Donor Advised Funds

Donor advised funds help you turn your generosity into impact. You receive guidance and personalized service from our experienced and dedicated team to meet your philanthropic goals. A donor advised fund can be created quickly and easily with a gift of $5,000 or more and is simpler, more flexible and less costly than a private or family foundation.

If you’re lucky enough to be able to give, you do. It feels good. If the people that can give do, it helps everyone. Giving through the CFMC is easy. We know it’s well-run for the long term. When we’re not here, we know it’s still going to be here. The Community Foundation is a real gift to the community,

Benefits of Donor Advised Funds

Tax Benefits

You make a gift to the CFMC and receive an immediate tax benefit. A fund is established in your name, in the name of your family or business, or in honor of any person or organization you choose.

Grantmaking Support

  • You recommend grants from your fund to support the causes and organizations you care about.
  • You can make grants to organizations throughout the country and internationally.

Philanthropic Services

  • Take advantage of our professional program staff’s deep community knowledge to inform your grantmaking.
  • Take advantage of our online grant portal to view your fund’s statement and investment performance, research organizations, and recommend grants.

Easy Administration

  • We handle all administrative details and issue grants to nonprofits in the name of your fund.
  • Donor advised funds are less costly and easier to administer than other forms of philanthropic giving (such as family or corporate foundations).

Flexibility

Investment Management

Your fund can benefit from inclusion in our investment poolsincluding our primary, medium term, and ESG portfolios, or you can maintain an existing relationship with your trusted investment advisor with Donor Recommended Investment Management.

Giving with Purpose – Ken and Mary Wright

Donor Advised Fund or Private Foundation?

There are many advantages to carrying out your philanthropy through a donor advised fund with us. Some private foundations utilize a donor advised fund to facilitate their grantmaking. We also offer a wide range of customized administrative and grantmaking services for private and family foundations.

Community Foundation Donor Advised Fund

  • You make a gift to the CFMC and recommend grants to qualified nonprofit groups.
  • Can involve multiple generations

Private Foundation

  • You appoint a board, which controls investments and grantmaking.
  • CFMC can assist with grantmaking, finance, accounting and administration through our customized philanthropic services
  • Can involve multiple generations

Community Foundation Donor Advised Fund

  • Public charity
  • Benefits from CFMC’s 501(c)3 nonprofit status

Private Foundation

  • Private charity
  • Apply to IRS for private foundation tax-exempt status

Community Foundation Donor Advised Fund

  • Up to 60% on adjusted gross income on cash
  • Up to 30% on appreciated stock
  • Up to 30% on real estate and closely held stock

Private Foundation

  • Up to 30% on adjusted gross income on cash
  • Up to 20% on appreciated stock
  • Up to 20% on real estate and closely held stock

Community Foundation Donor Advised Fund

  • Professional philanthropic services staff with local expertise
  • grantmaking  support
  • research
  • verification of nonprofit status
  • accounting  services
  • marketing

Private Foundation

  • You must arrange and support your own grantmaking and monitoring structure
  • CFMC can assist with grantmaking through customized philanthropic services

Community Foundation Donor Advised Fund

  • No minimum payout required

Private Foundation

  • 5% annual minimum payout

Community Foundation Donor Advised Fund

  • None

Private Foundation

  • Several thousand dollars for legal and accounting expenses and filing fees

Community Foundation Donor Advised Fund

  • Immediate

Private Foundation

  • Typically several months

Community Foundation Donor Advised Fund

  • $5,000 minimum (non-endowed)
  • $25,000 minimum (endowed)

Private Foundation

  • Typically millions of dollars

Community Foundation Donor Advised Fund

  • CFMC handles all administration and reporting.

Private Foundation

  • Legal, accounting and federal filing fees.
  • Annual 990 tax form must be filed.
  • Excise tax of up to 2% of net investment earnings, other taxes may apply

Community Foundation Donor Advised Fund

  • All tax and financial information is private.
  • Donors may remain anonymous, if preferred.

Private Foundation

  • Must file detailed public tax returns on grants, investment fees, board, staff, salaries etc.
  • Identity of major donors is required.

Community Foundation Donor Advised Fund

  • Pooled with CFMC’s $190 million portfolio

Private Foundation

  • Invested as its own entity. Diversification is based on asset size.

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