[Wade_Rogers_Forum_Moderator]

Thanks for posting this Mark! The caveat in item 4 is a little known wrinkle regarding the use of a DAF to pay down a donor pledge, which is prohibited by the IRS since the donor already took the deduction when paying into the DAF.

[carolcareaccountingservices-com]

Great article on DAFs. Claire Axelrad’s legal background helps her explain this complex area. Another interesting caveat is that a DAF cannot be used to make a “bifurcated payment” such as for a ticket to a fundraiser that includes a tax-deductible gift and a portion for non-deductible donor benefits, such as the value of a meal.

[Riley]

Based on my experience with donor databases, the boss’s approach misses the relationship. Thanking only the administrator is like thanking the postman for a birthday card. Hard credit the fund, soft credit the individual, and send a warm personal note to the donor who directed the gift. Just skip tax-deductible language and benefits talk to keep the IRS happy.