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Applying matching gift money to a pledge

  • 1.  Applying matching gift money to a pledge

    Posted 18 days ago
    Hi everyone,

    What does the IRS say about applying matching gift money to a personal pledge? Is it legal? I've searched and can't find a definitive answer. 

    Thank you.

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    Tammy Tsakalios
    Loyola Academy
    ttsakalios@loy.org
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  • 2.  RE: Applying matching gift money to a pledge

    Posted 18 days ago
    It is really more about FASB who states that a donor cannot make a pledge that obligates a third party (in so many words).  A pledge is a personal commitment.  So a donor could not make a pledge that includes corporate matches.

    That aside, if the match comes from a private foundation then the IRS is clear bout not using that to pay off a personal pledge.  If a corporate gift, then you should look at the company matching guidelines to see what they say about satisfying a pledge.  The other issue you should be aware of is whether other benefits are involved.

    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: Applying matching gift money to a pledge

    Posted 17 days ago
    Thank you John. The matching gift money comes through Benevity so I doubt they'll be ok with applying the funds towards a personal pledge, but I emailed them to be sure.  Thank you for your help.

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    Tammy Tsakalios
    ttsakalios@loy.org
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  • 4.  RE: Applying matching gift money to a pledge

    Posted 17 days ago
    Under no circumstance can those gifts be applied to pledges - not even the employee's gift as that is coming through a DAF, too!

    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