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Donor Avisory Funds

Marie Kocher
$organization

We have some donors who make contributions from their funds housed at a collective foundation. How do other Tess orgs out there enter these gifts?

Thanks,

Marie Kocher

Kansas City Ballet

  • $organization

    Hi Marie,

    Our basic rule is that if we are sending out the tax receipt to an individual that it's processed within their account, but if we are not it's processed in the account that the check is from.

    For gifts like the kind I think you are asking about we would process this in the foundations account as a individual gift and soft credit the individual with a 3rd party credited type.



    [edited by: Ryan Rowell at 4:14 PM (GMT -6) on 4 Sep 2009]
  • $organization

    I'd guess most places create a constituent record for the Donor Advised Fund organization, enter the gift in that account and soft credit the gift to the advising donor with a special soft credit type.

    I know there is whole pile of complicated rules about tax receipts and pledges and benefits, etc, etc, which I am not an expert on.

     

  • $organization
    Marie,
    I think there are several old threats on this topic in the forums (not sure what the easiest way to search them is).
     
    Here is what we decided to do at BAM:
    put the money in the Individual's account
    enter the name of Donor advised fund in a custom field in the contribution tab
     
    This spits out an Acknowledgement that can also reference the Donor Advised Fund (through that custom field that shows up in the Acknowledgment report) but NOT a receipt - as we are not supposed to issue a tax receipt for this money (that already happened when they gave the $$ to the Donor Advised Fund).
     
    The tricky tax situation is the main reason we stopped using soft credits, as a regular soft credit from the Donor Advised Fund Account to the Individual's account would create a tax receipt in our business process.
    Also, we got really overwhelmed with the amount of accounts we had to create for Donor Advised Funds, so eventually our Finance department agreed to this much easier solution for us.
     
     
    Monika
     
    Monika Jouvert
    Brooklyn Academy of Music
    Development Business Process Director
    718.623.7810 x6 / internally x4253
     

    From: Tessitura Development Forum [mailto:forums-development@tessituranetwork.com] On Behalf Of Marie Kocher
    Sent: Friday, September 04, 2009 5:05 PM
    To: Monika Jouvert
    Subject: [Tessitura Development Forum] Donor Avisory Funds

    We have some donors who make contributions from their funds housed at a collective foundation. How do other Tess orgs out there enter these gifts?

    Thanks,

    Marie Kocher

    Kansas City Ballet




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  • Former Member
    Former Member $organization in reply to Monika Jouvert (Past Member)

    We enter the gift in the Supporting Organization's tess account and soft credit the individual.  It seems cleanest to me to hard credit whichever entity wrote the check.  As for receipting, pretty much anybody being soft-credited gets an acknowledgment but not a tax receipt, for the reasons already mentioned above. 

    We also decline the benefits on behalf of the individual, as DAF rules prohibit the individuals from receiving any more than incidental benefit.  If donors wish to still receive their benefits, they make an additional payment directly to our organization in the amount of their membership benefits FMV.