Donor Advised Funds

Donor advised funds at the CFMC maximize the impact of individual, family or corporate giving and help you fulfill your philanthropic vision.

Donor Advised Fund Holders Anthony and Lary Lynn Muller

Working with the CFMC opened doors to find the right local people and agencies for the programs that are important to us. The CFMC’s efforts and community knowledge added considerably to their effectiveness. – Lary Lynn and Tony Muller

A donor advised fund is simpler, more flexible and less costly than a private or family foundation. A fund can be created quickly and easily with a gift of $5,000 or more. With our experienced and dedicated staff, the CFMC is a resource that provides information, advice and personalized service to help you meet your philanthropic goals.

Giving with Purpose – Ken and Mary Wright

Benefits of a Donor Advised Fund

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

Donor Advised Fund Holder F. Robert Nunes I chose to utilize the Community Foundation because of the high level of support I receive. I don’t have the administrative burden of a private foundation now and I’m confident my wishes will be carried out in the future. – F. Robert Nunes

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.

Compare Donor Advised Funds and Private Foundations

Community Foundation
Donor Advised Fund
Private Foundation
Involvement, control, and family continuity
  • You make a gift to the CFMC and recommend grants to qualified nonprofit groups.
  • Can involve multiple generations
  • You appoint a board, which controls investments and grantmaking.
  • CFMC can assist with grantmaking, finance, accounting and administration
  • Can involve multiple generations
Tax status
  • Public charity
  • Benefits from CFMC’s 501(c)3 nonprofit status
  • Private charity
  • Apply to IRS for private foundation tax-exempt status
Tax deductions
  • Up to 50% on adjusted gross income on cash
  • Up to 30% on appreciated stock
  • Up to 30% on real estate and closely held stock
  • 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
Grantmaking support
  • Professional philanthropic services staff with local expertise
  • grantmaking  support
  • research
  • verification of nonprofit status
  • accounting  services
  • marketing
  • No minimum payout required
  • You must arrange and support your own grantmaking and monitoring structure
  • CFMC can assist with grantmaking through customized philanthropic services
  • 5% annual minimum payout
Startup costs
  • None
  • Several thousand dollars for legal and accounting expenses and filing fees
Time frame
  • Immediate
  • Typically several months
Effective gift size
  • $5,000 minimum (non-endowed)
  • $25,000 minimum (endowed)
  • Typically millions of dollars
Administrative requirements
  • CFMC handles all administration and reporting.
  • 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
Privacy
  • All tax and financial information is private.
  • Donors may remain anonymous, if preferred.
  • Must file detailed public tax returns on grants, investment fees, board, staff, salaries etc.
  • Identity of major donors is required.
Investment
  • Pooled with $200 million portfolio
  • Invested as its own entity. Diversification is based on asset size.