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  • 1.  Binding Pledge Questions - P2P and Donor's Company

    Posted 06-24-2024 08:34 AM

    Two questions regarding binding pledges

    1. Are we legally allowed to apply P2P payments to a binding pledge if in the agreement that P2P payments will be accepted for the balance of the pledge amount?

    2. A binding pledge was signed by an individual donor with no mention of any company. The payments are made by the business owned by the company. Can we legally apply these payments to the binding pledge or should this entire commitment be booked as a non-binding pledge?

    Thanks in advance!



    ------------------------------
    K. Michael Kelley
    Memorial Sloan Kettering Cancer Center
    kelleyjk@mskcc.org
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  • 2.  RE: Binding Pledge Questions - P2P and Donor's Company

    Posted 06-24-2024 09:00 AM
    Your first question doesn't have an easy answer. I know some institutions have required both parties to sign the binding pledge agreement.

    However, I am not aware of a prohibition (legal) against this practice, assuming both parties are individuals and do not operate through a DAF, private foundation, etc.

    As to the second question, if the binding pledge stipulated that the individual would pay, then you likely will need to cancel the pledge and either obtain a signed pledge from the company or treat the payments as outright gifts.

    In both instances I likely would obtain sign-off from your CFO or Counsel - or both.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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