Donor Advised Funds (e.g. United Way, Fidelity Charitable Gift Fund)
While it is generally permissible for donors to direct gifts to the UDAF through donor advised funds (DAFs)such as the United Way or Fidelity Charitable Gift Fund, there are restrictions imposed by the Internal Revenue Service (IRS) that impact certain types of DAF contributions, including those to support the University of Delaware Athletics Department.
By way of background, a contribution to qualifying DAFs (often held at community foundations) is treated by the IRS as charitable contribution at the time of the contribution to the DAF. The donor may then advise to which charitable organization(s) distributions are made, such as UDAF. Certain laws and IRS regulations prohibit a donor, donor advisor, or their family member from receiving more than incidental benefits as a result of the DAF distribution. The potential consequences of receiving impermissible benefits include jeopardizing the tax-exempt status of the entity maintaining the DAF and imposing significant excise taxes on the donor and/or their family member.
One of the impermissible benefits for a donor or family member to receive as a result of a gift made through a DAF is the right to purchase athletic tickets and/or preferred parking. Gifts to the UDAF at all membership levels provide member benefits including the opportunity to purchase UD athletics tickets and preferred parking. HOWEVER, a donor may still support UD Athletics through a DAF gift if the donor declines all benefits that would otherwise be provided as a result of the gift. If the donor also wishes to become a member of the Blue Hen Club and receive corresponding seating/parking benefits, a separate non-DAF gift may be made which results in the membership benefits.