A giving circle fund at InFaith Community Foundation provides a way for friends, family members or co-workers to collectively support charities and causes.
What is a Giving Circle or Giving Circle Fund?
A giving circle is a group people who pool charitable gifts to achieve a greater impact. As a group, members make decisions on what organizations to grant to and witness the change their charitable gifts make. Donors make gifts to an IRS-qualified public charity, in this case InFaith Community Foundation (in the form of a donor advised fund), and receive charitable tax deductions. InFaith administers the gifts, holds or invests the assets and offers support and resources to the giving circle. More: Giving Circle Fund Policies & Guidelines.
How It Works
- Give - Give Now, with maximum tax benefits based on how you give. Many giving circles request an annual gift from each member.
- Grow - Grow the charitable fund through inviting others and/or investing the giving circle’s assets.
- Grant – Giving circle members determine grants to selected charities and causes, when and how they wish.
How to Establish a Giving Circle Fund at InFaith
- Create a Fund online, or download and complete the Giving Circle Fund Workbook (and mail to InFaith).
- InFaith drafts a Fund Agreement based on the type of giving circle selected and sends it to the chair/fund advisor for signing. The financial representative also receives a copy (if applicable).
- 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.
- For gifts of cash, do not send checks now. You may send a check after the Fund Agreement is signed, or members have been invited to give online.
- The signed Fund Agreement is returned to InFaith. We countersign and send a copy to the chair/fund advisor, along with toolkit and resources for beginning your giving circle.
- Church small groups/Bible study groups;
- Networking/professional associations;
- Families seeking an affordable alternative to private family foundations;
- Social groups seeking additional ways to connect;
- Deepen relationship and educate themselves about philanthropy; and
- Supporters of charitable organizations, brought together to leverage their giving (i.e. alumni groups, parents, volunteers).
Tax & Financial Benefits of Creating a Giving Circle Fund
- A Giving Circle Fund can be established with as little as $200/person using gifts of cash or publicly-traded securities or other assets. (Giving Circle Fund minimum applies.)
- Each 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, and the donor avoids paying any tax on the gain.
- Unused charitable deductions may be carried over an additional 5 years.
- Giving circle members may choose to make additional outright and deferred gifts to the fund over time, or create their own donor advised fund.
Resources to Support Your Work
- Giving Circle Fund Options
- Your Values Your Giving
- Giving Options & Benefits
- Give Now, Give Later, Give & Receive
- Create a Fund at InFaith online, or download Fund Workbook
- Your Plan for Giving
- Request Materials