FundSvcs Community

We have had outside counsel advise,  based on the Council of Foundation position, that we can allow DAF, PF,. and IRA QCD donors to make bifurcated payment to cover the FMV of any benefits they wish to receive.  I still take the stance that we cannot based on IRS 73-2017.  What say you, community?

Side note: they also said we do not have to do a good faith estimate of the FMV of meals and entertainment said donors are receiving at donor events because we also provide educational components.  Advised these are considered incidental benefits akin to taking a donor out to dinner.  Hmmm.

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Kristin Richardson
Executive Director, Development Services
Colonial Williamsburg Foundation
krichards1@cwf.org
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Original Message:
Sent: 8/31/2022 1:51:00 PM
From: Kristin Richardson
Subject: Bifurcation rules

We have had outside counsel advise,  based on the Council of Foundation position, that we can allow DAF, PF,. and IRA QCD donors to make bifurcated payment to cover the FMV of any benefits they wish to receive.  I still take the stance that we cannot based on IRS 73-2017.  What say you, community?

Side note: they also said we do not have to do a good faith estimate of the FMV of meals and entertainment said donors are receiving at donor events because we also provide educational components.  Advised these are considered incidental benefits akin to taking a donor out to dinner.  Hmmm.

------------------------------
Kristin Richardson
Executive Director, Development Services
Colonial Williamsburg Foundation
krichards1@cwf.org
------------------------------

Original Message:
Sent: 8/31/2022 1:51:00 PM
From: Kristin Richardson
Subject: Bifurcation rules

We have had outside counsel advise,  based on the Council of Foundation position, that we can allow DAF, PF,. and IRA QCD donors to make bifurcated payment to cover the FMV of any benefits they wish to receive.  I still take the stance that we cannot based on IRS 73-2017.  What say you, community?

Side note: they also said we do not have to do a good faith estimate of the FMV of meals and entertainment said donors are receiving at donor events because we also provide educational components.  Advised these are considered incidental benefits akin to taking a donor out to dinner.  Hmmm.

------------------------------
Kristin Richardson
Executive Director, Development Services
Colonial Williamsburg Foundation
krichards1@cwf.org
------------------------------

Original Message:
Sent: 8/31/2022 2:30:00 PM
From: Isaac Shalev
Subject: RE: Bifurcation rules

Hi Kirstin,

The Council on Foundations' position (https://cof.org/sites/default/files/documents/files/FINALCommentsDAFNotice2017-73.pdf) is that bifurcation should be allowed in most cases, not that it is allowed. It's not really up to their opinion, in any case. It's the IRS and Dept of Treasury who hold that bifurcation of FMV and charitable amounts provides more than an incidental benefit.

Fidelity and others have examples of how to do bifurcation in a compliant way. Basically, the donor buys the regular ticket at the regular price that provides all the material benefits that such a ticket provides to any donor. Then the DAF makes an additional gift, for which only incidental benefits, like recognition, are provided to the donor. Even this opinion is controversial, and there was quite a debate about it here a few weeks ago. 

Your outside counsel might need some outside counsel on this one.

Thank you,
Isaac Shalev
Data Strategy Expert
Sage70, Inc.
(917) 859-0151
isaac@sage70.com

Schedule a 30-minute consultation now:

https://calendly.com/sage70/30min

Original Message:
Sent: 8/31/2022 1:51:00 PM
From: Kristin Richardson
Subject: Bifurcation rules

We have had outside counsel advise,  based on the Council of Foundation position, that we can allow DAF, PF,. and IRA QCD donors to make bifurcated payment to cover the FMV of any benefits they wish to receive.  I still take the stance that we cannot based on IRS 73-2017.  What say you, community?

Side note: they also said we do not have to do a good faith estimate of the FMV of meals and entertainment said donors are receiving at donor events because we also provide educational components.  Advised these are considered incidental benefits akin to taking a donor out to dinner.  Hmmm.

------------------------------
Kristin Richardson
Executive Director, Development Services
Colonial Williamsburg Foundation
krichards1@cwf.org
------------------------------