DONOR-ADVISED FUNDS

“We love using our donor-advised fund to organize our giving. It is so easy to support our many favorite charities, keep track of everything, and give our accountant a single receipt at tax time.”

—Sally and James Inabnit

What is a donor-advised fund?

Donor-advised funds allow you to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction. Then, you can recommend gifts to favorite charities from the fund when the time is right.

  • A donor-advised fund operates a lot like a checking or investment account, just for charity

  • Your donor-advised fund is established according to specific IRS guidelines that create tax advantages and support ease of administration

  • Assets in the fund are invested to align with your investment philosophy and goals for the fund

Why is a donor-advised fund useful?

A donor-advised fund is easy to establish and maintain. With a donor-advised fund, you’ll enjoy:

  • 24/7 online access to view your account and recommend grants to your favorite charities

  • Ability to transfer highly-appreciated assets, benefit from an income tax deduction, avoid capital gains on the sale, and grow the proceeds for your own grantmaking and even to leave a legacy for children and grandchildren to continue your philanthropic commitments

  • Request that checks from your fund be sent to charities in your name or anonymously, depending on each situation

How does the community foundation help?

When you establish a donor-advised fund at the community foundation, you are part of a community of giving and you have opportunities to collaborate with other donors who share similar interests. In addition, you’re supported in strategic grant making, family philanthropy, and opportunities to gain deep knowledge about local issues and nonprofits making a difference. 

The team at the community foundation works with you to:

  • Select a name for your fund, whether your family name or something less specific

  • Create and execute a document that establishes your fund and designates successor advisors, such as your children, to step into your shoes upon your death or incapacity

  • Learn more about the causes you care about and how to make the biggest impact

  • Discover ways to involve your family in your giving

Your family’s philanthropic legacy

Why establish a donor-advised fund instead of a private foundation?

Establishing a donor-advised fund at a community foundation offers nearly the same functionality as a private foundation, in that you and your family members can use either vehicle to support your favorite charitable causes and organizations. A donor-advised fund, though, unlike a private foundation, provides maximum tax benefits (higher AGI limitations and fair market valuation for contributing hard-to-value assets), is not subject to excise taxes, and permits confidentiality (including the ability to grant anonymously to charities). As well, the experienced team at the community foundation handles accounting, bookkeeping, and filing requirements for an economical administrative fee, and our team serves as an experienced sounding board for your charitable decisions.

We’re here for you

Whatever your charitable giving goals may be, our team at the community foundation can help. We care about our community as much as you do. Our board of directors and staff are committed to understanding your perspectives on the challenges facing the quality of life in our region. Deeply familiar with local nonprofits, we can serve as a resource to help you give when, how, and to the causes you want. Our tools and back-office administration capabilities make it easy to keep your giving organized and tax-savvy.