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Would you accept this payment arrangement involving DAF and matching gifts for an event

  • 1.  Would you accept this payment arrangement involving DAF and matching gifts for an event

    Posted 21 days ago
    We have a donor who has given $3,500 from his DAF in support of our annual luncheon. He received a match from his company of $1,000 for part of the gifts made via his DAF. He would like to purchase tickets to our upcoming luncheon. Tickets are $150 and $75 is the FMV of the goods and services received. Would it be ok if the donor paid $500 personally and combined that with his company match in order to cover the full cost of the tickets for the event? 

    I'm worried I may be overthinking this and would appreciate any guidance. 

    Thank you,

    Stephanie

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    Stephanie Carper
    Director of Development
    scarper@openlands.org
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  • 2.  RE: Would you accept this payment arrangement involving DAF and matching gifts for an event

    Posted 21 days ago
    This is not permitted per the IRS.  Gifts from DAFs must be 100% deductible.  The individual cannot receive any benefit - including the opportunity to pay for tickets (if the DAF gift earned them that right).

    And you might want to check but most matching gift companies do not match DAF gifts.  The match is permissible for their employee only.  And, as the employee did not make the gift - it came from a DAF - the employee cannot claim a match.

    You should always as employers whether they will match a third-party payment.  But this can never be assumed and the matching gift application must clearly reference the DAF as the legal donor.

    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: Would you accept this payment arrangement involving DAF and matching gifts for an event

    Posted 20 days ago
    No . . . matching gifts should never be used/directed by a donor for anything other than the full charitable purpose.

    Sounds odd that a matching gift is matching DAF gifts . .. haven't seen that occur so as much as it's difficult to turn away money, I would double check the matching policies of the company to see if they allow that.

    Tom

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    Thomas Chaves
    Associate VP for Advancement Operations
    St. Joseph's University
    tchaves@sju.edu
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  • 4.  RE: Would you accept this payment arrangement involving DAF and matching gifts for an event

    Posted 20 days ago
    +1 to all of the other answers, with one clarification: The donor can use personal money to buy as many tickets as he wants. At $150 each he could get three tickets with no question. But, as Amy mentioned, I'm guessing your question is more complicated because the donor is wanting to be recognized as a $5,000 sponsor. If that's the case, you still have some wiggle room - as long as there are no other tangible benefits exchanged beyond what the donor gets for their $150 ticket purchase, you can "recognize" them at any level you want.

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    Erin Osenbaugh
    Donor Relations Manager
    Leadership Austin
    eosenbaugh@leadershipaustin.org
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  • 5.  RE: Would you accept this payment arrangement involving DAF and matching gifts for an event

    Posted 20 days ago
    I think I would look at your internal policies for completing matching gift forms or for verifying matches online. Just curious if the MG company thinks their employee made the gift to your organization or if they truly know the DAF gift was the donation that got matched. Based on emails so far I'm not sure but doesn't hurt to check.

    Have a great day. 

    Rob Saunders
    AVC, University of North Carolina at Greensboro 






  • 6.  RE: Would you accept this payment arrangement involving DAF and matching gifts for an event

    Posted 20 days ago
    Hey there, Stephanie - 

    Both John and Tom have questioned a corporate matching of DAF disbursed funds. I would say that while it is highly unusual it is not completely unheard of as a practice. Then again, I've only managed to get a matching program administrator to approve such matches when I made direct contact; I have yet to see a fully articulated mg program policy which allows their funds to match DAF disbursements (even if they did I still suspect it would only be for truly "tax-deductible values associated with a DAF gift same as with a personal gift). I have come across a few who specifically prohibit matches to DAF grants.

    If I'm understanding your description correctly, the donor in question here is trying to achieve a $5K table(?) goal by not only attempting to use all of the DAF disbursement to support attendance of the event he wants his company's matching gift to help buy tickets, as well. Whether or not it is a DAF that is being matched. This scenario is why with most places I've worked we specifically note on event announcements and invitations that DAF gifts cannot be used to fulfill any portion of event participation fees. 

    I don't envy your shoes in this scenario but quite frankly neither the DAF disbursement nor the matching funds (which might not have appropriately been validated if the quid wasn't disclosed) should be allowed for the donor's participatoin in your event. IMHO

    Good luck,

    Amy

    Amy J. Phillips
    Director of Advancement Services, Gift Acceptance
    Division of University Advancement
    The Catholic University of America
    620 Michigan Avenue, B016 O'Connell Hall
    Washington, DC 20064
    Phone: 202-319-6919