Donor Advised Fund Information
Although Assistance League of Indianapolis accepts grants made through a DAF, we need to alert donors to the limitations on the benefits that they are eligible to receive when directing such grants be made. The most important thing to know is that donors cannot receive a personal benefit from DAF grantmaking. A personal benefit includes the fair-market value of free tickets that might be available to donors who give directly from a non-DAF account. Please see the following example.
Donors wishing to support Assistance League of Indianapolis by directing grants to special events such as the Holiday Luncheon and Mission Possible may not receive free tickets as a result of such donations. If a donor is wanting tickets to be included as part of the donation, the total gift or sponsorship must be made in two parts as follows.
- The ticket price (including both the tax-deductible and non-tax-deductible portions) must be paid from a non-DAF account.
- The remaining sponsorship cost may be funded by directing that a grant be made from a DAF. Note that a logo or name recognition in event material is considered to be an incidental benefit and is not considered to have a substantial fair market value.
If you have further questions regarding providing grants through your DAF, please contact your Accountant or Financial Planner.