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    FAQ: How to Track Donations From Donor-Advised Funds

    In This Article:

      A donor-advised fund is a type of charitable account that individuals use to support charitable organizations that they care about and wish to support. Here's how it works:

      1. Donors contribute cash, securities or other assets to the donor-advised fund initiated at a qualified public charity that manages the account.
      2. Generally, the donors are then eligible for an immediate tax deduction from that account management organization.
      3. The account management organization provides them with tax documentation.
      4. Then, those funds can be invested tax-free.
      5. The account management organization essentially act as a grantor directed by the funder, who recommends disbursements to virtually any IRS-qualified public charity.

      Since the donor-advised fund essentially acts as a "bank account", and there can be only one primary Donor on a Salsa CRM Donation record, it is not advisable to have the account management organization as the primary Donor "hard credit". You would not give Soft Credit to a bank for generating a cashier's check that paid for a gift! Salsa recommends recording the funder as the primary Donor on a new Donation record in these situations. You should not record the account management organization as any kind of co-credit or soft credit. 

      Use the Donation Source field to track gifts in Salsa CRM as donor-advised funds.

      Source:

      1. "What is a Donor-Advised Fund (DAF)?" National Philanthropic Trust, 11/1/2018, https://www.nptrust.org/what-is-a-donor-advised-fund.
      2. "What is a donor-advised fund?"  Fidelity Investments Charitable Gift Fund, 11/1/2018,
      https://www.fidelitycharitable.org/philanthropy/what-is-a-donor-advised-fund.shtml.

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