Donor Advised Funds
Many donors choose to recommend a gift to Madison from a Donor Advised Fund.
What is a Donor Advised Fund?
A direct donor-advised fund, or DAF, is a philanthropic vehicle for individuals, families and businesses, providing a means to donate cash, publicly-traded stock, and, in some cases certain liquid assets, to a public charity. It allows the donor to make a charitable contribution and receive an immediate tax benefit.
Recommend a gift to Madison Square Boys & Girls Club:
Recommend a gift to Madison now through your donor advised fund using DAF Direct. Simply enter the amount and click next to complete your recommendation. Please note that Madison may not receive notification of your gift and its purpose if received through a Donor Advised Fund. Please email Anna Phewa, Major Gifts Officer, aphewa@madisonsquare.org to notify Madison of your gift.
What restrictions exist for Donor Advised Funds?
The donor will not receive an income tax charitable deduction when a grant is made to Madison from a donor-advised fund since the tax benefit was already received when donating to the DAF.
A grant from a DAF cannot be used to fulfill a legally enforceable pledge or result in the donor or any related party receiving more than an incidental benefit. Raffle tickets, tickets to special events, auction items, and benefits conferred in connection with the DAF grant are not permitted. This includes partial payment of a table, ticket or sponsorship of Madison’s special events.
The Pension Protection Act of 2006 imposes stiff penalties in the form of excise taxes for DAF sponsors as well as DAF donors for violation of the rules governing permissible distributions from DAFs.
For more information about IRS guidelines, see IRS Donor-Advised Funds Guide Sheet Explanation.