amy J. Phillips Director of Advancement Services, Gift Acceptance Division of University Advancement The Catholic University of America 620 Michigan Avenue, E215 O'Connell Hall Washington, DC 20064 Phone: 202-319-6919 Email: phillipsajud@cua.edu On Wed, May 29, 2019 at 2:46 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > If a chat would be useful with the "powers that be" please let me know! > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Wed, May 29, 2019 at 2:32 PM Irene Colford < > 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > >> Sincerest thanks. >> Irene >> >> >> >> On Wed, May 29, 2019 at 2:31 PM John Taylor < >> johntaylorconsulting@gmail.com> wrote: >> >>> It is on the download site and referenced in my white paper found there >>> as well. It is attached as well. >>> >>> Understand that this was an IRS Notice out for public comment - the >>> comment period for which expired over one year ago. The notice authorized >>> the use of DAF gifts as pledge payments under three circumstances while the >>> IRS reviews those comments. No final ruling has been issued. And ALL of >>> the major DAF providers continue to refuse the use of their gifts as pledge >>> payments and require individuals to certify to that when applying for a >>> grant. >>> >>> And none of this applies to private foundations - only DAFs. >>> >>> John >>> >>> John H. Taylor >>> Principal, John H. Taylor Consulting >>> 2604 Sevier St. >>> Durham, NC 27705 >>> johntaylorconsulting@gmail.com >>> 919.816.5903 (cell/text) >>> >>> Serving the Advancement Community Since 1987 >>> >>> >>> On Wed, May 29, 2019 at 2:19 PM Irene Colford < >>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>> >>>> Many thanks, John. Could you please direct me to the applicable IRS >>>> document(s)? I am under some pressure and have not succeeded in my IRS >>>> search. >>>> >>>> >>>> >>>> >>>> >>>> On Wed, May 29, 2019 at 1:57 PM John Taylor < >>>> johntaylorconsulting@gmail.com> wrote: >>>> >>>>> You are being given the full background. There was an IRS Notice >>>>> issued that would allow pledge payments in very specialized situations but >>>>> NEVER when the DAF grant request material states otherwise and only when >>>>> the DAF has no idea that a gift was being used to pay a pledge. >>>>> >>>>> But buying auction items is not the same as paying a charitable pledge >>>>> so please do not confuse the two. The IRS notice did not say anything >>>>> about non-charitable purposes or benefits. Someone is misleading you. >>>>> >>>>> John >>>>> >>>>> John H. Taylor >>>>> Principal, John H. Taylor Consulting >>>>> 2604 Sevier St. >>>>> Durham, NC 27705 >>>>> johntaylorconsulting@gmail.com >>>>> 919.816.5903 (cell/text) >>>>> >>>>> Serving the Advancement Community Since 1987 >>>>> >>>>> >>>>> On Wed, May 29, 2019 at 1:52 PM Irene Colford < >>>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>>> >>>>>> John, thank you so much. I have read your white paper on bifurcated >>>>>> payments. But I am being told that DAF rules were changed in 2019 -- e.g., >>>>>> now allowing DAFs to be used to satisfy pledge payments. >>>>>> >>>>>> And I am being questioned as to whether DAFs can now also be used as >>>>>> payment in which the individual directing the DAF payment has received >>>>>> value (as in the less-than-FMV auction item at hand). I am googling IRS >>>>>> publications, but cannot find anything to defend or counter this. I have a >>>>>> check from a Fidelity DAF, and the qualifying language prohibits accepting >>>>>> the check if value was provided, but I am being told that the Fidelity >>>>>> language is outdated. >>>>>> >>>>>> >>>>>> On Wed, May 29, 2019 at 1:40 PM John Taylor < >>>>>> johntaylorconsulting@gmail.com> wrote: >>>>>> >>>>>>> A gift from a DAF, as well as a private foundation, must be used for >>>>>>> charitable purposes with now benefit enuring to any individual. >>>>>>> >>>>>>> John >>>>>>> >>>>>>> John H. Taylor >>>>>>> Principal, John H. Taylor Consulting >>>>>>> 2604 Sevier St. >>>>>>> Durham, NC 27705 >>>>>>> johntaylorconsulting@gmail.com >>>>>>> 919.816.5903 (cell/text) >>>>>>> >>>>>>> Serving the Advancement Community Since 1987 >>>>>>> >>>>>>> >>>>>>> On Wed, May 29, 2019 at 1:33 PM Irene Colford < >>>>>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>>>>> >>>>>>>> Hello all -- We have an auction item that was purchased for less >>>>>>>> than the FMV, and the donor has sent us a check drawn on his Fidelity DAF >>>>>>>> for the purchase price. I am finding this problematic -- no tax-exempt >>>>>>>> component to this gift. >>>>>>>> >>>>>>>> On another note -- would the situation be different if the donor >>>>>>>> had drawn a check against a family foundation? I do not fully understand >>>>>>>> the differences between family foundations and DAFs. Would very much >>>>>>>> appreciate clarity on this as well. >>>>>>>> >>>>>>>> Many thanks, >>>>>>>> Irene >>>>>>>> >>>>>>>> *Irene Colford * >>>>>>>> Director, Advancement Services >>>>>>>> Tel: 203 532 3160 <203%20532%203176> >>>>>>>> >>>>>>>> *Sacred Heart Greenwich* >>>>>>>> 1177 King St./Greenwich, Connecticut 06831 >>>>>>>> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >>>>>>>> >>>>>>>>

Thank you, Amy. Much appreciated. On Wed, May 29, 2019 at 3:13 PM Amy Phillips <phillipsajud@cua.edu> wrote: > Irene, > > Fidelity offers quite explicit details under the Policy Guidelines > <https://www.fidelitycharitable.org/docs/Giving-Account-Policy-Guidelines.pdf> > about how their grants can - and cannot - be used. On page 17 the document > articulates that grants cannot be used where "more than incidental > benefits" are provided to the donor. Even further, the second bullet on > page 18 expressly states as an example of "more than incidental benefits" > being "Raffle tickets or goods or services bought at a charitable > auction". The Table of Contents notes that their policy document was last > update in October of 2018 so I would hardly qualify that as outdated... :-) > > Good luck and best regards, > > Amy > > Amy J. Phillips > Director of Advancement Services, Gift Acceptance > Division of University Advancement > The Catholic University of America > 620 Michigan Avenue, E215 O'Connell Hall > Washington, DC 20064 > Phone: 202-319-6919 > Email: phillipsajud@cua.edu > > > > On Wed, May 29, 2019 at 2:46 PM John Taylor < > johntaylorconsulting@gmail.com> wrote: > >> If a chat would be useful with the "powers that be" please let me know! >> >> John >> >> John H. Taylor >> Principal, John H. Taylor Consulting >> 2604 Sevier St. >> Durham, NC 27705 >> johntaylorconsulting@gmail.com >> 919.816.5903 (cell/text) >> >> Serving the Advancement Community Since 1987 >> >> >> On Wed, May 29, 2019 at 2:32 PM Irene Colford < >> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >> >>> Sincerest thanks. >>> Irene >>> >>> >>> >>> On Wed, May 29, 2019 at 2:31 PM John Taylor < >>> johntaylorconsulting@gmail.com> wrote: >>> >>>> It is on the download site and referenced in my white paper found there >>>> as well. It is attached as well. >>>> >>>> Understand that this was an IRS Notice out for public comment - the >>>> comment period for which expired over one year ago. The notice authorized >>>> the use of DAF gifts as pledge payments under three circumstances while the >>>> IRS reviews those comments. No final ruling has been issued. And ALL of >>>> the major DAF providers continue to refuse the use of their gifts as pledge >>>> payments and require individuals to certify to that when applying for a >>>> grant. >>>> >>>> And none of this applies to private foundations - only DAFs. >>>> >>>> John >>>> >>>> John H. Taylor >>>> Principal, John H. Taylor Consulting >>>> 2604 Sevier St. >>>> Durham, NC 27705 >>>> johntaylorconsulting@gmail.com >>>> 919.816.5903 (cell/text) >>>> >>>> Serving the Advancement Community Since 1987 >>>> >>>> >>>> On Wed, May 29, 2019 at 2:19 PM Irene Colford < >>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>> >>>>> Many thanks, John. Could you please direct me to the applicable IRS >>>>> document(s)? I am under some pressure and have not succeeded in my IRS >>>>> search. >>>>> >>>>> >>>>> >>>>> >>>>> >>>>> On Wed, May 29, 2019 at 1:57 PM John Taylor < >>>>> johntaylorconsulting@gmail.com> wrote: >>>>> >>>>>> You are being given the full background. There was an IRS Notice >>>>>> issued that would allow pledge payments in very specialized situations but >>>>>> NEVER when the DAF grant request material states otherwise and only when >>>>>> the DAF has no idea that a gift was being used to pay a pledge. >>>>>> >>>>>> But buying auction items is not the same as paying a charitable >>>>>> pledge so please do not confuse the two. The IRS notice did not say >>>>>> anything about non-charitable purposes or benefits. Someone is misleading >>>>>> you. >>>>>> >>>>>> John >>>>>> >>>>>> John H. Taylor >>>>>> Principal, John H. Taylor Consulting >>>>>> 2604 Sevier St. >>>>>> Durham, NC 27705 >>>>>> johntaylorconsulting@gmail.com >>>>>> 919.816.5903 (cell/text) >>>>>> >>>>>> Serving the Advancement Community Since 1987 >>>>>> >>>>>> >>>>>> On Wed, May 29, 2019 at 1:52 PM Irene Colford < >>>>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>>>> >>>>>>> John, thank you so much. I have read your white paper on bifurcated >>>>>>> payments. But I am being told that DAF rules were changed in 2019 -- e.g., >>>>>>> now allowing DAFs to be used to satisfy pledge payments. >>>>>>> >>>>>>> And I am being questioned as to whether DAFs can now also be used as >>>>>>> payment in which the individual directing the DAF payment has received >>>>>>> value (as in the less-than-FMV auction item at hand). I am googling IRS >>>>>>> publications, but cannot find anything to defend or counter this. I have a >>>>>>> check from a Fidelity DAF, and the qualifying language prohibits accepting >>>>>>> the check if value was provided, but I am being told that the Fidelity >>>>>>> language is outdated. >>>>>>> >>>>>>> >>>>>>> On Wed, May 29, 2019 at 1:40 PM John Taylor < >>>>>>> johntaylorconsulting@gmail.com> wrote: >>>>>>> >>>>>>>> A gift from a DAF, as well as a private foundation, must be used >>>>>>>> for charitable purposes with now benefit enuring to any individual. >>>>>>>> >>>>>>>> John >>>>>>>> >>>>>>>> John H. Taylor >>>>>>>> Principal, John H. Taylor Consulting >>>>>>>> 2604 Sevier St. >>>>>>>> Durham, NC 27705 >>>>>>>> johntaylorconsulting@gmail.com >>>>>>>> 919.816.5903 (cell/text) >>>>>>>> >>>>>>>> Serving the Advancement Community Since 1987 >>>>>>>> >>>>>>>> >>>>>>>> On Wed, May 29, 2019 at 1:33 PM Irene Colford < >>>>>>>> 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >>>>>>>> >>>>>>>>> Hello all -- We have an auction item that was purchased for less >>>>>>>>> than the FMV, and the donor has sent us a check drawn on his Fidelity DAF >>>>>>>>> for the purchase price. I am finding this problematic -- no tax-exempt >>>>>>>>> component to this gift. >>>>>>>>> >>>>>>>>> On another note -- would the situation be different if the donor >>>>>>>>> had drawn a check against a family foundation? I do not fully understand >>>>>>>>> the differences between family foundations and DAFs. Would very much >>>>>>>>> appreciate clarity on this as well. >>>>>>>>> >>>>>>>>> Many thanks, >>>>>>>>> Irene >>>>>>>>> >>>>>>>>> *Irene Colford * >>>>>>>>> Director, Advancement Services >>>>>>>>> Tel: 203 532 3160 <203%20532%203176> >>>>>>>>> >>>>>>>>> *Sacred Heart Greenwich* >>>>>>>>> 1177 King St./Greenwich, Connecticut 06831 >>>>>>>>> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >>>>>>>>> >>>>>>>>>

And John, in clarification, the school cannot accept the check as payment since the donor received a charitable deduction when the money was given to the DAF and/or Family Foundation. Donor needs to write a personal check or give back the goods. Sent from my iPhone Please excuse brevity and misspelling. Donna Rex 904.910.9140 donnafund@gmail.com > On May 29, 2019, at 1:40 PM, John Taylor <johntaylorconsulting@gmail.com> wrote: > > A gift from a DAF, as well as a private foundation, must be used for charitable purposes with now benefit enuring to any individual. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > >> On Wed, May 29, 2019 at 1:33 PM Irene Colford <0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: >> Hello all -- We have an auction item that was purchased for less than the FMV, and the donor has sent us a check drawn on his Fidelity DAF for the purchase price. I am finding this problematic -- no tax-exempt component to this gift. >> >> On another note -- would the situation be different if the donor had drawn a check against a family foundation? I do not fully understand the differences between family foundations and DAFs. Would very much appreciate clarity on this as well. >> >> Many thanks, >> Irene >> >> Irene Colford >> Director, Advancement Services >> Tel: 203 532 3160 >> >> Sacred Heart Greenwich >> 1177 King St./Greenwich, Connecticut 06831 >> www.cshgreenwich.org

Whenever we receive a gift from a DAF (or family foundation) that results in a tangible benefit, the check should not be processed without written confirmation from the legal donor (DAF or private foundation) clearly stating they acknowledge that their gift is providing a tangible benefit. I have never found a DAF to allow that. But once in awhile, I have received that from a family foundation. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 5:08 PM Donna Rex <donnafund@gmail.com> wrote: > And John, in clarification, the school cannot accept the check as payment > since the donor received a charitable deduction when the money was given to > the DAF and/or Family Foundation. Donor needs to write a personal check or > give back the goods. > > Sent from my iPhone > Please excuse brevity and misspelling. > > Donna Rex > 904.910.9140 > donnafund@gmail.com > > > On May 29, 2019, at 1:40 PM, John Taylor <johntaylorconsulting@gmail.com> > wrote: > > A gift from a DAF, as well as a private foundation, must be used for > charitable purposes with now benefit enuring to any individual. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Wed, May 29, 2019 at 1:33 PM Irene Colford < > 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > >> Hello all -- We have an auction item that was purchased for less than the >> FMV, and the donor has sent us a check drawn on his Fidelity DAF for the >> purchase price. I am finding this problematic -- no tax-exempt component >> to this gift. >> >> On another note -- would the situation be different if the donor had >> drawn a check against a family foundation? I do not fully understand the >> differences between family foundations and DAFs. Would very much >> appreciate clarity on this as well. >> >> Many thanks, >> Irene >> >> *Irene Colford * >> Director, Advancement Services >> Tel: 203 532 3160 <203%20532%203176> >> >> *Sacred Heart Greenwich* >> 1177 King St./Greenwich, Connecticut 06831 >> *www.cshgreenwich.org* <http://www.cshgreenwich.org/> >> >>

Do you mean a corporate foundation? As noted before, the rules we have been talking about apply to donor-advised funds and private foundations (aka family foundations). Many corporations do some of their giving through donor-advised funds (which includes the likes of Benevity). In those cases, these rules apply. However, if not a DAF or a private foundation, benefits are often granted and appropriate (as long as you follow IRS quid pro quo rules). Indeed, if in doubt as to the exempt nature of the donor, contact them and ask what is and is not permissible. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Jun 6, 2019 at 4:31 PM Carper Stephanie <stephanie.carper@us.mcd.com> wrote: > Are the rules the same if the gift is coming from a foundation that > belongs to a company? > > > > Thanks, > > > > Stephanie > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Wednesday, May 29, 2019 4:17 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation > > > > Whenever we receive a gift from a DAF (or family foundation) that results > in a tangible benefit, the check should not be processed without written > confirmation from the legal donor (DAF or private foundation) clearly > stating they acknowledge that their gift is providing a tangible benefit. > > > > I have never found a DAF to allow that. But once in awhile, I have > received that from a family foundation. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Wed, May 29, 2019 at 5:08 PM Donna Rex <donnafund@gmail.com> wrote: > > And John, in clarification, the school cannot accept the check as payment > since the donor received a charitable deduction when the money was given to > the DAF and/or Family Foundation. Donor needs to write a personal check or > give back the goods. > > Sent from my iPhone > > Please excuse brevity and misspelling. > > > > Donna Rex > > 904.910.9140 > > donnafund@gmail.com > > > > > On May 29, 2019, at 1:40 PM, John Taylor <johntaylorconsulting@gmail.com> > wrote: > > A gift from a DAF, as well as a private foundation, must be used for > charitable purposes with now benefit enuring to any individual. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Wed, May 29, 2019 at 1:33 PM Irene Colford < > 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > > Hello all -- We have an auction item that was purchased for less than the > FMV, and the donor has sent us a check drawn on his Fidelity DAF for the > purchase price. I am finding this problematic -- no tax-exempt component > to this gift. > > > > On another note -- would the situation be different if the donor had drawn > a check against a family foundation? I do not fully understand the > differences between family foundations and DAFs. Would very much > appreciate clarity on this as well. > > > > Many thanks, > > Irene > > > *Irene Colford * > > Director, Advancement Services > > Tel: 203 532 3160 <203%20532%203176> > > > > *Sacred Heart Greenwich* > > 1177 King St./Greenwich, Connecticut 06831 > > *www.cshgreenwich.org* > <https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.cshgreenwich.org%2F&data=02%7C01%7Cstephanie.carper%40US.MCD.COM%7Cc0006d0d07d24782304c08d6e47b16fc%7Cc05b8d5ab8834afbae93db5db239911c%7C0%7C0%7C636947614648951848&sdata=jI%2FkZEPseq6KNz7hrKc4sq9bYHAbTFL4j%2BMhwHIxJQE%3D&reserved=0> > >

Private foundations are typically controlled by a family or a small number of people: https://www.irs.gov/charities-non-profits/eo-operational-requirements-private-foundations-and-public-charities You are probably fine - but if uncertain about their eligibility to receive benefits simply call and ask. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Jun 6, 2019 at 5:57 PM Carper Stephanie <stephanie.carper@us.mcd.com> wrote: > So corporate foundations are not considered private foundations? > > > > We received a gift today from a corporate foundation that is associated > with one of our vendors to pay for a table at our annual gala for the > vendor. I am trying to figure out if we should accept this gift or not. > > > > Thank you, > > > > Stephanie > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Thursday, June 6, 2019 3:41 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation > > > > Do you mean a corporate foundation? As noted before, the rules we have > been talking about apply to donor-advised funds and private foundations > (aka family foundations). Many corporations do some of their giving > through donor-advised funds (which includes the likes of Benevity). In > those cases, these rules apply. > > > > However, if not a DAF or a private foundation, benefits are often granted > and appropriate (as long as you follow IRS quid pro quo rules). > > > > Indeed, if in doubt as to the exempt nature of the donor, contact them and > ask what is and is not permissible. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Thu, Jun 6, 2019 at 4:31 PM Carper Stephanie < > stephanie.carper@us.mcd.com> wrote: > > Are the rules the same if the gift is coming from a foundation that > belongs to a company? > > > > Thanks, > > > > Stephanie > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Wednesday, May 29, 2019 4:17 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation > > > > Whenever we receive a gift from a DAF (or family foundation) that results > in a tangible benefit, the check should not be processed without written > confirmation from the legal donor (DAF or private foundation) clearly > stating they acknowledge that their gift is providing a tangible benefit. > > > > I have never found a DAF to allow that. But once in awhile, I have > received that from a family foundation. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Wed, May 29, 2019 at 5:08 PM Donna Rex <donnafund@gmail.com> wrote: > > And John, in clarification, the school cannot accept the check as payment > since the donor received a charitable deduction when the money was given to > the DAF and/or Family Foundation. Donor needs to write a personal check or > give back the goods. > > Sent from my iPhone > > Please excuse brevity and misspelling. > > > > Donna Rex > > 904.910.9140 > > donnafund@gmail.com > > > > > On May 29, 2019, at 1:40 PM, John Taylor <johntaylorconsulting@gmail.com> > wrote: > > A gift from a DAF, as well as a private foundation, must be used for > charitable purposes with now benefit enuring to any individual. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Wed, May 29, 2019 at 1:33 PM Irene Colford < > 0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org> wrote: > > Hello all -- We have an auction item that was purchased for less than the > FMV, and the donor has sent us a check drawn on his Fidelity DAF for the > purchase price. I am finding this problematic -- no tax-exempt component > to this gift. > > > > On another note -- would the situation be different if the donor had drawn > a check against a family foundation? I do not fully understand the > differences between family foundations and DAFs. Would very much > appreciate clarity on this as well. > > > > Many thanks, > > Irene > > > *Irene Colford * > > Director, Advancement Services > > Tel: 203 532 3160 <203%20532%203176> > > > > *Sacred Heart Greenwich* > > 1177 King St./Greenwich, Connecticut 06831 > > *www.cshgreenwich.org* > <https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.cshgreenwich.org%2F&data=02%7C01%7Cstephanie.carper%40US.MCD.COM%7C8d1229febae04d48e80e08d6eac0571d%7Cc05b8d5ab8834afbae93db5db239911c%7C0%7C0%7C636954509150617345&sdata=rnjgeXBLexWcm9x64y%2B64MpUdAjWmb00lpdqoBkNk6I%3D&reserved=0> > >

Are the rules the same if the gift is coming from a foundation that belongs to a company? Thanks, Stephanie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Wednesday, May 29, 2019 4:17 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation Whenever we receive a gift from a DAF (or family foundation) that results in a tangible benefit, the check should not be processed without written confirmation from the legal donor (DAF or private foundation) clearly stating they acknowledge that their gift is providing a tangible benefit. I have never found a DAF to allow that. But once in awhile, I have received that from a family foundation. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 5:08 PM Donna Rex <donnafund@gmail.com<mailto:donnafund@gmail.com>> wrote: And John, in clarification, the school cannot accept the check as payment since the donor received a charitable deduction when the money was given to the DAF and/or Family Foundation. Donor needs to write a personal check or give back the goods. Sent from my iPhone Please excuse brevity and misspelling. Donna Rex 904.910.9140 donnafund@gmail.com<mailto:donnafund@gmail.com> On May 29, 2019, at 1:40 PM, John Taylor <johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com>> wrote: A gift from a DAF, as well as a private foundation, must be used for charitable purposes with now benefit enuring to any individual. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 1:33 PM Irene Colford <0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org<mailto:0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org>> wrote: Hello all -- We have an auction item that was purchased for less than the FMV, and the donor has sent us a check drawn on his Fidelity DAF for the purchase price. I am finding this problematic -- no tax-exempt component to this gift. On another note -- would the situation be different if the donor had drawn a check against a family foundation? I do not fully understand the differences between family foundations and DAFs. Would very much appreciate clarity on this as well. Many thanks, Irene Irene Colford Director, Advancement Services Tel: 203 532 3160<tel:203%20532%203176> Sacred Heart Greenwich 1177 King St./Greenwich, Connecticut 06831 www.cshgreenwich.org<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.cshgreenwich.org%2F&data=02%7C01%7Cstephanie.carper%40US.MCD.COM%7Cc0006d0d07d24782304c08d6e47b16fc%7Cc05b8d5ab8834afbae93db5db239911c%7C0%7C0%7C636947614648951848&sdata=jI%2FkZEPseq6KNz7hrKc4sq9bYHAbTFL4j%2BMhwHIxJQE%3D&reserved=0> [http://intranet.cshgreenwich.org/images/sacredheartgreenwich.png]

So corporate foundations are not considered private foundations? We received a gift today from a corporate foundation that is associated with one of our vendors to pay for a table at our annual gala for the vendor. I am trying to figure out if we should accept this gift or not. Thank you, Stephanie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Thursday, June 6, 2019 3:41 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation Do you mean a corporate foundation? As noted before, the rules we have been talking about apply to donor-advised funds and private foundations (aka family foundations). Many corporations do some of their giving through donor-advised funds (which includes the likes of Benevity). In those cases, these rules apply. However, if not a DAF or a private foundation, benefits are often granted and appropriate (as long as you follow IRS quid pro quo rules). Indeed, if in doubt as to the exempt nature of the donor, contact them and ask what is and is not permissible. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Jun 6, 2019 at 4:31 PM Carper Stephanie <stephanie.carper@us.mcd.com<mailto:stephanie.carper@us.mcd.com>> wrote: Are the rules the same if the gift is coming from a foundation that belongs to a company? Thanks, Stephanie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, May 29, 2019 4:17 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation Whenever we receive a gift from a DAF (or family foundation) that results in a tangible benefit, the check should not be processed without written confirmation from the legal donor (DAF or private foundation) clearly stating they acknowledge that their gift is providing a tangible benefit. I have never found a DAF to allow that. But once in awhile, I have received that from a family foundation. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 5:08 PM Donna Rex <donnafund@gmail.com<mailto:donnafund@gmail.com>> wrote: And John, in clarification, the school cannot accept the check as payment since the donor received a charitable deduction when the money was given to the DAF and/or Family Foundation. Donor needs to write a personal check or give back the goods. Sent from my iPhone Please excuse brevity and misspelling. Donna Rex 904.910.9140 donnafund@gmail.com<mailto:donnafund@gmail.com> On May 29, 2019, at 1:40 PM, John Taylor <johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com>> wrote: A gift from a DAF, as well as a private foundation, must be used for charitable purposes with now benefit enuring to any individual. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 1:33 PM Irene Colford <0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org<mailto:0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org>> wrote: Hello all -- We have an auction item that was purchased for less than the FMV, and the donor has sent us a check drawn on his Fidelity DAF for the purchase price. I am finding this problematic -- no tax-exempt component to this gift. On another note -- would the situation be different if the donor had drawn a check against a family foundation? I do not fully understand the differences between family foundations and DAFs. Would very much appreciate clarity on this as well. Many thanks, Irene Irene Colford Director, Advancement Services Tel: 203 532 3160<tel:203%20532%203176> Sacred Heart Greenwich 1177 King St./Greenwich, Connecticut 06831 www.cshgreenwich.org<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.cshgreenwich.org%2F&data=02%7C01%7Cstephanie.carper%40US.MCD.COM%7C8d1229febae04d48e80e08d6eac0571d%7Cc05b8d5ab8834afbae93db5db239911c%7C0%7C0%7C636954509150617345&sdata=rnjgeXBLexWcm9x64y%2B64MpUdAjWmb00lpdqoBkNk6I%3D&reserved=0> [http://intranet.cshgreenwich.org/images/sacredheartgreenwich.png]

I was going to share that same link. “Private foundations” is one of those areas where the language that we use day-to-day in fundraising/advancement services may not be exactly the way that the tax code uses similar language. We distinguish, for example, “corporate foundations” from “foundations” since the VSE and other CASE-standard reporting requires us to report “corporate foundations” in the corporation category rather than the foundation category. And we may use language like “personal or family foundation” or even “private foundation” to distinguish foundations that arise from individuals or families from larger foundations like Ford or MacArthur or Pew. The tax code, however, divides 501(c)(3) organizations into two categories, public charities and private foundations. As John says, private foundations receive funding from a limited number of sources (as opposed to public charities, which receive a large proportion of their support from a broader group of entities or from programmatic activities in support of their mission). Essentially, any 501(c)(3) organization that isn’t a public charity is a private foundation. In the case of a corporate foundation, the funding does typically come from a limited number of sources, namely the associated corporation. So the corporate foundation would also be a private foundation, as the tax code categorizes 501(c)(3) entities. It may also be worth mentioning that the reason that there are rules about providing benefits to entities associates with private foundations, and, separately, to entities associated with donor-advised funds, is two-fold. First, because the donor(s) to private foundations and DAFs (may) have already received a tax deduction for their gift to the foundation of DAF, providing them a benefit in return for a contribution from the private foundation or DAF would allow them both a benefit and full deduction, circumventing the limitation of the deduction that would apply if the donor had given directly and received a benefit (which is why that there isn’t a similar issue with a direct corporate contribution resulting in benefits, or for that matter a direct corporate contribution paying off an individual’s pledge, since the corporate funds don’t arise from a previously-deductible contribution). Second, because public charities receive their funding from a broader group of supporters, there is less concern that certain supporters may have so much influence from their role as donors that they might cause the organization to return personal benefits rather than wholly supporting a charitable purpose. John’s fundamental point, that it’s a good idea to contact any foundation when there is a question related to benefits provided in return for their support, goes to the heart of the matter. But I would add a note of caution that corporate foundations are very much private foundations and we would not want to have a lower level of vigilance with respect to impermissible benefits than we would exercise with respect to other private foundations. My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 •: 202-633-8754 | •: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Taylor Sent: Thursday, June 6, 2019 6:02 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation Private foundations are typically controlled by a family or a small number of people: https://www.irs.gov/charities-non-profits/eo-operational-requirements-private-foundations-and-public-charities<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.irs.gov%2Fcharities-non-profits%2Feo-operational-requirements-private-foundations-and-public-charities&data=02%7C01%7CHejnalA%40SI.EDU%7C4f7241f24943459c2c7a08d6eaceaf2f%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C1%7C0%7C636954570777517586&sdata=8dgffkbXzeWRHCaF73%2FrRmdGlETxfnnfuuPhzgEVCsA%3D&reserved=0> You are probably fine - but if uncertain about their eligibility to receive benefits simply call and ask. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Jun 6, 2019 at 5:57 PM Carper Stephanie <stephanie.carper@us.mcd.com<mailto:stephanie.carper@us.mcd.com>> wrote: So corporate foundations are not considered private foundations? We received a gift today from a corporate foundation that is associated with one of our vendors to pay for a table at our annual gala for the vendor. I am trying to figure out if we should accept this gift or not. Thank you, Stephanie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Thursday, June 6, 2019 3:41 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation Do you mean a corporate foundation? As noted before, the rules we have been talking about apply to donor-advised funds and private foundations (aka family foundations). Many corporations do some of their giving through donor-advised funds (which includes the likes of Benevity). In those cases, these rules apply. However, if not a DAF or a private foundation, benefits are often granted and appropriate (as long as you follow IRS quid pro quo rules). Indeed, if in doubt as to the exempt nature of the donor, contact them and ask what is and is not permissible. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Jun 6, 2019 at 4:31 PM Carper Stephanie <stephanie.carper@us.mcd.com<mailto:stephanie.carper@us.mcd.com>> wrote: Are the rules the same if the gift is coming from a foundation that belongs to a company? Thanks, Stephanie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Wednesday, May 29, 2019 4:17 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] DAF for auction gift; DAF vs. Family Foundation Whenever we receive a gift from a DAF (or family foundation) that results in a tangible benefit, the check should not be processed without written confirmation from the legal donor (DAF or private foundation) clearly stating they acknowledge that their gift is providing a tangible benefit. I have never found a DAF to allow that. But once in awhile, I have received that from a family foundation. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 5:08 PM Donna Rex <donnafund@gmail.com<mailto:donnafund@gmail.com>> wrote: And John, in clarification, the school cannot accept the check as payment since the donor received a charitable deduction when the money was given to the DAF and/or Family Foundation. Donor needs to write a personal check or give back the goods. Sent from my iPhone Please excuse brevity and misspelling. Donna Rex 904.910.9140 donnafund@gmail.com<mailto:donnafund@gmail.com> On May 29, 2019, at 1:40 PM, John Taylor <johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com>> wrote: A gift from a DAF, as well as a private foundation, must be used for charitable purposes with now benefit enuring to any individual. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, May 29, 2019 at 1:33 PM Irene Colford <0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org<mailto:0000001cf1f611ce-dmarc-request@listserv.fundsvcs.org>> wrote: Hello all -- We have an auction item that was purchased for less than the FMV, and the donor has sent us a check drawn on his Fidelity DAF for the purchase price. I am finding this problematic -- no tax-exempt component to this gift. On another note -- would the situation be different if the donor had drawn a check against a family foundation? I do not fully understand the differences between family foundations and DAFs. Would very much appreciate clarity on this as well. Many thanks, Irene Irene Colford Director, Advancement Services Tel: 203 532 3160<tel:203%20532%203176> Sacred Heart Greenwich 1177 King St./Greenwich, Connecticut 06831 www.cshgreenwich.org<http://www.cshgreenwich.org/> [http://intranet.cshgreenwich.org/images/sacredheartgreenwich.png]