Is the organization excepted from classification as a sponsoring organization because its accounts or funds consist of amounts that may only be distributed to a single identified organization or governmental entity as described in IRC 4966(d)(2)(B)(i)?
• IRC 4966(d)(2)(B)(i) excepts as a donor-advised fund any fund or account that makes distributions only to a single identified organization or governmental entity. If an organization accepts a contribution of funds from a donor to be maintained by the organization in an identified account and disbursed as advised by the donor but only to a specifically named organization or government entity, the account would not be treated as a donor-advised fund. (Of course, the disbursement would have to otherwise qualify as furthering charitable purposes to be deductible.) Example: An endowment fund owned and controlled by a sponsoring organization that is held exclusively for the benefit of such sponsoring organization is not a donor-advised fund even if the fund is named after its principal donor and such donor has advisory privileges with respect to the distribution of amounts held in the fund to such sponsoring organization. • Accordingly, a donor that contributes to a university for purposes
Related Questions
- Is the organization excepted from classification as a sponsoring organization because its accounts or funds consist of amounts that may only be distributed to a single identified organization or governmental entity as described in IRC 4966(d)(2)(B)(i)?
- Are district funds distributed to the four high schools based on student population or in equal amounts?
- After my organization has been awarded a subgrant, how are the subgrant funds distributed?
