FundSvcs Community

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

Amy,

Can we clarify a similar situation? A donor sponsors an event, waives the benefit so that the full amount of the donation is directed to the event. They then pay for the catering costs of the benefit. In their eyes they view this as providing more support. 

The donation is paid by the donor (individual or business), not via a DA or an IRA or a Foundation. 

My research links bifurcation to DAs specifically, but my search was not exhaustive.

Thank you,

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

Amy,

Can we clarify a similar situation? A donor sponsors an event, waives the benefit so that the full amount of the donation is directed to the event. They then pay for the catering costs of the benefit. In their eyes they view this as providing more support. 

The donation is paid by the donor (individual or business), not via a DA or an IRA or a Foundation. 

My research links bifurcation to DAs specifically, but my search was not exhaustive.

Thank you,

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

John,

Not a broken record at all! 

I should have included more details.

In these situations, the individual makes a gift to UMW in the amount of the cost of their dinner. They do not pay dining services or any other vendor. Occasionally this happens for an event not associated with a sponsorship, but more frequently the individual/business sponsor wants to cover their dinner costs rather than accept them as a benefit of the sponsorship.

My question is: can a sponsoring individual/business make a cash contribution to UMW to cover the cost of a benefit (meal) associated with a sponsorship? Payment is not via DA, QCD or Foundation funds. 

Amy,

Can we clarify a similar situation? A donor sponsors an event, waives the benefit so that the full amount of the donation is directed to the event. They then pay for the catering costs of the benefit. In their eyes they view this as providing more support. 

The donation is paid by the donor (individual or business), not via a DA or an IRA or a Foundation. 

My research links bifurcation to DAs specifically, but my search was not exhaustive.

Thank you,

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

John,

Not a broken record at all! 

I should have included more details.

In these situations, the individual makes a gift to UMW in the amount of the cost of their dinner. They do not pay dining services or any other vendor. Occasionally this happens for an event not associated with a sponsorship, but more frequently the individual/business sponsor wants to cover their dinner costs rather than accept them as a benefit of the sponsorship.

My question is: can a sponsoring individual/business make a cash contribution to UMW to cover the cost of a benefit (meal) associated with a sponsorship? Payment is not via DA, QCD or Foundation funds. 

Amy,

Can we clarify a similar situation? A donor sponsors an event, waives the benefit so that the full amount of the donation is directed to the event. They then pay for the catering costs of the benefit. In their eyes they view this as providing more support. 

The donation is paid by the donor (individual or business), not via a DA or an IRA or a Foundation. 

My research links bifurcation to DAs specifically, but my search was not exhaustive.

Thank you,

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

John,

Not a broken record at all! 

I should have included more details.

In these situations, the individual makes a gift to UMW in the amount of the cost of their dinner. They do not pay dining services or any other vendor. Occasionally this happens for an event not associated with a sponsorship, but more frequently the individual/business sponsor wants to cover their dinner costs rather than accept them as a benefit of the sponsorship.

My question is: can a sponsoring individual/business make a cash contribution to UMW to cover the cost of a benefit (meal) associated with a sponsorship? Payment is not via DA, QCD or Foundation funds. 

Amy,

Can we clarify a similar situation? A donor sponsors an event, waives the benefit so that the full amount of the donation is directed to the event. They then pay for the catering costs of the benefit. In their eyes they view this as providing more support. 

The donation is paid by the donor (individual or business), not via a DA or an IRA or a Foundation. 

My research links bifurcation to DAs specifically, but my search was not exhaustive.

Thank you,

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen

Hello,

We recently received a sponsorship payment via DAF. We were not aware this would be their payment method until the check arrived. In speaking with the donor regarding the benefits available at this sponsorship level, they declined some of the benefits (tickets to the event, promo item at the event) but accepted other insubstantial benefits (logo/name on event website and materials). Is this ok with a DAF payment, to accept the insubstantial benefits but decline the substantial benefits? The donor stated they made the gift for charity and expect no goods and services in return. 

Per John's message above, it is stated they can serve as sponsors but they must waive ALL benefits. So curious how to handle our scenario with some accepted and some waived. Also, would it be best practice to reach out to the DAF to be sure they're ok with the payment being used in this way and using the org's name/logo (not the DAF) on the event website and materials, since legally it's the DAF's money? Any advice would be appreciated!

Thank you,

Erica

We have a speaker series with a sponsorship opportunity. A sponsor has indicated that they would like to use their donor-advised fund to pay their sponsorship. The sponsor also has asked to pay the fair market value of the benefits, separately. Currently some individual sponsors will pay for the sponsorship in full and then the dinner benefit as a separate payment. The DA request is a new situation for us. Opinions differ! We've reviewed a number of posts here as well as the policies of the donor-advised funds and the IRS regulations, but would appreciate some additional perspective. 

Can a Donor Advised Fund pay for a sponsorship?

If so, (a) confirming that no separate payment can be made for the Dinner as this would be a bifurcation and (b) can the sponsor accept #2 and #3?

1.      Dinner with Director & Guest Speaker ($450 value/$450 value/$280 value)

·        Sustaining Sponsor:  $750 value for reception up to 15 guests at $50pp, $450 value for dinner where they bring up to six guests at $75pp.

·        Program Sponsor:  $280 value for dinner up to four guests at $70pp.

2.      Acknowledgement as a "Program Sponsor" in promotions and recognition on lecture night and in marketing preceding the lecture, as possible (no value)

3.      Reserved (free) seating for guests in the Auditorium on the night of the sponsored lecture. (no value)

And because QCDs also have benefit restrictions: 

Can a donor pay for their sponsorship with a QCD?

If so, (a) can they pay for the dinner with separate funds and (b) accept #2 and #3?

This situation is providing an opportunity for us to update the language on our sponsorship agreements as well as our pledge agreements. And we are developing new guidelines to share with our gift officers and our campus partners. 

Thank you in advance to sharing your experience and knowledge!

Maureen