Donor-Advised Funds

With a donor-advised fund, costs are minimal. Starting a donor-advised fund is free. You make your charitable donation to establish the fund, and the administrator charges a nominal annual fee, typically about 2%, to cover administration and investment fees – but only after you have received your full tax deduction for gifts to the fund.

For those who may not have the $5,000 minimum donation to give upfront, we also offer donor-advised starter funds. This flexible option allows you to streamline your charitable giving while building up your fund over time.

Donor-advised funds relieve you of all the work. The administrator handles all the due diligence, record keeping, check writing, gift acceptance and tax filings.

Donations to donor-advised funds are deductible up to 60% of adjusted gross income on gifts of cash, and 30% on gifts of appreciated assets like stock, mutual funds and real estate. Deduction limits on gifts to private foundations are 30% and 20%, respectively. Donating long-term appreciated assets to a donor-advised fund may even eliminate capital gains taxes.

Donor-advised funds give you time to plan and be strategic about your charitable giving. Establish or donate to your fund when it makes the most tax sense, then distribute grants from the fund when the right charity or project comes along. In the meantime, your donor-advised fund's assets will be invested, with earnings growing tax-free.

Support as many charities as you wish through your donor-advised fund. For tax purposes, you only need to track your contributions to the fund. Are multiple members of your business or family conducting charitable giving? By consolidating everyone's charity in a donor-advised fund, you can minimize confusion and duplication.

While private foundation giving is public record, grants made through donor-advised funds can be made anonymously if you wish. You can also name your fund in such a way that fully protects you from funding appeals.

Donor-advised funds make a statement. You can name them for your family or company, or in honor of a co-worker or loved one. They are also an effective way to encourage philanthropy among your family or employees. You can involve your children, grandchildren and even future generations of family members in your grantmaking and name them as successor advisors. You can also endow your donor-advised fund so it will grow in perpetuity and later select a specific nonprofit or cause for your fund to permanently support upon your death.