Donor Advised Funds

"I am of the opinion that my life belongs to the community, and as long as I live it is my privilege to do for it whatever I can." - George Bernard Shaw

A donor advised fund can be created by one or more individuals or by an organization such as a service club. For donors who want to avoid the expense and administrative burdens of creating a private foundation, (see Private Foundation Options) but who want to involve their family in local charitable giving, a donor advised fund is frequently an attractive alternative. Using a donor advised fund, you can make a donation to your fund, receive a tax deduction in the year of the donation, and your family can remain actively involved in the fund’s charitable grantmaking for future generations. A donor advised fund at The Community Foundation can make grants to any charity in the United States, including houses of worship, schools and universities.

Donor-advised funds can be endowed (meaning that only the earnings—and not the principal—are used to make grants) or non-endowed (distributions can be made from both principal and income).

The purpose of a donor advised fund is to involve contributors in the charitable activities of the Foundation. These funds allow donors to make recommendations for support of local (and sometimes non-local) charitable agencies. The Foundation conducts due diligence to determine that the recommended grantee is tax-exempt. All grant recommendations are reviewed by staff and require approval by the Foundation’s Board of Directors in accordance with industry regulations.

Advantages of Donor Advised Funds
A Word on Payout

For more information contact President/CEO, Dan Baldwin or call 831.375.9712 x115.