Charitable Fund Options - Donor Advised Funds | InFaith Community Foundation

Charitable Fund Options

Donor Advised Funds

A charitable fund at InFaith Community Foundation provides a flexible and effective way to support a donor's favorite charities and causes.  Donors can even put plans in place now and give when the timing is right.

What is a Donor Advised Fund or Charitable Fund?

Donor advised funds are one of the fastest growing charitable giving vehicles in the United States because of their giving flexibility and effectiveness. Through a donor advised fund, often referred to as a charitable fund, donors make gifts to the sponsoring public charity, in this case InFaith Community Foundation. Donors receive charitable tax deductions as they make gifts to your charitable fund and can then request grants to IRS qualified charities at times of their choosing.  More: Donor Advised Fund Policies & Guidelines.

How It Works
  • Give - Give Now, Give Later, Give & Receive, with maximum tax benefits based on when and how you give.
  • Grow - Grow the charitable fund through sound stewardship.
  • Grant - Donors grant to their favorite charities and causes, when and how they wish.
  • Watch this explainer video to learn more about bundling your charitable gifts.
How to Establish a Charitable Fund at InFaith
  1. Create a Fund online, or return the Fund Workbook and send it to the InFaith.
  2. InFaith drafts a Fund Agreement based on charitable requests made by the donor, and sends it to the donor for signing. Their financial representative also receives a copy.
  3. For gifts of stock, include copies of either the stock certificates or the most recent brokerage statement. InFaith will contact you with specific instructions on how to transfer the stock
  4. For gifts of cash, do not send a check now.  You may send it after Fund Agreement is signed.
  5. Charitable funds can also be established with gift assets that occur upon death, such as gifts made through your will or living trust, life insurance and/or beneficiary proceeds. (see other Steps of Giving for details)
  6. The signed Fund Agreement is returned to InFaith.  We countersign and send a copy.  (Donor may send initial contribution with Agreement, or later.)
Target Audience
  • Clients seeking an immediate charitable tax deduction and flexibility to direct giving to a variety of charities over time;
  • Individuals and families seeking an affordable alternative to private family foundations;
  • Clients wishing to promote family philanthropy, with an opportunity to name successor advisors such as children, grandchildren, siblings or friends (Upon the death of living advisors, donors can name specific charities or causes to continue receiving grants in perpetuity.); and
  • Individuals/families who already have private foundations and want to reduce the administrative burdens.
Tax and Financial Benefits of Creating a Donor Advised Fund
  •  A donor advised fund can be established with no fund minimum using direct gifts of cash, publicly-traded securities, real estate and/or closely-held stock.
  •  The donor receives a charitable income tax deduction in the year of the gift. For gifts of cash, the annual deduction limit is 60% (for gifts January 1, 2018 and thereafter) of the donor’s AGI.
  •  For gifts of long-term appreciated securities and real estate, the annual deduction limit is 30% of the donor’s AGI.
  •  Unused charitable deductions may be carried over an additional 5 years.
  •  Donors, family members and friends can also make additional outright and deferred gifts to the fund over time.
Benefits to you, the FINANCIAL PROFESSIONAL

 

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