Hello,
I'm searching for information on the IRS rules regulating the designation of gifts from donor advised funds. I know that a donor can't pay a pledge with a gift through their advised fund. Does anybody know where I can find the actual IRS language outlining this?
We are trying to put together a donor-friendly way to let people know that although we appreciate their DAF gifts, we can't use them to pay off a pledge.
Also, does anybody have a good work-around for this situation? Specifically, I'm wondering if it's common to write-off the remainder of a pledge, then apply the new gift to the same account/fund/project.
Any additional information or suggestions would be helpful.

Just curious, are your donors making a donation via a Community Foundation? We have pledge donors who pay via their fund at a Community Foundation, credit that amount to their pledge, but indicate on record and acknowledgement letter that it is through the Foundation, and leave off the tax-exempt statement in the acknowledgement letter. If your donors are not paying via a Community Foundation, I do not know the answer to your question. Best wishes.

Thanks for the reply, Yes the gifts are through a community foundation, and your method makes sense to me, but I think the IRS has some specific rules on how the situation has to be addressed. I'm looking for the exact citations and I'm coming up blank. Thanks again, Tricia Pekarna

We do the same thing as Watkins. We don't usually know when a donor makes a pledge that they are going to pay by donor advised funds. The individual does not get a IRS receipt but a letter stating the donation came through....My experience has been just never use the word pledge when talking to the donor advised fund if you are makig a follow-up call for some reason. RE allows pledge payments against an indivudal's pledge to be made by other entities. It is important when making the payment from a donor advised fund that you also enter soft credit the individual.