This is more of a question to pose to your lawyer.
The issue is whether the IRS could determine that a DAF "satisfied" a pledge through its gift. Most attorneys I have visited across the country prefer that there not be any direct connection between the gift and a pledge.
That normally means that you could not look at the DAF gift and see a donor pledge ID attached or look at the donor pledge and see a "payment" from the DAF-either hard or soft.
However, what is most common is the manual reduction of the pledge by an amount equal to the gift - and a separate (but not linked) soft credit from the DAF to the individual.
However, around 25-33% of the attorneys I have spoken to insist that the pledge must be completely removed from the individual's record and a new pledge must be entered for only the amount the donor will personally pay.
John
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
2604 Sevier Street
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
Original Message:
Sent: 5/6/2024 3:04:00 PM
From: Ann Carman
Subject: Donor Advised Funds
Hello All,
I'm wondering being that you can't use a donor advised fund toward a pledge can you soft credit the pledge so you don't have to decrease it?
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Ann Carman
Hartwick College
gifts@hartwick.edu
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