Why create a Donor Advised Fund?
It provides a convenient and flexible tool for individuals, families, businesses, or groups who want to be personally involved in suggesting grant awards made possible by their fund. Donor Advised Funds are typically less costly and easier to administer than other forms of philanthropic giving (such as family or corporate foundations).
Plus, a Donor Advised Fund includes these benefits:
• You can establish a charitable legacy in your name, in the name of your family, or in honor of any individual or organization you select.
• You can also use a name for your fund which provides anonymity for your giving.
• You can recommend grants from your fund to causes within our tri-county area or anywhere in the United States!
• You know your gift will be carefully invested and managed via our proven stewardship practices.
• You are eligible to receive maximum tax benefits in the year your gift is made.
• Your gift can generate the long-term advantages of endowment funding—principal from your gift can be invested, not spent; investment income is then used to make grants.
• You can add to your fund at any time and receive tax benefits with each new gift.
The story of a Donor Advised Fund in action:
The history of our oldest endowed fund proves the value of establishing permanent, Donor Advised funds The Fund Creators made a tax-deductible gift, named the fund, and began making grants from a portion of the earnings. The fund is accounted for separately and is carefully invested and managed by the Community Foundation. A brief timeline of the fund tells the story:
- December 1995: Gift of $850,000 made to the Community Foundation
- Through March 2009, the fund earned $543,012
- Through March 2009, the donors awarded grants of $869,646