In December 2017, the Internal Revenue Service released a notice which has allowed a shift in Silicon Valley Community Foundation’s approach to grants from advised funds. Upon advice from SVCF legal counsel, SVCF will no longer ask the donor or grant recipient if a grant recommendation from an advised fund is being used to fulfill a pledge.
What does this mean for Fund Advisors to Donor Advised Funds and Corporate Advised Funds?
When you log into the SVCF donor portal to complete a grant recommendation form, the box asking if this grant will fulfill a pledge has been removed. In addition, the pledge language that appeared on paper and electronic grant recommendations has also been removed.
When is this change effective?
Immediately. The pledge language has already been removed, and no grant in process is being screened as to whether or not it is related to a pledge.
What are the benefits of this change?
Donors and fund advisors have more flexibility in the ways you can signal your support to nonprofit organizations and prospective grantees.
Is this change permanent?
The notice from the IRS provided guidance to donor advised fund sponsors, such as SVCF, that they could rely on the notice effective immediately. However, there is always the possibility that the IRS will come out with future notices or regulations that will prohibit the fulfillment of pledges from advised funds.
Who can I talk to about this change?
Please get in touch with your primary point of contact at SVCF so that he or she may help you navigate this change and what it could mean for your fund at SVCF.
Also, please share this information with your colleagues and partners who interact with donor advised funds or corporate advised funds at SVCF.