Wednesday, March 23, 2016

Donor Advised Funds

Definition from the AFP Fundraising Dictionary  This link requires AFP membership to access.  Cut and paste of the definition is below.
donor-advised fund,
a fund in which the donor exercises the privilege of making
nonbinding recommendations to the governing body as to which public charity or
charities should receive grant money from this fund. See other
fund phrases at FUND. 

From the IRA


A variety of material via our blogs

Here is some material on Donor Advised Funds from ( A service of the Foundation Center)  

                I want to fulfill a pledge/commitment to a specific charity through my fund. Can I do that?
No. By law, GCF may not issue grant checks to fulfill a pledge or commitment. (See above “What are the restrictions on grantmaking?”) If a donor were permitted to use an advised fund to fulfill a legal obligation or pledge, it would be clear that the donor never truly ceded control of his or her gift to GCF. For this reason, GCF cannot satisfy a donor’s pledge or obligation, even if the commitment is to a qualified public charity. If GCF is made aware that your grant suggestion relates to a pledge or commitment, the Board must deny your request.


Can I fulfill my pledges with a donor-advised fund?
Many times donor advisors include "pledge" language in their recommendations to CFBC for their donor advised funds. In accordance with the Treasury Department regulations, grants awarded from CFBC funds may not be used to fulfill personal pledges or a financial obligation of a donor.
CFBC cannot pay pledges that were pre-existing personal commitments. We suggest that instead of completing a pledge card indicating a legally binding commitment, you communicate with the charity your intent to recommend a grant from your fund at CFBC. This is not a legally binding commitment. We will not honor recommendations that reference a pledge or copies of invoices.
We recommend for both your convenience and the convenience of a charity who will receive funds through a donor advised fund, that you include special instructions such as "capital campaign" or "general support" when you make your recommendation. Space is provided for these instructions on the donor recommendation form

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