What is a donor-advised fund?
Donor-advised funds allow you to make a tax-deductible transfer of cash, marketable securities, or other assets that are immediately eligible for a charitable deduction. Then, you can recommend grants to your 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 for tax-free growth
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:
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, grow the proceeds for your own grantmaking, and even leave a legacy for children and grandchildren to continue your philanthropic commitments
Request that grants 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 have opportunities to collaborate with other donors who share similar interests. In addition, you’re supported in strategic grantmaking, 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 most significant impact
Discover ways to involve your family in your giving
