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 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. A donor advised fund is simpler, more flexible and less costly than a private or family foundation.

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

You can add to the fund at any time, or include the fund in a legacy gift through your estate.

Investment Management

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

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 through our customized philanthropic services 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 60% 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	You must arrange and support your own grantmaking and monitoring structure CFMC can assist with grantmaking through customized philanthropic services
Distribution Requirements	No minimum payout required	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 CFMC’s $190 million portfolio	Invested as its own entity. Diversification is based on asset size.