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DAF gift to benefit someone unrelated to donor

  • 1.  DAF gift to benefit someone unrelated to donor

    Posted 25 days ago
    The museum affiliated with our college is hosting a fundraising dinner for $125/person, of which $25 is the cost of the meal. An out-of-state donor would like to use their DAF to give to the museum AND to buy two tickets for a local couple to attend the dinner.

    If the benefit accrues to someone other than the donor, is this allowable?

    I think I know the answer, but I wanted to double check. Thank you!

    Greta Hiebert

    Development Office Assistant

    ghiebert@bethelks.edu

    P: 316-284-5250

    Pronouns: she/her (Why am I sharing my pronouns?)


    300 East 27th Street  |  North Newton, KS 67117

    bethelks.edu


    We Are Threshers


    Your donation may be eligible for a matching gift from your employer. Find out at https://www.bethelks.edu/match .


     

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  • 2.  RE: DAF gift to benefit someone unrelated to donor

    Posted 25 days ago
    No.  DAF funds must be used exclusively for charitable purposes.  After all, the gift to the DAF was tax-deductible.  Therefore, the use of those funds must be purely tax-deductible.

    And if the payment is part gift part benefit you still cannot split the payment from the DAF.  That is called bifurcation and disallowed by the IRS.

    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: DAF gift to benefit someone unrelated to donor

    Posted 25 days ago
    Thanks! This will help the museum director understand the situation better.

    Greta Hiebert

    Development Office Assistant

    ghiebert@bethelks.edu

    P: 316-284-5250

    Pronouns: she/her (Why am I sharing my pronouns?)


    300 East 27th Street  |  North Newton, KS 67117

    bethelks.edu


    We Are Threshers


    Your donation may be eligible for a matching gift from your employer. Find out at https://www.bethelks.edu/match .