Our practice is to have the pledge signed between our office and the foundation if the foundation will be making the payments. Per IRS, a foundation cannot (often) pay a personal pledge obligation (see: self-dealing) if the person is a "disqualified person" (someone with a significant relationship to the foundation, like a board member or family member). If a foundation payment comes in for a pledge booked/signed to the person, we elect to write down the pledge and book the gift separately from the foundation. We do not allow the option for the foundation to make these contingent/renewable optional so that we can book them on our GL.
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Jayme Fancher
San Diego State University
jfancher@sdsu.eduJayme Fancher
San Diego State University
jfancher@sdsu.edu------------------------------
Original Message:
Sent: 04-21-2025 12:59 PM
From: Ashley Patton
Subject: Foundation Pledges
Hi all
My boss has asked me to investigate whether it's permissible to enter pledges made from foundations and apply payments as pledge installments. This would be situations where we applied for a grant from a foundation and were awarded funds that would be paid in the future.
I know that we can't apply payments from a DAF to an individual pledge, but I have never heard that we can't enter a pledge from a foundation that the foundation will then fulfill. I found some information online, but I told my boss that I'd send out the question to the group as well.
Thanks in advance,
Ashley
Ashley Patton (she/her)
Director of Advancement Services
Vermont Law and Graduate School
164 Chelsea Street, PO Box 26, South Royalton, VT 05068
T: 802-831-1230
vermontlaw.edu
