Donors want to know: “Can I sponsor your event through my donor-advised fund?”

Written by Jennifer Turner, Vice President of Philanthropy  

It’s no secret that events can help drive fundraising revenue, build community, and foster engagement among your current donors and potential donors. One study even noted that 81% of U.S. donors attend fundraising events every year. As you plan your next gala or golf tournament, keep in mind the special rules that apply to receiving support from donor-advised funds, including within the CICF Collaborative (which includes Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) or elsewhere.  

Here’s how this works:  

If a donor is hoping to support your event through a donor-advised fund, the donor cannot receive in return what the IRS calls “more than an incidental benefit.” This means that dollars going toward rounds of golf, meals at a gala, t-shirts, and raffle tickets are not only not tax deductible, but also that a donor-advised fund cannot pay any portion of that ticket or sponsorship–not even the tax-deductible portion. It’s important to be aware that the IRS prohibits this type of “bifurcation.”  

Remember, however, that donors can still give to your organization to help celebrate your event so long as they waive all benefits that go beyond incidentals. Acknowledging and recognizing donors are considered incidental, which means you can (and should) mention the donors in your materials and thank them at the event. If a donor would like to attend the event, the donor can certainly purchase tickets using their personal funds.  

The CICF Collaborative is your partner in making a difference. Please reach out anytime to learn more about how donor-advised funds work. Happy party planning! 

About the CICF Collaborative 

CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more » 

About the Author 

Jennifer Turner has a passion for creating partnerships and connections within the community to create meaningful impact. As vice president of philanthropy at CICF, she helps support more than 1,300 families, companies, and not-for-profits design philanthropic plans that are both meaningful and impactful. With expertise in fundraising, capital campaigns, planned giving, and more, Jennifer helps organizations of all kinds maximize their missions and ensure their long-term sustainability.