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  • 1.  Reporting Planned Gift

    Posted 05-21-2025 09:57 AM

    Hi,

    I would like to get your thoughts on the following:

     

    Facts: Donor wants to make gift of closely-held, private shares in company to a donor advised fund (DAF) for current tax deduction prior to upcoming sale of company. Donor intends on making grant from DAF to non-profit upon sale of company/liquidity event which is anticipated could take place within 1-5 years.

     

    Question: For campaign reporting (not VSE reporting) can the non-profit report the gift as an irrevocable planned gift with documentation documenting the donor's intent to grant money from the DAF to non-profit?

     

    Thanks in advance for your help. 

     

    Colleen

     

    Colleen Hobson

    Associate VP Advancement Services

    Tel : 435-797-1285 Cell: 435-770-4155

     

    890 E 700 N | USU Alumni Center, Room 201A

    Utah State University

    1590 Old Main Hill

    Logan UT 84322-1590

    http://www.usu.edu/advancement

     



  • 2.  RE: Reporting Planned Gift

    Posted 05-21-2025 10:13 AM
    In a word, no. Only if the donor make an irrevocable gift/bequest to YOU can anything be recorded/counted. No donor has any control over a DAF - legally they can do anything they want with their assets. The donor would have to sign a binding agreement with you for you to count this.

    Please look in the archives for the paper I have shared on Who Can Make a Pledge.

    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




    Original Message


  • 3.  RE: Reporting Planned Gift

    Posted 05-21-2025 12:50 PM
    Ditto to everything John said. In addition, if the shares are donated to the DAF, there are other issues. A DAF is not permitted to own more than 2% of a business, and it's also not permitted for there to be a prearranged agreement between the donor and the DAF that it will offer the shares back to the business's new ownership, or that the new owners will be obligated to buy those shares. 

    None of that impacts your reporting, but may be relevant as you continue to work on this gift. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


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