Endowed Donor Advised Funds
With a minimum initial contribution of $25,000, an endowed donor advised fund can be established with a simple fund agreement letter in just one day. An endowed donor advised fund becomes part of the Community Foundation's endowment and is invested along with other endowed funds in a broadly diversified pool.
Donors may designate up to 50% of their endowed donor advised fund as distributable at the time the fund is established, provided there is at least $25,000 designated as non-distributable. Future gifts may also be divided between distributable (up to 50%) and non-distributable (not less than 50%).
Donors receive a charitable contribution deduction of up to 50% of adjusted gross income for cash gifts and up to 30% for gifts of appreciated securities, and any deductions that cannot be used in the year of the gift can be carried over under current law for up to an additional five years. The donor can share or designate the responsibility for recommending grants with a spouse or with children, thus creating a new vehicle for true "family philanthropy." Any corporation, civic organization, or other group that establishes a donor advised fund will have the ability to make grant recommendations for renewable periods of up to ten years.
The Foundation recommends that donor advised funds use the annual payout for grants each year. If a donor wishes to accumulate income for a period in order to make larger grants at a later date, the donor must specify in writing the purpose for which income is to be accumulated. In general, the principal of an endowed donor advised fund may not be invaded unless the Board of the Foundation has authorized such a provision at the Fund's inception. In no case will distributions of principal exceed 50% of the donated value of the Fund's assets, and at all times, the principal balance must exceed $25,000, after distributions. Unless otherwise approved by the Board, the minimum grant from an endowed donor advised fund is $500. A donor advised grant may be awarded to any eligible local, national, or international charitable agency including churches or schools.
For more information contact President & CEO, Dan Baldwin or call 831.375.9712 x115
Confirmed in Compliance with National