We at American Affinity follow strict guidelines in approving and accepting individuals/foundations that wish to partner with our Donor-Advised Funds.
Please note that American Affinity is in the process of applying for 501 C(3) and hence your funds may or may not be tax-deductible.
Per IRS:
Generally, a donor-advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account.
The IRS is aware of a number of organizations that appeared to have abused the basic concepts underlying donor-advised funds. These organizations, promoted as donor-advised funds, appear to be established for the purpose of generating questionable charitable deductions and providing impermissible economic benefits to donors and their families (including tax-sheltered investment income for the donors) and management fees for promoters.
Examinations of these arrangements may result in the following Service actions in appropriate cases: (a) disallow deductions for charitable contributions under Internal Revenue Code section 170 for payments to the fund; (b) impose section 4966 excise taxes on sponsoring organizations and managers of donor-advised funds; (c) impose section 4958 excise taxes on donors or managers of donor-advised funds; and/or (d) deny or revoke the charity’s 501(c)(3) exemption.
Additional information
We are pleased to announce that many, considered as a donor-advised fund of the American Affinity, have approved grants for relief to families towards emergency hardship faced by families who have lost the employed head of the family to COVID-19. American Affinity has provided services that included recipients’ authentication, validation, and follow-up and is not directly involved in the payments but has provided assistance. The donors are aware that their contribution to India Covid-19 Program if any, may or may not be tax-deductible and they have provided the funds in rupees directly to and as the need faced by the dependent families and children who lost their loved ones to COVID was very real and urgent.