Legal Information

What requirements must our foundation follow for substantiating contributions to donor-advised funds?

To claim a charitable, gift or estate tax deduction for any contribution to a donor-advised fund, donors must obtain a contemporaneous written acknowledgement from the sponsoring organization that states: “The [insert name of charity] has exclusive legal control over the contributed assets.” This statement can be added to gift substantiation letters to donors.

This is in addition to the general substantiation requirements outlined in IRS Publication 1771, Charitable Contributions—Substantiation and Disclosure Requirements.