Grantee Information

It is a donation from the Oregon Jewish Community Foundation.

A DAF fundholder advised (i.e. recommended, suggested) to the OJCF Board of Trustees that a grant be made to your organization for a specific purpose. The Foundation is not obligated to accept such advice from fundholders but takes it under very close consideration.

The award letter will include the exact name of the individual DAF from which it came. A sample name may be the “Schwartz Family Fund of the Oregon Jewish Community Foundation.” It may also be cited as the “Schwartz Family Fund of OJCF.”

Grants may be made to most organizations classified under IRC 501(c)(3) as public charities as well as to synagogues, public agencies (e.g. schools, libraries), and tribal entities. Projects that are fiscally sponsored by an eligible organization are also eligible. The small category of public charities not eligible to receive DAF grants are those that are further classified as non-functionally integrated type III supporting organizations.

A grantee’s mission and activities must align with the Foundation’s broad goal of having a positive impact in the world. OJCF places no restrictions on the religious affiliation or geographic location of grantees. The award letters that accompany grant checks state any specific restrictions. Most commonly these grants are for general support.

Yes. The IRS imposes many restrictions on DAF grants. The fundamental restriction is that fundholders may not receive more than an incidental benefit as a direct or indirect result of such grants. Grants that result in more than an incidental benefit and thus are not allowed include the purchase of event tickets, museum memberships, auction items, raffle tickets, and tuition payments. Furthermore, grants may not be used to support named individuals (e.g. to send a specific child to camp).

No. The IRS defines the word “pledge” specifically as a legally binding obligation. It is commonly associated with a signed pledge card. If such a grant satisfies a pledge, the disallowed benefit is the alleviation of a personal obligation. If your organization is talking with a fundholder about a non-binding commitment (i.e. not a “pledge”) the fundholder may inform you that s/he will “recommend a grant from a donor advised fund.” Many organizations include this option directly on their pledge cards. Paying a pledge through a fund may bring a penalty of federal excise taxes upon the individual fundholders as well as the Foundation.

It depends. If the membership does not come with more than incidental benefits (e.g. coffee mugs, t-shirts) then it is permissible. If the membership does come with more than incidental benefits (e.g. concert tickets, sports tickets) then it is not permissible. If the fundholder declines these membership perks, it is permissible. An important exception is that fundholders may recommend grants toward membership at synagogues and other places of worship. The IRS considers such membership to include only intangible benefits.

It depends. If there are more than incidental benefits associated with sponsorship then a grant is not allowed. For example, if a $250 sponsorship comes with two tickets to the event then no portion of the sponsorship may be paid through the fund. However, if the fundholder declines the tickets such payment is allowed.

No. If any portion of the ticket price is for non-charitable purposes (e.g. cost of a meal) then none of the ticket cost may be paid through a grant.

Yes. These restrictions apply to fundholders as well as their family members, Foundation staff, and other related parties.

It is preferred that you cite the formal name of the fund as stated in the award letter however another option in these instances is to cite the fundholder’s name with an asterisk or other signifier. At the end of your list state that the marked names made grants through philanthropic funds at the Oregon Jewish Community Foundation.

It is not necessary to send a tax receipt for such grants. Like your organization, OJCF does not deduct charitable donations so the standard substantiation is not required. Fundholders should not receive a receipt because the grant is not from the fundholder.

Many organizations who are successful at tracking these grants maintain two donor records for each DAF: one for OJCF, one for the fundholder. When a grant is received, it is accurately recorded as a donation from the Foundation while a soft-credit is applied to the fundholder. In this manner, the fundholder may be stewarded directly.

Please contact Danielle Stout, Accounting Administrator, at danielles@ojcf.org or 503-248-9328.