FundSvcs Community

We have a donor who is a beneficiary of a trust. They were due for a distribution from the trust, and directed the trustee to mail the distribution to us as a gift instead.

My question is, to whom do we credit the contribution and send the acknowledgement? The check came from the trust, but it was money that was due to our donor. Does this get handled like an IRA charitable distribution? I am probably overthinking this, but I haven't run across this situation before and want to make sure that we are processing/acknowledging the gift properly.

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu
------------------------------

Original Message:
Sent: 12/6/2022 1:11:00 PM
From: Michelle Lancto
Subject: Distribution from a trust

We have a donor who is a beneficiary of a trust. They were due for a distribution from the trust, and directed the trustee to mail the distribution to us as a gift instead.

My question is, to whom do we credit the contribution and send the acknowledgement? The check came from the trust, but it was money that was due to our donor. Does this get handled like an IRA charitable distribution? I am probably overthinking this, but I haven't run across this situation before and want to make sure that we are processing/acknowledging the gift properly.

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu
------------------------------

Thank you. We are going to talk to the trust administrator. There was a CD as part of the trust for which our donor was designated as the beneficiary. It matured - hence the distribution.

Does it complicate matters that the donor is a member of a religious order and doesn't file income taxes?

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu
------------------------------

Original Message:
Sent: 12-06-2022 12:19 PM
From: John Taylor
Subject: Distribution from a trust

You need to contact the trust administrator.  As long as they are reporting the income to the individual, you are safe in treating it as a gift from the individual.  If, however, the individual waived the income and will not receive a 1099, I'd record it as a gift from the trust with soft credit to the individual.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 12/6/2022 1:11:00 PM
From: Michelle Lancto
Subject: Distribution from a trust

We have a donor who is a beneficiary of a trust. They were due for a distribution from the trust, and directed the trustee to mail the distribution to us as a gift instead.

My question is, to whom do we credit the contribution and send the acknowledgement? The check came from the trust, but it was money that was due to our donor. Does this get handled like an IRA charitable distribution? I am probably overthinking this, but I haven't run across this situation before and want to make sure that we are processing/acknowledging the gift properly.

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu
------------------------------

Original Message:
Sent: 12/7/2022 8:45:00 AM
From: Michelle Lancto
Subject: RE: Distribution from a trust

Thank you. We are going to talk to the trust administrator. There was a CD as part of the trust for which our donor was designated as the beneficiary. It matured - hence the distribution.

Does it complicate matters that the donor is a member of a religious order and doesn't file income taxes?

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu
------------------------------

Original Message:
Sent: 12-06-2022 12:19 PM
From: John Taylor
Subject: Distribution from a trust

You need to contact the trust administrator.  As long as they are reporting the income to the individual, you are safe in treating it as a gift from the individual.  If, however, the individual waived the income and will not receive a 1099, I'd record it as a gift from the trust with soft credit to the individual.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 12/6/2022 1:11:00 PM
From: Michelle Lancto
Subject: Distribution from a trust

We have a donor who is a beneficiary of a trust. They were due for a distribution from the trust, and directed the trustee to mail the distribution to us as a gift instead.

My question is, to whom do we credit the contribution and send the acknowledgement? The check came from the trust, but it was money that was due to our donor. Does this get handled like an IRA charitable distribution? I am probably overthinking this, but I haven't run across this situation before and want to make sure that we are processing/acknowledging the gift properly.

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu
------------------------------

Great! Thank you!

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu
------------------------------

Original Message:
Sent: 12-07-2022 07:59 AM
From: John Taylor
Subject: Distribution from a trust

The protocol does not change based on ones filing status.

John H. Taylor 

919.816.5903 (Cell/Text)

Big Ideas; Small Keyboard

Original Message:
Sent: 12/7/2022 8:45:00 AM
From: Michelle Lancto
Subject: RE: Distribution from a trust

Thank you. We are going to talk to the trust administrator. There was a CD as part of the trust for which our donor was designated as the beneficiary. It matured - hence the distribution.

Does it complicate matters that the donor is a member of a religious order and doesn't file income taxes?

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu

Original Message:
Sent: 12-06-2022 12:19 PM
From: John Taylor
Subject: Distribution from a trust

You need to contact the trust administrator.  As long as they are reporting the income to the individual, you are safe in treating it as a gift from the individual.  If, however, the individual waived the income and will not receive a 1099, I'd record it as a gift from the trust with soft credit to the individual.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 12/6/2022 1:11:00 PM
From: Michelle Lancto
Subject: Distribution from a trust

We have a donor who is a beneficiary of a trust. They were due for a distribution from the trust, and directed the trustee to mail the distribution to us as a gift instead.

My question is, to whom do we credit the contribution and send the acknowledgement? The check came from the trust, but it was money that was due to our donor. Does this get handled like an IRA charitable distribution? I am probably overthinking this, but I haven't run across this situation before and want to make sure that we are processing/acknowledging the gift properly.

------------------------------
Michelle Lancto
Director of Advancement Services
Elms College
lanctom@elms.edu
------------------------------