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DAF and auctions

  • 1.  DAF and auctions

    Posted 11-18-2019 03:14 PM
    Relatively new job at a new institution. I have inherited a donor who uses a Donor Advised Fund to pay for the parking spot they secure via bidding at our auction. It is my understanding, through numerous articles that "if you bid on an item at a charitable auction, you cannot fulfill that charitable commitment from your donor-advised fund."  First, is that understanding correct? Next, is there clear IRS language anywhere? (While there seems to be a lot of language around DAFs/pledges, I'm not finding anything that specifically clarifies this situation.) and finally, is the "burden" on the donor or the institution to enforce? I would like to understand this completely before having conversation with the donor in advance of our spring auction. Any other info regarding DAF's and auctions is appreciated. 
    Thanks in advance.
    - Mo

    Mo Carleton
    Dir. of Development
    Ridgefield Academy

  • 2.  RE: DAF and auctions

    Posted 11-18-2019 03:44 PM
      |   view attached
    All you need to do is ask the DAF what THEY allow for confirmation!

    But this is all outlined in the Pension Protection Act of 2006 (HR4).  Attached is a Reader's Digest version.  See page 3 and "Prohibited Benefits."

    The general interpretation is that donors who give through a DAF cannot receive anything more than the token gifts the IRS exempts from QPQ consideration.


    John H. Taylor
    John H. Taylor Consulting, LLC
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