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  • 1.  Donor Advised Fund Acknowledgement

    Posted 11-02-2022 12:09 PM
    My CEO has my questioning myself. I know that Acknowledgement letters for DAF should not include tax language. Should the letter include language that "no goods or services were exchanged for the donation"?

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    Michelle Gundrum
    Donor Database Administrator
    Meals on Wheels Southwest Ohio & Northern KY
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  • 2.  RE: Donor Advised Fund Acknowledgement

    Posted 11-02-2022 12:13 PM
    DAFs do not need any acknowledgment.  Many, like Fidelity, tell you not to send one at all.  If you do send something it should be a thank you letter.  But, I would confirm to the DAF that no benefits were given in exchange.

    If you want to send a thank you letter to the individual that suggested the grant, it should not mention anything other than the fact you received the grant from the DAF (by name).

    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






  • 3.  RE: Donor Advised Fund Acknowledgement

    Posted 11-02-2022 12:15 PM
    Thank you, John, that is what I thought. My CEO is arguing that the letter should include No Goods or Services were exchanged in consideration for the gift.

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    Michelle Gundrum
    Donor Database Administrator
    Meals on Wheels Southwest Ohio & Northern KY
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    Original Message


  • 4.  RE: Donor Advised Fund Acknowledgement

    Posted 11-02-2022 12:40 PM
    As I said, if you do send a letter, it is a good idea for you to affirm that not benefits were provided - since none are allowed.  But it does not need to be that specific language.

    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


  • 5.  RE: Donor Advised Fund Acknowledgement

    Posted 04-12-2023 09:00 AM

    Hello,

    I have a donor who gave via Donor Advised Fund who is asking for a letter stating that no goods or service were received. Our standard practice is to send the donor a thank you note for recommending the grant, but provide no reference to tax deduction or good and services. Are we able to provide her with this confirmation? It feels like it goes against what I've always thought was best practice....

    Donor's request for reference: The donation came through the DAF and the deduction has been noted accordingly.  A further layer for tax purposes, however, requires an acknowledgement letter from the nonprofit specifying if any goods or services were received to ascertain the amount that is tax deductible



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    Anne Pires
    Year Up
    apires@yearup.org
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    Original Message


  • 6.  RE: Donor Advised Fund Acknowledgement

    Posted 04-12-2023 09:09 AM
    No such letter to the original donor is required. Feel free to send them one if they want it. But when they recommended the grant, they had to sign a statement to the DAF acknowledging they would not receive a benefit or use the gift to satisfy a pledge. You are not under any obligation to do anything further.

    But, in the interest of good donor relations, there isn't any harm in sending the donor a thank you letter (not a receipt!) mentioning the lack of benefits or pledge satisfaction.

    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


  • 7.  RE: Donor Advised Fund Acknowledgement

    Posted 04-13-2023 10:57 AM
    If the donor is trying to double-dip, there's nothing you can provide that will satisfy them. If the donor just doesn't understand that all they need is the DAF receipt, you can try to explain that to them. You can email back and say "You should have received a tax receipt from the DAF for your gift to them, which is al you need in order to claim a deduction. If you have not, please reach out to them, as only they can provide it to you. We can confirm that we provided no goods or services in exchange for the gift we received through the DAF." 

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

    Schedule a 30-minute consultation now:





    Original Message


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