Can I use the resources of my Donor Advised Fund, then, to pay off a five-year pledge to an organization’s capital campaign?
No. The Catholic Foundation cannot make grants to satisfy pledges you have made to any charity. This is because, in accordance with the IRS, when you make a contribution to a Donor Advised Fund at The Catholic Foundation you are entitled to take the full amount as a tax deduction, as you have received nothing material in return for your investment. If, however, the Foundation satisfies your pledge, you will be receiving something in return for your contribution – release from an obligation. The Foundation can make grants of certain amounts over a number of years, but not in fulfillment of any pledge or other obligation. If you have a donor advised fund, you should not sign a pledge card without first discussing your charitable commitment and wishes with a Foundation professional.
