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Estate Gift From Foundation

  • 1.  Estate Gift From Foundation

    Posted 16 days ago
    We have received a check from a foundation that indicates that it is from a deceased donor's estate.  How would you recommend processing the gift?  Does this work like a DAF?  If the gift is hard credited to the Foundation, would you soft credit it to the deceased individual?  And, would you still count it as an estate gift?  If you have a planned gift on the deceased's record, would you soft credit the foundation gift against the deceased's planned gift?

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    Ann Key
    Director of Advancement Services
    Haggai International
    annk@haggai-international.org
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  • 2.  RE: Estate Gift From Foundation

    Posted 16 days ago
    I would need to contact the foundation to understand the mechanics.  There could be several different scenarios.

    A typical example is where a donor bequeaths their assets to a private foundation, with specific instructions to distribute funds to various entities.  When I have evidence of such an arrangement, I typically record the gift on the deceased record as they used the foundation as an agent or pass-through.

    On the other hand, it's possible that the donor created a foundation upon their death - or gave to an existing private foundation (family) - that independently determines where to make donations.  In that case, the gift would be from the foundation.

    There could be other alternatives.  But my hunch is the first case.  In which instance, you would basically "ignore" the foundation as the donor was using them as a bank of sorts.

    But I would not make assumptions.  Call the foundation and get details on the arrangement.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Estate Gift From Foundation

    Posted 16 days ago
    Hi All,

    One of our donor asked me to investigate how she can have her IRA gift returned or re-receipted as a charitable donation instead of a qualified charitable distribution from her IRA since she is not required now to take an RMD in 2020.  She informed us that she intends to deposit the sum equal to the gift back into her IRA personally to restore the RMD amount.  What can/should I do to help accomplish this?

    Thanks,

    Olga





  • 4.  RE: Estate Gift From Foundation

    Posted 16 days ago
    She needs to reverse the transaction through her financial institution.  You should not take any further action.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987