Leaving a Legacy
A Donor Advised Fund is established by a Donor making an irrevocable, tax-deductible contribution to the Foundation. It is called “Donor Advised” because distributions are made from the Fund when the Donor (or other advisor named by the Donor) suggests to the Foundation that distributions be made to qualified (tax-exempt) organizations. The recipient is informed that the distribution was made at the Donor’s request.
Why Establish A Donor Advised Fund?
- You qualify for a tax deduction when you make your contribution, deciding later which charities will receive distributions.
- The Foundation handles the details based on your suggestions.
- The Fund is a reserve account for future charitable distributions suggested by you.
- Assets are invested and the returns on investments are paid to the Fund tax-free.
- You can contribute non-cash assets, such as stock or real estate, and the Foundation sells the assets for the Fund.
- Contributions to or distributions from the Fund can be anonymous.
- You create a lasting legacy in the same of an individual, family or group.
What Amount is Required to Establish A Donor Advised Fund?
The minimum contribution to establish a Fund is $2,500. Additional contributions to the Fund can be made in any amount. Contributions can be made in any amount. Contributions can be made in the form of cash, stock, real estate, or other assets. Distributions from the Funds can be made when the Fund balance reaches $10,000.
The $10,000 balance must be made within 4 years from the date of the Fund Agreement. If that balance is not reached in 4 years, the Fund balance will be transferred to the Foundation’s General Fund to be used for grants to local qualified organizations or scholarships.
How Do I Establish A Donor Advised Fund?
- You and the Foundation review and sign your Fund Agreement; and
- You contribute $2,500 or more to the Foundation for your Fund.
For more information on Donor Advised Funds, please download our Donor Advised Brochure. (link to PDF)