DONORS – Donor Advised Funds

Your Personal Grant Making Opportunity

What is a Donor Advised Fund (DAF)?

• One of the fastest growing areas of community philanthropy.
• Allows donors a simple way to create a Fund that acts like their own private foundation.
• A low-cost local charitable giving vehicle used to manage charitable donations for an organization, family or individual.
• Allows donors to begin building a Fund that can leave a permanent legacy for the causes they value and cherish.
• An alternative to direct giving or creating a private foundation.
• Allows donors to make deductible gifts now, but recommend gifts to select charities at a future time.
• Donor choice and flexibility are a hallmark of these Funds.
• Anonymity, when desired.
• Over 60% of grants made from Donor Advised Funds remain in the local community.

How do they work?

• Can be established by individuals, families or a business.
• Maximum tax-deduction received at the time of gift, and with future contributions.
• While IRS regulations stipulate a donor cannot receive a deduction and retain future control over contributions, the Foundation has full control over the Fund and provides the donor with “Advisor” status to recommend grants to be made from the Fund.
• With an administrative fee of 1%, the Foundation covers administrative costs. (➔picture of administrative work being done by CFWC?) This includes staff, record-keeping, distribution of checks; and due diligence on charities to be funded.
• We provide expertise and advice on local grant making options to donors, when desired.
• A permanent Legacy can be established with this named Fund if the balance exceeds $100,000, including estate gifts designated to the Fund.
• Donor Advised Funds ARE NOT used to satisfy a donor pledge, fund individuals, or buy sponsorships or ‘tables’ for fundraising events.

Easy to set-up

• No-cost simple agreement signed to name Fund, Advisors and Successors.
• Minimum gift of $10,000 for which you receive maximum tax-deduction and 5-year carryover.
• Assets are professionally invested.
• Recommend grants to any charitable organization at any time desired, with no minimum 5% annual payout as required with private foundations.
• Receive quarterly fund statements showing investment results, administrative fees charged, additional contributions made and grants disbursed.
• No legal or IRS filing or reports are required.