Issac, thank you for responding. I believe this is the perspective of our planned giving officers. Definitely not a pledge and not hitting the GL.
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Nancy Vinje Jones
Ball State University Foundation
nvinjejones@bsu.edu------------------------------
Original Message:
Sent: 06-01-2023 11:42 AM
From: Isaac Shalev
Subject: DAF & Successor Election
A DAF successor election is a category C gift from a campaign perspective - a revocable deferred gift. While it is technically distinct from a documented bequest intention, it is practically very similar. My first instinct is to treat them the same, per your campaign counting guidelines. Typically, a bequest intention would be valued based on a credible estimate of its current value. While it's true that future gifts might made out of a DAF prior to the donor's passing, the same is true of an estate. And the reverse is also true: more money may flow into either a DAF or an estate too. Category C is intended for capturing uncertainties of this type. Your institution may have some additional rules about valuation and discounting, at least as far as campaign counting is concerned.
From an accounting perspective, this is not a pledge, and no revenue can be recorded in the GL.
Thank you,
Isaac Shalev
Data Strategy Expert
Sage70, Inc.
(917) 859-0151
isaac@sage70.com
Schedule a 30-minute consultation now:
Original Message:
Sent: 6/1/2023 12:16:00 PM
From: Nancy Vinje Jones
Subject: RE: DAF & Successor Election
Ahh that is very interesting. In fact I do know this particular individual will be directing more gifts out of this fund, at least to us, in the mean time. Have you got a recommendation for handling this situation? Our Planned Giving Officer is making it a priority to get more of our donors who direct gifts from DAFs to designate our foundation as a successor on those funds too. Mind blowing! haha Thank you!
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Nancy Vinje Jones
Ball State University Foundation
nvinjejones@bsu.edu
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Original Message:
Sent: 06-01-2023 10:58 AM
From: John Taylor
Subject: DAF & Successor Election
But do you know for a fact they will not make any distributions between now and when they pass? I do not see how you can reliably "book" any pledge without as written statement from the DAF (not the individual) you will receive a minimum amount.
John
John H. Taylor
Principal
John H. Taylor Consulting, LLC
2604 Sevier St.
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
Original Message:
Sent: 6/1/2023 11:43:00 AM
From: Nancy Vinje Jones
Subject: RE: DAF & Successor Election
We know how much is in the fund, I think we can calculate within reason how long the donor is expected to live (he is not deceased and is 62 y/o) and that they are dividing the asset in half between us and one other foundation.
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Nancy Vinje Jones
Ball State University Foundation
nvinjejones@bsu.edu
Original Message:
Sent: 06-01-2023 10:25 AM
From: John Taylor
Subject: DAF & Successor Election
Do you know how much is in the fund, how long the donor is expected to live, and how much they plan to recommend to other charities before there is a balance to give to you?
John H. Taylor
919.816.5903 (Cell/Text)
Big Ideas; Small Keyboard
Original Message:
Sent: 6/1/2023 11:22:00 AM
From: Nancy Vinje Jones
Subject: RE: DAF & Successor Election
Interesting. Would you elaborate? I'm being asked to "book" an expected dollar amount for our campaign totals. Thanks!
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Nancy Vinje Jones
Ball State University Foundation
nvinjejones@bsu.edu
Original Message:
Sent: 06-01-2023 10:08 AM
From: John Taylor
Subject: DAF & Successor Election
The DAF will be the legal donor. However, there isn't anything you can "book" at this time, as no specific dollar amount is being guaranteed.
John
John H. Taylor
Principal
John H. Taylor Consulting, LLC
2604 Sevier St.
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987