Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

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dak
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by dak » Mon Aug 06, 2018 9:39 am

i am associated with a 501 that supports the music program at a local high school and have a student in the program. We are largely ( but not completely) supported by donations from parents of students in the program. The way we handle this situation is simple:

1) No donation made to the 501 is attributed to support any specific student. All of the monies go into a common fund that is spent to the benefit of all of the students.

2) No student is excluded from any benefit or services funded by the 501 based on contributions from the parents. For example - when we fund raise for a trip, everybody goes or nobody goes. (Johnny is not excluded because his parents did not donate to the fund.)

3) Students and parents are not allowed to direct the expenditure of any funds. (Johnny's parents can not donate to the 501 and then "ask" us to purchase a new trumpet for Johnny to use.)

This approach has drawbacks from a fundraising standpoint, but has certainly kept us out of IRS trouble for many years.

aristotelian
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by aristotelian » Mon Aug 06, 2018 10:02 am

dak wrote:
Mon Aug 06, 2018 9:39 am
3) Students and parents are not allowed to direct the expenditure of any funds. (Johnny's parents can not donate to the 501 and then "ask" us to purchase a new trumpet for Johnny to use.)
And students and parents would not get their business logo on Johnny's trumpet case, correct? That is the biggest problem I see here with sponsoring a team.

dak
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by dak » Mon Aug 06, 2018 11:48 am

And students and parents would not get their business logo on Johnny's trumpet case, correct? That is the biggest problem I see here with sponsoring a team.
We do put sponsors logos on various items such as t-shirts and banners that are displayed at concerts, etc. We have never attached a logo to a piece of performance equipment, but I could see that happening in a subtle way for a large enough donation :happy . I don't see anything wrong with a "This trumpet sponsored by the dak family" being attached to an instrument, but there can be no expectation that the dak children will ever play that particular instrument. To be fair, in 7 years on the board of this organization, that issue has never come up.

The crux is that through our organization, donor dollars are never allowed to be directed to the benefit of a specific student. Parents cannot convert otherwise non-deductible expenses into income tax deductions by washing the dollars through our 501.

motorcyclesarecool
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by motorcyclesarecool » Mon Aug 06, 2018 2:25 pm

aristotelian wrote:
Mon Aug 06, 2018 10:02 am
dak wrote:
Mon Aug 06, 2018 9:39 am
3) Students and parents are not allowed to direct the expenditure of any funds. (Johnny's parents can not donate to the 501 and then "ask" us to purchase a new trumpet for Johnny to use.)
And students and parents would not get their business logo on Johnny's trumpet case, correct? That is the biggest problem I see here with sponsoring a team.
I think most people with objections to the OPs plan are fixated on the word sponsor, thinking of it as a quid pro quo transaction.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

Cruise
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by Cruise » Mon Aug 06, 2018 3:27 pm

motorcyclesarecool wrote:
Mon Aug 06, 2018 2:25 pm
aristotelian wrote:
Mon Aug 06, 2018 10:02 am
dak wrote:
Mon Aug 06, 2018 9:39 am
3) Students and parents are not allowed to direct the expenditure of any funds. (Johnny's parents can not donate to the 501 and then "ask" us to purchase a new trumpet for Johnny to use.)
And students and parents would not get their business logo on Johnny's trumpet case, correct? That is the biggest problem I see here with sponsoring a team.
I think most people with objections to the OPs plan are fixated on the word sponsor, thinking of it as a quid pro quo transaction.
You are correct. The OP clearly did not state or imply an advertizing or other relationship. In fact, he used the word "donation." The OP should be commended for seeking consultation regarding his plans.

Gill
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by Gill » Mon Aug 06, 2018 3:36 pm

In spite of all the discussion, the decision still lies in the hands of the DAF. If they won't make the grant it doesn't happen. OP can make the "gift" on his own, and take his chances with the deductibility.
Gill

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FIREchief
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by FIREchief » Mon Aug 06, 2018 3:44 pm

Gill wrote:
Mon Aug 06, 2018 3:36 pm
In spite of all the discussion, the decision still lies in the hands of the DAF. If they won't make the grant it doesn't happen. OP can make the "gift" on his own, and take his chances with the deductibility.
Gill
You are, of course, correct Gill; but I'm starting to think that some posters just really don't want to understand this. :beer
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

randomguy
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by randomguy » Mon Aug 06, 2018 4:07 pm

letsgobobby wrote:
Sun Aug 05, 2018 6:01 pm
randomguy wrote:
Sun Aug 05, 2018 3:31 pm
letsgobobby wrote:
Sun Aug 05, 2018 9:47 am
aristotelian wrote:
Sat Aug 04, 2018 11:24 am


One possible way around self dealing would be to specify that it not go to his kid's team, and sponsor some other team.
Well that is a big difference though, isn't it?

So OP, would you make this gift if you knew with certainty your gift could NOT be used for your son's team? If not, we've laid bare the charade.

Not much different than making a "donation" to my daughter's school district so she personally doesn't have to waste time fundraising for her trip to Europe.. "Please make sure little Janie's class gets this money... And send me my tax deductible receipt, please." That could hardly be considered proper. In contrast if I donated so the school district's contribution to the entire class (across all schools) benefited from needing to fundraise a lower amount, that would seem allowable.

For OP there can be no justification as a business expense, so the only option is as charitable donation, which doesn't fly for me.
Why isn't it proper? Does anyone have problems deducting the thousands of dollars they donate to a church that they attend? Donating to you directly is wrong. Donating to a group you are part of seems to be pretty acceptable in a bunch of cases. The part that seems really sketchy is that a bunch of these groups are considered tax deductible groups. But that is up to the IRS/society, not me.
The IRS has determined that benefits derived from a house of worship are spiritual, and not material.
And the IRS has also said that donating to a school/organization you belong to is still tax deductible if you want to avoid the whole religious angle. At some point it crosses over to self dealing but where that line is hard to say. Buying a bowling ball with your kids finger holes is pretty clearly self dealing. Buying 200 bucks of gas for 4 vans full of kids? Probably not.

If you fill out the form, I imagine every DAF will just verify that the 501c3 is registered and make the donation. The are going to take you are your word that you are not receiving any improper benefits. Here is what intuit (i.e. first google hit says on the subject): https://ttlc.intuit.com/questions/43134 ... pated-with

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gasdoc
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by gasdoc » Mon Aug 06, 2018 7:52 pm

I have no intention of hijacking this thread, but the discussion reminds me of a question I had about donating to a medical mission trip to Guatemala our daughter has registered for next summer. There is a required “donation” of $1000 to participate. The organization is a 501C organization. Although the donation is “required for participation,” the organization states that the donation is fully deductible. Should we be able to make the donation through our DAF? Thanks.

Gasdoc

Cruise
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by Cruise » Mon Aug 06, 2018 8:09 pm

gasdoc wrote:
Mon Aug 06, 2018 7:52 pm
I have no intention of hijacking this thread, but the discussion reminds me of a question I had about donating to a medical mission trip to Guatemala our daughter has registered for next summer. There is a required “donation” of $1000 to participate. The organization is a 501C organization. Although the donation is “required for participation,” the organization states that the donation is fully deductible. Should we be able to make the donation through our DAF? Thanks.

Gasdoc
Are you paying your own way to Guatemala?

Ultimately, it is up to the DAF, and whether you check the box that denies any personal benefit.

staythecourse
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by staythecourse » Mon Aug 06, 2018 8:41 pm

FIREchief wrote:
Mon Aug 06, 2018 3:44 pm
Gill wrote:
Mon Aug 06, 2018 3:36 pm
In spite of all the discussion, the decision still lies in the hands of the DAF. If they won't make the grant it doesn't happen. OP can make the "gift" on his own, and take his chances with the deductibility.
Gill
You are, of course, correct Gill; but I'm starting to think that some posters just really don't want to understand this. :beer
Not sure if it is so simple in terms of punishments if this example played out. Did some google sluething (if that is a word) and yes it is up to the DAF to make the grant or not. HOWEVER, if it is done and later found to be more then incidental benefit it is not so obvious who is penalized. Following this thread makes it seem the DAF would be liable. I cut and am pasting what I found on the punishments for incidental benefits via DAF:

Prohibited Benefit Tax (IRC §4967)
A donor, donor advisor, or related person may be subject to a tax penalty if they advise a distribution, or receive, directly or indirectly, more than an “incidental benefit” resulting from a distribution. The penalty tax is 125% of the prohibited benefit, and any prohibited benefit must be returned to the DAF. As an example, a distribution from a DAF to a college for payment of a donor’s child tuition would be a prohibited benefit warranting a penalty tax.

Furthermore, any fund manager (e.g., director, officer, or employee having authority or responsibility with respect to the act in question) who knowingly agrees to make a distribution that confers a prohibited benefit faces a 10% tax amount of the benefit amount, not to exceed $10,000 per transaction. Note, though, that taxes for a prohibited benefit will not be imposed if the taxes for an excess benefit transaction are imposed instead on the same transaction.


I am not good at reading legalese, but seems the donor or the advisor or both can be punished for making the contribution. It would seem there is liability the donor themselves even if done through the DAF if not caught by the DAF, but later caught by the IRS.

Am I not reading this correct? So simply saying "send the donation through a DAF and if it is not flagged by them you will be fine" doesn't look to be true. I don't have a DAF, but curious when making a grant from it does it ask to pledge that you are not receiving an incidental benefit? If not how would they know thus protect themselves against liability?

A link would be useful if anyone has it.

Good luck.
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Gill
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by Gill » Mon Aug 06, 2018 8:53 pm

Yes, there are penalties for both the donor and the DAF. I never claimed the donor was off the hook if the DAF made the grant, only that it would not be made at all unless the DAF approved.
Gill

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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by MikeG62 » Tue Aug 07, 2018 7:19 am

Gill wrote:
Sat Aug 04, 2018 5:29 pm

...The DAF has the responsibility to determine that all grants are to qualified charities. They don’t accept your word for it and I’ve seen them go to considerable lengths investigating the proposed grantee to determine it is a qualified charity.
Gill
My experienc exactly with the DAF I have set up with Fidelity.
Real Knowledge Comes Only From Experience

Gill
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by Gill » Tue Aug 07, 2018 7:31 am

MikeG62 wrote:
Tue Aug 07, 2018 7:19 am
Gill wrote:
Sat Aug 04, 2018 5:29 pm

...The DAF has the responsibility to determine that all grants are to qualified charities. They don’t accept your word for it and I’ve seen them go to considerable lengths investigating the proposed grantee to determine it is a qualified charity.
Gill
My experienc exactly with the DAF I have set up with Fidelity.
I had Fidelity actively involved with a grant of mine, including calling the charity and requesting various documentation. They don’t want to risk penalties and losing the tax exempt status of the DAF.
Gill

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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by cherijoh » Tue Aug 07, 2018 8:05 am

Gill wrote:
Tue Aug 07, 2018 7:31 am
MikeG62 wrote:
Tue Aug 07, 2018 7:19 am
Gill wrote:
Sat Aug 04, 2018 5:29 pm

...The DAF has the responsibility to determine that all grants are to qualified charities. They don’t accept your word for it and I’ve seen them go to considerable lengths investigating the proposed grantee to determine it is a qualified charity.
Gill
My experienc exactly with the DAF I have set up with Fidelity.
I had Fidelity actively involved with a grant of mine, including calling the charity and requesting various documentation. They don’t want to risk penalties and losing the tax exempt status of the DAF.
Gill
I'm sure that Fidelity, Vanguard, etc. are all doing their best to follow the IRS guidelines. So I would expect that OP will get asked if he currently has a family member participating in this sports association. Some grants (like to a local food bank or a national organization like the American Heart Association) are probably paid out with no questions to the person requesting the grant. (The DAF just has to verify that the organization is a nonprofit in good standing). To the doubters questioning Gill's experience: just because your grants have gone unquestioned doesn't at all mean that the OP's grant will be processed as smoothly.

I recall reading about some one-off charity that ran a DAF as well as doing remainder trusts (I may have wrong terminology) where you donate a chunk of money and you get the income generated from the trust for the rest of your life. The charity got in trouble because one of the donors to the DAF later formed a nonprofit of her own and was using grants from the DAF to provide operating expenses for her charity - including paying herself a salary. IIRC, the charity got in trouble with the IRS and stopped paying out on the trusts. Several of the people receiving payments from their trusts tried to sue the charity.

randomguy
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by randomguy » Tue Aug 07, 2018 9:05 am

Cruise wrote:
Mon Aug 06, 2018 8:09 pm
gasdoc wrote:
Mon Aug 06, 2018 7:52 pm
I have no intention of hijacking this thread, but the discussion reminds me of a question I had about donating to a medical mission trip to Guatemala our daughter has registered for next summer. There is a required “donation” of $1000 to participate. The organization is a 501C organization. Although the donation is “required for participation,” the organization states that the donation is fully deductible. Should we be able to make the donation through our DAF? Thanks.

Gasdoc
Are you paying your own way to Guatemala?

Ultimately, it is up to the DAF, and whether you check the box that denies any personal benefit.
At a high level, if something is deductible for an individual shouldn't it be ok for a DAF? If the DAF pays is a different issue but is there any case where I can take a deduction and legally the DAF can't make a contribution?

Travel for charity isn't considered a personal benefit (in general. 1 day of charity work and a 7 day vacation is a different story).

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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by inbox788 » Tue Aug 07, 2018 2:58 pm

investingholder wrote:
Sat Aug 04, 2018 7:23 am
I do not have my own personal business and my children do travel sports. Often we fundraise from local businesses for small sponsorships -- think dentist, realtor, etc. These funds go to the team's travel tournament fees, uniforms, and sometimes rental space for practices.

This year, I am thinking of "sponsoring" (giving a donation to) one of my children's travel sports teams this year. This would be above and beyond our team's fees to help with equipment, funds, etc.-- in the range of $200 to $500.

Can I do this via my DAF, or is that inappropriate because we are arguably getting a benefit? The overarching organization under which the team falls is recognized by the DAF as a 501(3)(c) charity - a local sports league.

If it is inappropriate, I can still do it via personal funds, and take the deduction right?
I don’t understand the confusion. Base on this description and the simplification of the question to can I use a DAF or take a deduction on a donation to a 501(3)(c) charity, the answer is clearly yes and yes. The charity being or using it for a sports league is immaterial afaik. Having a child participate in activity as part of a group is incidental imo and doesn’t change anything. Don’t overthink it and make it more complicated than necessary.

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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by Cruise » Tue Aug 07, 2018 3:40 pm

inbox788 wrote:
Tue Aug 07, 2018 2:58 pm
investingholder wrote:
Sat Aug 04, 2018 7:23 am
I do not have my own personal business and my children do travel sports. Often we fundraise from local businesses for small sponsorships -- think dentist, realtor, etc. These funds go to the team's travel tournament fees, uniforms, and sometimes rental space for practices.

This year, I am thinking of "sponsoring" (giving a donation to) one of my children's travel sports teams this year. This would be above and beyond our team's fees to help with equipment, funds, etc.-- in the range of $200 to $500.

Can I do this via my DAF, or is that inappropriate because we are arguably getting a benefit? The overarching organization under which the team falls is recognized by the DAF as a 501(3)(c) charity - a local sports league.

If it is inappropriate, I can still do it via personal funds, and take the deduction right?
I don’t understand the confusion. Base on this description and the simplification of the question to can I use a DAF or take a deduction on a donation to a 501(3)(c) charity, the answer is clearly yes and yes. The charity being or using it for a sports league is immaterial afaik. Having a child participate in activity as part of a group is incidental imo and doesn’t change anything. Don’t overthink it and make it more complicated than necessary.
Actually, the question was astute. The DAF asks for certification (checking a box) that nothing but incidental benefits are received. My DAF gives an example of an allowable incidental as a logo key fob. What the benefits accrued to a member of a sports team might be is only known by the OP. Depending on the size of the donation, it could be a key fob all the team members get, or it could be a free trip to see the Yankees in NYC.

staythecourse
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by staythecourse » Tue Aug 07, 2018 4:38 pm

Cruise wrote:
Tue Aug 07, 2018 3:40 pm
The DAF asks for certification (checking a box) that nothing but incidental benefits are received. My DAF gives an example of an allowable incidental as a logo key fob. What the benefits accrued to a member of a sports team might be is only known by the OP.
Much thanks. This is what I was looking for and surprised no one yet could answer that question. Of course, the DAF is going to do its DD but think folks are very naive to think they investigate every grant they are asked to make or willing to take on liability for unknowingly allowing a grant just because they did not have the "inside scoop" so to speak. If they did and were always perfect then there is no situation that the donor could be penalized as every incidental benefit would have been prevented by the DAF. This would mean there would be no situation a benefit could be "slipped through" so to speak. The only way then it could have happened is if the Donor advisor intentionally allowed it. The cut and paste I replied earlier shows a different penalty for the donor advisor for intentionally allowing grant which is a known benefit on the donor.

It makes sense that the most expeditious way of doing it is to ask for each grant to have a checkbox confirming that you are not knowingly receiving a benefit including any extra DD on their part.

Good luck.
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gasdoc
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by gasdoc » Tue Aug 07, 2018 8:13 pm

Cruise wrote:
Mon Aug 06, 2018 8:09 pm
gasdoc wrote:
Mon Aug 06, 2018 7:52 pm
I have no intention of hijacking this thread, but the discussion reminds me of a question I had about donating to a medical mission trip to Guatemala our daughter has registered for next summer. There is a required “donation” of $1000 to participate. The organization is a 501C organization. Although the donation is “required for participation,” the organization states that the donation is fully deductible. Should we be able to make the donation through our DAF? Thanks.

Gasdoc
Are you paying your own way to Guatemala?

Ultimately, it is up to the DAF, and whether you check the box that denies any personal benefit.
We are paying for our daughter’s flight to Guatemala, but the mission organization is paying for her expenses once she gets there. According to what others have posted here, it seems that any direct benefit is “incidental,” even though the contribution is required to be made for each participant. Even if all of her expenses were paid directly by us, it would be deductible since it is for charitable work, but it would be more convenient to pay through the DAF. Thanks.


Gasdoc

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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by Cruise » Tue Aug 07, 2018 10:16 pm

I'm wondering whether others' experience is similar to mine: I'm a recent contributor FIdelity's DAF. I find it a really easy way to give. Fidelity does make you check a box that certifies that nothing but incidental benefits are accrued. Do other DAFs require the same action?

On another tack, I've wondered about the incidental benefits myself. I can clearly understand that attending a golf tournament or a wine dinner exceeds "incidental," but how about receiving a sandwich?

Is incidental somehow defined with reference to the value of the donation? For example, If I were to donate 10K for a table at a wine dinner, does the dinner value become more incidental compared to only purchasing a single $150 ticket, $75 of which goes for the dinner expense?

I think it is great that we are all having this discussion. It not only shows that we contribute to charity, but we have a conscience.

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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by trueblueky » Wed Aug 08, 2018 4:01 pm

Cruise wrote:
Tue Aug 07, 2018 10:16 pm
I'm wondering whether others' experience is similar to mine: I'm a recent contributor FIdelity's DAF. I find it a really easy way to give. Fidelity does make you check a box that certifies that nothing but incidental benefits are accrued. Do other DAFs require the same action?

On another tack, I've wondered about the incidental benefits myself. I can clearly understand that attending a golf tournament or a wine dinner exceeds "incidental," but how about receiving a sandwich?

Is incidental somehow defined with reference to the value of the donation? For example, If I were to donate 10K for a table at a wine dinner, does the dinner value become more incidental compared to only purchasing a single $150 ticket, $75 of which goes for the dinner expense?

I think it is great that we are all having this discussion. It not only shows that we contribute to charity, but we have a conscience.
Per IRS instructions, you are to subtract your benefit from the amount you give in figuring the charitable donation deduction. On the $150 ticket that comes with a $75 dinner, deduct 150 -75 = $75. On the $10,000 table for eight that comes with eight $75 dinners, deduct $9400 and get a very detailed receipt because a cancelled check is not sufficient proof for a donation of more than $250.

Please note that you are not allowed to receive anything of value on a QCD from your IRA.

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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by LadyGeek » Wed Aug 08, 2018 7:10 pm

trueblueky wrote:
Wed Aug 08, 2018 4:01 pm
Please note that you are not allowed to receive anything of value on a QCD from your IRA.
The wiki has been recently updated to clarify this fact. See: Qualified charitable distributions - there is a new "Guidance" section .

(Thanks to trueblueky for providing the suggestion and a link to Morningstar video.)
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by LadyGeek » Wed Aug 08, 2018 7:17 pm

I want to address several comments related to Donor Advised Fund contributions. For the record, discussions of dishonest behavior or bypassing the law are totally unacceptable.

The intent is to understand how to do this within the existing legal framework; in which case this discussion can continue.

Everything is a matter of degree. The choice of using a tax deferred account, e.g. IRA, to avoid taxes during some period of time is one extreme, managing assets to qualify for Medicaid is the other. Gifting assets to avoid taxes is somewhere in the middle. The bottom line is to work within the legal framework. Ethics is the ever present elephant in the room.

The approach is to educate members on how to do things legally. State your points in a factual manner. If the intent strays from this objective, please report the post and we'll investigate.
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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by Cruise » Wed Aug 08, 2018 11:53 pm

trueblueky wrote:
Wed Aug 08, 2018 4:01 pm
Cruise wrote:
Tue Aug 07, 2018 10:16 pm
I'm wondering whether others' experience is similar to mine: I'm a recent contributor FIdelity's DAF. I find it a really easy way to give. Fidelity does make you check a box that certifies that nothing but incidental benefits are accrued. Do other DAFs require the same action?

On another tack, I've wondered about the incidental benefits myself. I can clearly understand that attending a golf tournament or a wine dinner exceeds "incidental," but how about receiving a sandwich?

Is incidental somehow defined with reference to the value of the donation? For example, If I were to donate 10K for a table at a wine dinner, does the dinner value become more incidental compared to only purchasing a single $150 ticket, $75 of which goes for the dinner expense?

I think it is great that we are all having this discussion. It not only shows that we contribute to charity, but we have a conscience.
Per IRS instructions, you are to subtract your benefit from the amount you give in figuring the charitable donation deduction. On the $150 ticket that comes with a $75 dinner, deduct 150 -75 = $75. On the $10,000 table for eight that comes with eight $75 dinners, deduct $9400 and get a very detailed receipt because a cancelled check is not sufficient proof for a donation of more than $250.

Please note that you are not allowed to receive anything of value on a QCD from your IRA.
I'm sure that you are quite qualified to offer the above advice, but I am confused about your reference to QCD. Perhaps this was general advice because nothing in my post had anything to do with QCDs.

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Re: Can I use my Donor Advised Fund to give extra cash to sponsor my kids travel sports team?

Post by trueblueky » Thu Aug 09, 2018 2:04 pm

Cruise wrote:
Wed Aug 08, 2018 11:53 pm
trueblueky wrote:
Wed Aug 08, 2018 4:01 pm
Cruise wrote:
Tue Aug 07, 2018 10:16 pm
I'm wondering whether others' experience is similar to mine: I'm a recent contributor FIdelity's DAF. I find it a really easy way to give. Fidelity does make you check a box that certifies that nothing but incidental benefits are accrued. Do other DAFs require the same action?

On another tack, I've wondered about the incidental benefits myself. I can clearly understand that attending a golf tournament or a wine dinner exceeds "incidental," but how about receiving a sandwich?

Is incidental somehow defined with reference to the value of the donation? For example, If I were to donate 10K for a table at a wine dinner, does the dinner value become more incidental compared to only purchasing a single $150 ticket, $75 of which goes for the dinner expense?

I think it is great that we are all having this discussion. It not only shows that we contribute to charity, but we have a conscience.
Per IRS instructions, you are to subtract your benefit from the amount you give in figuring the charitable donation deduction. On the $150 ticket that comes with a $75 dinner, deduct 150 -75 = $75. On the $10,000 table for eight that comes with eight $75 dinners, deduct $9400 and get a very detailed receipt because a cancelled check is not sufficient proof for a donation of more than $250.

Please note that you are not allowed to receive anything of value on a QCD from your IRA.
I'm sure that you are quite qualified to offer the above advice, but I am confused about your reference to QCD. Perhaps this was general advice because nothing in my post had anything to do with QCDs.
General advice.
I did not intend to hijack nor confuse.

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