Hello!
I am having trouble figuring out the best way to book multi-year pledges that will be paid by a donor's Donor Advised Fund. I want to put the pledge in the donors record since they are the one who will be/wants to receive the invoice, however when the money comes in it will be booked to the Donor Advised Fund account and soft credited to the donors account for proper booking.
Does anyone have a best practice for scenarios like this? or do I simply need to put in the pledge in the donor account and then zero it out when the payment comes in from the DAF and soft credit it appropriately?
Thank you!
We have gone the way of adjusting down a pledge in the past.
However. We have been advised that it is not permissible under IRS rules for a donor to use a DAF to pay a personal pledge, or for them to receive benefits, (other than "incidental benefits,") for gifts made on their behalf via DAF. I don't know enough about it to offer specific advice, but you may want to look into it to make sure your bases are covered. It sounds to me like there's some gray area.