(The article below is for information purposes only and is in no way intended to serve as legal, accounting, or other professional advice. For specific information regarding your legal or tax situation, please consult your own attorney or tax advisor.)

The Donor Advised Fund (DAF) is becoming increasingly more popular as a charitable giving vehicle, and with good reason. They provide donors with a “one-stop shopping” method of giving to their favorite charitable organizations. Basically, here’s how they work: A person gives money to establish an account with a Donor Advised Fund, receives a tax deduction from the DAF for the gift per IRS regulations, and then, when ready to do so, the person requests/advises that the DAF make a contribution to the charitable organization(s) of his or her choosing, like say, The Purdue Foundation/Purdue University.

However, there are certain restrictions that apply when directing a gift from a DAF to a charitable organization which can disqualify the contribution (meaning that the organization could not legally accept the contribution). Since an individual has already received a tax benefit from the DAF at the time the dollars were given to establish an account, the individual cannot receive any benefits from the organization which he or she has requested that the DAF support. The John Purdue Club, unfortunately, falls into the "restrictions" side of the equation because of the perks or benefits which accompany membership in the Club.

Below are a few of the basic restrictions which prohibit donors from using DAF contributions to satisfy their John Purdue Club membership:

•     Any admission to or special treatment at events including preferred seating or parking privileges. This includes any JPC member who has preferred seating or parking at any of our sporting events.

•     Any goods or services (including special access) received as part of  membership. This includes JPC members’ receipt of Gold and Black Illustrated.

•     Any outstanding personal pledge or pledge payment may not be satisfied via DAF contributions. Standing pledges are considered a personal obligation by the IRS and thus disqualified.