Gift Policy FAQs
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.
Giving to the Phoenix Zoo through these sources is easy. Who do I contact to arrange?:
- DAF Grant: Simply contact your sponsoring financial or community institution to recommend a grant to the Zoo.
- IRA: Donors must instruct their IRA trustee to make the contribution directly to the Zoo.
- Private or Family Foundation: Each private and family foundation is unique, and we recommend you consult with the foundation administration or management regarding how a grant to the Zoo can be approved and paid.
RESTRICTIONS
Federal laws governing DAFs impose certain restrictions. It is important to be aware of these to make sure that a donation through a DAF meets your needs and charitable intent. The restrictions that most often impact donors concern pledges (new and existing), providing multi-year support and accepting donor benefits. The Zoo will not provide a DAF (or its donor) any benefits beyond “incidental” benefits, including special event tables/tickets or membership, in recognition of gifts paid with DAF funds.
Donating through a DAF limits the donor benefits you may receive. Because a full tax-deduction is received at the time of contributing to the DAF, donors may only receive “incidental” benefits or benefits which do not carry a financial value of $75 or more. The Zoo’s development team can share examples of the types of incidental donor benefits you may receive when you donate through a DAF.
Donors wishing to support the Phoenix Zoo through a membership such as a Supporting Member or Guardian Conservation Society Member, should be aware of the following:
A donor who pays for a membership through a DAF may receive membership benefits of only incidental value. If any of the membership fee is not tax-deductible, you may either waive all benefits or use a personal account to pay the entire membership.
Per the IRS, DAF grants must be made exclusively for charitable purposes with no more than incidental benefits to you or any third-party contributor. The IRS considers items/services less than $75 to be of incidental benefit.
Donors wishing to support the Phoenix Zoo through special events such as ZooFari or Wildlights for Wildlife – A Charity Drive should be aware of the following:
Event tickets and tables, as they have substantial fair market value, may not be purchased through a DAF. A DAF that supports such an event should waive any benefits associated with such support.
A donor may pay full price to attend an event (both non-deductible and deductible portions) from a personal account outside a DAF, family/private foundation, or retirement fund.
Subject to these restrictions, event donations through your DAF, family/private foundation or IRA are welcomed. Your event donations, including “shout out” donations can be made through a DAF. Notify the Phoenix Zoo and contact your fund’s sponsoring organization to clarify any required language to recommend the grant.
A donor wishing to use a DAF may only consider a non-binding pledge. The Zoo cannot accept contributions from a DAF, private foundation, or retirement account to satisfy a donor’s legally binding pledge to the Zoo. As the donor has given up legal ownership of the fund, they are prohibited from making a legally binding pledge from their DAF to the charity they want to support.
A donor who wishes to satisfy a pledge using a DAF, family/private foundation, or retirement account should submit a Letter of Intent form to the Zoo and include the following language: “I intend to recommend a grant from my DAF, private foundation, or retirement account. This notification shall not be construed as a legally binding commitment.”
The Phoenix Zoo recommends that donors notify us of their intent to recommend a grant, as it assists us with future planning.
FAQs
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.
Questions?
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 ltoth@phoenixzoo.org or 602.286.3881.
Phoenix Zoo Tax ID#: 86-0174843