Donor advised funds and pledge payments

Maryann Snyder:

I've come across this situation for the first time and wanted to know if the same rulings apply. I've got a pledge commitment from a Family Foundation.  We just received a check from a donor advised fund intended to be used to pay down the pledge on the Family foundations record.

I know that DAF's can't be used to satisfy personal pledges/obligations... but does the same apply if the Family Foundation made the pledge?  Or is it just that a Donor Advised Fund cannot pay down a pledge of any type regardless of who made the commitment. 

 I've got a staffer that states it's okay to apply because the pledge came from the family foundation and is not an individual.

I don't agree, I think it still smacks of Self Dealing but I havent found any wording anywhere confirming whether DAFS can pay on a plede made by a family foundation.

Thoughts?

Maryann,

I would look on http://listserv.fundsvcs.org.  They have a lot of posts on family foundations and DAF.  I looked briefly but didn't find one addressing your situation. 

Melissa's is very knowledgeable on regs like this.  She's been missing from the forums this week.  Maybe on Christmas vacation.if you don't get satisfying responses, I'd suggest checking with your org's auditors or legal council. 

(PS-it's not necessary to double post your question.  Just extra email for forum subscribers. [:)] )