INSTRUCTIONS FOR USE
Please use this form when requesting a grant distribution from your Donor Advised Fund. An AAF staff member will contact you to confirm this request upon receipt.
Upon receipt of your request, the Amarillo Area Foundation staff will review the form to ensure that all necessary information is included and verify that the organization is a nonprofit organization in good standing with the IRS. Following board approval, a grant is made to the organization. Included with the check will be a letter identifying your Fund as the source of this grant.
REQUESTS THAT DO NOT MEET IRS REGULATIONS (Please read carefully.)
We appreciate the opportunity to assist you in your charitable giving. As a part of that service, it is important to comply with IRS regulations regarding Donor Advised Funds. In exchange for an irrevocable gift to a Donor Advised Fund, you received a tax deduction. To preserve the integrity of that deduction, The Amarillo Area Foundation cannot honor certain grant requests. Following is an explanation of requests that would NOT qualify.
• Memberships: this request would result in a membership benefit to you. There are specific IRS rules regarding the deductibility of contributions for which donors receive a benefit. For example, when an individual pays for a membership to an organization and receives parking privileges, then the amount of the membership less the value of the parking privileges becomes the deductible amount. The rules are no different for contributions to Donor Advised Funds. Since donors receive a full tax deduction when a contribution is made to a fund at Amarillo Area Foundation, a Donor Advised Fund may not be used to pay for memberships in which the donor receives goods or services in exchange.
• Dinners/Events: the request would result in a benefit to you. There are specific IRS rules regarding the deductibility of contributions for which donors receive a dinner as part of the cost of the ticket, then the amount of the ticket less the value of the dinner becomes the deductible amount. The rules are no different for contributions to Donor Advised Funds. Since donors received a full tax deduction when the contribution is made to the fund at Amarillo Area Foundation, a Donor Advised Fund may not be used to purchase tickets or tables to galas or any other type of Charitable contribution in which the donor receives goods or services in exchange. The Amarillo Area Foundation is dedicated to protecting the charitable deduction of your gift.
• Grants to Individuals: no grants can be made from a Donor Advised Fund to an individual or an entity for a specific individual. Examples may include for a scholarship award, grants to private foundations and grants for non-charitable purposes.