Donor Advised Funds, Retirement Funds, and Private/Family Foundation Gifts
Thank you for considering a donation to the Phoenix Zoo. Gifts from a donor advised fund (DAF), private or family foundation and IRA accounts have become popular vehicles for charitable giving due to the favorable tax benefits they can provide and to centralize donors’ philanthropic giving.
The following is intended to answer some of the most frequently asked questions and inform you about important rules and restrictions adhered to by the Phoenix Zoo. This is not intended as legal advice. Donors should consult their fund manager, tax advisor, and/or legal counsel to determine any tax implications of a proposed contribution and understand restrictions that apply to these donations.
A donor advised fund (DAF) is a named charitable giving account you can set up under a public charity, most often a sponsoring financial or community institution such as the Arizona Community Foundation, Schwab Charitable, Fidelity Charitable or Vanguard Charitable Endowment, among others. To set up a DAF, you make an irrevocable gift of cash or other assets to the financial or community institution, receive a tax deduction, and as a “donor-advisor” may make non-binding grant recommendations to benefit the charities you care about.
An individual retirement account (IRA) can provide a tax-savings approach to donate to the Zoo. Donors 70½ years old and older can give up to $100,000 per year from an IRA directly to a qualified charity such as the Phoenix Zoo without it being considered a taxable distribution.
A private foundation is an independent legal entity set up solely for charitable purposes. Most private foundations fund charitable activities through grants and other gifts, typically to operational charitable organizations.
No. The IRS does not allow for bifurcation or “split gifts” to be made from a DAF. The fair market value of benefits cannot be paid by personal funds if the deductible portion of a contribution is paid for with a DAF.
Yes. U.S. law imposes an excise tax on any donor, donor-advisor or private/family member who recommends a grant that results in “more than incidental benefit.” The sponsoring agency (such as Fidelity Charitable, Vanguard Charitable Endowment, among others) can also be penalized.
Yes. A qualified charity such as the Phoenix Zoo may be recommended to receive funds upon the death of the donor. You should discuss this with your tax and estate planning counsel. Click here for more information.
Please contact Gift Planning Manager, Liz Toth with any questions about supporting the Phoenix Zoo through a donor advised fund, private foundation or retirement fund at email@example.com or 602.286.3881.
Phoenix Zoo Tax ID#: 86-0174843