FundSvcs Community

Hello!

I had a situation today where we had received a six-figure DAF ACH payment via Fidelity that came with grant terms and conditions from the donor advisors. The Donor advisors do have a foundation and the foundation makes grants. This gift was not described by Fidelity as being any different than the other gifts we received in the same spreadsheet that day and the donor advisor was not listed as a foundation but as the two individuals. 

Have others experienced this? Is this allowable and legal? We are always so careful with DAF gifts and making sure that everything is handled with care so as to not put the university, the donor, or the DAF at risk, and this just felt off to me.

Thanks for letting me know if this is something others have seen before.

Rebecca

Hello!

I had a situation today where we had received a six-figure DAF ACH payment via Fidelity that came with grant terms and conditions from the donor advisors. The Donor advisors do have a foundation and the foundation makes grants. This gift was not described by Fidelity as being any different than the other gifts we received in the same spreadsheet that day and the donor advisor was not listed as a foundation but as the two individuals. 

Have others experienced this? Is this allowable and legal? We are always so careful with DAF gifts and making sure that everything is handled with care so as to not put the university, the donor, or the DAF at risk, and this just felt off to me.

Thanks for letting me know if this is something others have seen before.

Rebecca

Thanks, John. The LOU indicates that they intend to recommend grants up to a larger number than this first payment (and they reference donor advised funds), and that the LOU is not a legally binding pledge. 

There are conditions in the LOU including but not limited to:

*Grantee will maintain records of receipts of and expenditures of the Grant and will keep these records during the Term and for at least five (5) years thereafter.

*The return of remaining funds if the LOU is terminated

Based on the LOU, the funds have been assigned to Sponsored Research as a grant (as they should be since this is grant language), but the funds are coming from a DAF, which to me means that they should be an outright gift, should they not? I will definitely contact Fidelity, I just wanted to see if anyone disagreed before I did so and potentially upset a donor as a result of any fallout.

Thanks again!

Rebecca

Hello!

I had a situation today where we had received a six-figure DAF ACH payment via Fidelity that came with grant terms and conditions from the donor advisors. The Donor advisors do have a foundation and the foundation makes grants. This gift was not described by Fidelity as being any different than the other gifts we received in the same spreadsheet that day and the donor advisor was not listed as a foundation but as the two individuals. 

Have others experienced this? Is this allowable and legal? We are always so careful with DAF gifts and making sure that everything is handled with care so as to not put the university, the donor, or the DAF at risk, and this just felt off to me.

Thanks for letting me know if this is something others have seen before.

Rebecca

Thanks, John. The LOU indicates that they intend to recommend grants up to a larger number than this first payment (and they reference donor advised funds), and that the LOU is not a legally binding pledge. 

There are conditions in the LOU including but not limited to:

*Grantee will maintain records of receipts of and expenditures of the Grant and will keep these records during the Term and for at least five (5) years thereafter.

*The return of remaining funds if the LOU is terminated

Based on the LOU, the funds have been assigned to Sponsored Research as a grant (as they should be since this is grant language), but the funds are coming from a DAF, which to me means that they should be an outright gift, should they not? I will definitely contact Fidelity, I just wanted to see if anyone disagreed before I did so and potentially upset a donor as a result of any fallout.

Thanks again!

Rebecca

Hello!

I had a situation today where we had received a six-figure DAF ACH payment via Fidelity that came with grant terms and conditions from the donor advisors. The Donor advisors do have a foundation and the foundation makes grants. This gift was not described by Fidelity as being any different than the other gifts we received in the same spreadsheet that day and the donor advisor was not listed as a foundation but as the two individuals. 

Have others experienced this? Is this allowable and legal? We are always so careful with DAF gifts and making sure that everything is handled with care so as to not put the university, the donor, or the DAF at risk, and this just felt off to me.

Thanks for letting me know if this is something others have seen before.

Rebecca

Thanks, John. I always approach the word grant with caution as donors/funders use it to mean gift more often than not. In this case, it is the reporting and specifics related to what the funding is being used for that threw me off. I appreciate your help, and if I continue to feel flummoxed, I will definitely take you up on that call. 

With gratitude,

Rebecca

Thanks, John. The LOU indicates that they intend to recommend grants up to a larger number than this first payment (and they reference donor advised funds), and that the LOU is not a legally binding pledge. 

There are conditions in the LOU including but not limited to:

*Grantee will maintain records of receipts of and expenditures of the Grant and will keep these records during the Term and for at least five (5) years thereafter.

*The return of remaining funds if the LOU is terminated

Based on the LOU, the funds have been assigned to Sponsored Research as a grant (as they should be since this is grant language), but the funds are coming from a DAF, which to me means that they should be an outright gift, should they not? I will definitely contact Fidelity, I just wanted to see if anyone disagreed before I did so and potentially upset a donor as a result of any fallout.

Thanks again!

Rebecca

Hello!

I had a situation today where we had received a six-figure DAF ACH payment via Fidelity that came with grant terms and conditions from the donor advisors. The Donor advisors do have a foundation and the foundation makes grants. This gift was not described by Fidelity as being any different than the other gifts we received in the same spreadsheet that day and the donor advisor was not listed as a foundation but as the two individuals. 

Have others experienced this? Is this allowable and legal? We are always so careful with DAF gifts and making sure that everything is handled with care so as to not put the university, the donor, or the DAF at risk, and this just felt off to me.

Thanks for letting me know if this is something others have seen before.

Rebecca