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  • 1.  Donor Advised Funds and Pledges

    Posted 10-25-2024 02:41 PM

    We are an Ellucian Advance school and are wondering how others handle when someone pays on their pledge through a donor advised fund?  Most donor advised funds letters say it may not be used on a pledge.  How do you handle this in the database? 

    Thank you



    ------------------------------
    Ann Carman
    Hartwick College
    gifts@hartwick.edu
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  • 2.  RE: Donor Advised Funds and Pledges

    Posted 10-25-2024 02:55 PM
      |   view attached
    Ann, legally, there are two schools of thought - plus a third possible consideration.

    The most common approach is to record the DAF gift as an outright gift on the DAF record and issue soft credit to the individual. Simultaneously, you manually reduce the pledge by a similar amount-never linking the two transactions.

    Of course, following this protocol requires communication with the donor. In fact, if the donor intended all along to pay through a DAF a binding pledge could never have been recorded. Please see the attached.

    The second approach urged by many University Counsel is to delete the original pledge, record the DAF gift as outlined above, and require the donor to execute a new pledge agreement for only the amount they will personally commit to paying.

    The third consideration-never tested in the courts-is to treat your pledges as nonbinding. These cannot be booked on the GL and should be reported separately from bonafide pledges. In theory, as nonbinding, you might be able to link a DAF gift to the pledge. See page 4 of the attached paper. The current edition of the CASE Global Standards now references these nonbinding pledges on page 58.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Attachment(s)

    pdf
    2022 Who Can Make a Pledge.pdf   161 KB 1 version


  • 3.  RE: Donor Advised Funds and Pledges

    Posted 10-25-2024 04:38 PM

    We've received a Gift Commitment Form, which we use for gifts and will use it as documentation to enter a pledge from a donor.

     

    We recently received one where the donor wrote "Approximately $100,000".  How would you handle?  The payment is coming from their retirement account at the end of the year.  Personally, I don't like it and rather not enter it unless we have a concrete number.

     

    Thoughts?

     

    Thanks

     

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  • 4.  RE: Donor Advised Funds and Pledges

    Posted 10-25-2024 06:46 PM
    I would record a pledge for $100,000 and send a pledge confirmation letter reflecting that amount. You can add a note asking them to advise you if any changes in amount or designation are needed.

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas - Small Keyboard



    Original Message


  • 5.  RE: Donor Advised Funds and Pledges

    Posted 10-28-2024 08:47 AM

    Thanks 

     

    Scott Lober

    Director of Development Operations

    Parkland Health Foundation

    214-266-2031  o

     

     




    Original Message


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