Donor Advised Funds
A donor-advised fund is a charitable giving vehicle administered by a public charity like the International Community Foundation and created for the purpose of managing charitable donations on behalf of an individual, family, or company. A donor-advised fund offers the opportunity to create an easy-to-establish, low cost, flexible vehicle for charitable giving as an alternative to direct giving or creating a private foundation. Donors enjoy administrative convenience, cost savings, and tax advantages by conducting their grantmaking through a donor advised fund.
A Donor-advised Fund may be established with a minimum $5,000 contribution. Once you meet the minimum and your fund is established, you can continue to add to it anytime, receiving tax benefits with each new gift.
Donor advised funds may be established by individuals and couples. Groups of friends can come together to established donor advised committee funds. Our Foundation also offers donor advised corporate funds to companies interested in making a difference in the communities and regions in which they operate internationally.
For a list of existing donor advised funds at the Foundation click here
There are certain guidelines and regulations associated with donor advised funds. By law, all funds held in a donor advised fund are subject to the discretion and control of the International Community Foundation. Donors are able to conveniently make grant recommendations to provide funding to any U.S. public charity or any non-U.S. charity that has been determined by ICF to be a 501c3 equivalent.
What is not permissible through a donor advised fund:
- Grants to organizations or associations that are NOT either 501c3 nonprofits or in the case non-U.S. charities cannot be validated as 501c3 equivalent organizations;
- Charitable expenses
- Grants to individuals
- Self dealing
For more information on the regulation associated with Donor Advised Funds, please click here:
- Technical Explanation of the U.S. Pension Protection Act of 2006. See Section entitled. Improve accountability of donor advised funds: (secs. 170, 508, 2055, 2522, 4958, 6033 and new secs. 4966 and 4967 of the Code)
http://www.jct.gov/x-38-06.pdf#page=273 - IRS Study on Donor Advised Funds and Supporting Organizations (2007):
http://www.irs.gov/charities/charitable/article/0,,id=167603,00.html
