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  • 1.  DAF In Perpetuity Bequest - Endowed Giving Program

    Posted 04-01-2024 02:17 PM

    Hi There,

    I am curious what policies or counting rules others have in place for a Bequest/DAF in Perpetuity - endowed giving program. We have seen an uptick in these types of gifts in the last year. I have seen some orgs handle as a bequest exception based on what is in the DAF agreement (annual percentage, successors, total value, etc.) plus number of years left in a campaign for determining an amount to book or count only as distributions come in after the person has passed away - no bequest booked. I am curious what others are doing in their shops to possibly record these types of gifts as bequests in their campaigns, if possible.

    Currently, we are reviewing through an exception process and reviewing the documentation associated with it but looking to see if anyone has established any clear rules or guidelines.

    Thanks.

    Trish



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    Trish Idarola
    University of New Mexico Foundation, Inc.
    trish.idarola@unmfund.org
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  • 2.  RE: DAF In Perpetuity Bequest - Endowed Giving Program

    Posted 04-01-2024 02:40 PM
    Trish, nothing is binding you can record unless the DAF documents they will honor the intent. Remember, funds held in a DAF do not belong to the individual. Therefore, unlike a bequest, when a commitment could be binding on the donor's estate, these are not.

    I call these "doubly revocable." They should only be counted with the DAF certifying that the commitment will be honored, which is very unlikely.

    Whether you want to make an exception to CASE and count these in a campaign is your decision. However, I'd be worried about an overreliance on revocable intentions to achieve your campaign goal. Think about the optics and transparency when you announce the completion of your campaign-but do not have money in the bank to back that claim.

    John

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

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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