For Professional Advisors
Donor Advised Funds, or Charitable Giving Funds, operate much like private foundations without the administrative burdens or paperwork. Gifts to a Donor Advised Fund can be made during life, by bequest, or planned gift.
Here are the advantages:
- Local staff with in-depth knowledge to help your charitable giving strategy and goals.
- Contribute when needed, and receive an immediate income tax deduction.
- Enjoy a quick and easy set-up with no minimums.
- Make grant recommendations at your convenience to any qualified charity in the United States.
- The Community Foundation handles the paperwork for you by issuing payment to your chosen charities.
- Or - take advantage of online fund account access and grant distribution through your secure personal online grant portal.
- Select recognition or anonymity on a grant-by-grant basis, or for all of your activities.
- Select from many investment portfolio options, including personalized options with your own investment manager.
- Involve your children and other relatives to preserve a family tradition of giving back to the community.
Your Charitable Partner
Vicki Pugh, CFRE, CAP®
Vice President for Philanthropic Giving
For more information:
Clients often ask their advisors about private foundations. Our charitable giving experts are here to help you answer them.
Some of your clients who have an existing private foundation may be interested in the benefits of transferring it to the Community Foundation. Through a simple transfer process, your client may be able to avoid some of the hassles and costs of private foundation management.
There are two options to consider, donor-advised and other fund options, and two, a supporting organization option. Each approach allows your clients to remain involved in grant making if that is their desire. At the same time, they will be able to ensure their intent, name and pattern of charitable giving are maintained in perpetuity if they wish.
Section 507 of the Internal Revenue Code permits termination of a private foundation in either trust or corporate form with distribution of its assets to a public charity. The two primary requirements for the termination of a private foundation are, one, the private foundation must distribute all of its net assets to one or more tax-exempt organizations and two, each organization has been in existence for a continuous period of at least five years preceding the distribution. Our Community Foundation fulfills both of these requirements, and the private foundation's assets are typically used to establish a permanent donor-advised fund under a similar name.
Donor-Advised and Other Fund Options
Assets of a private foundation may be used to establish a donor-advised fund, unrestricted fund, field of interest fund, scholarship fund or designated fund. Depending on the type of fund established, the private foundation's Board of Directors often stays involved in setting grant-making priorities, advising on grant awards and assessing grant success.
Supporting Organization Option
Generally, it is possible for a private foundation with $2 million in assets to become a supporting organization of a community foundation. Besides easing the administrative and cost burdens of managing a private foundation, transferring it to a community foundation permits the private foundation to take advantage of many aspects of our public charity status.
The supporting organization option requires careful consideration by your client and our Board of Directors. We are ready to guide you and your client through the private foundation transfer process. Please call us at (561) 659-6800.
Director of Charitable Giving