DONOR ADVISED FUNDS
A donor advised fund offers interested donors an easy and affordable way to simplify their charitable giving, become more involved in local philanthropy, and not incur unnecessary expenses in the process.
Many donors consider donor advised funds an attractive alternative to establishing a separate private foundation. Donor advised funds at a local community foundation make sense for a variety of reasons: from being connected to the local nonprofit community and receiving personal, local service, to receiving greater tax benefits and discovering more local giving opportunities than they might find on their own.
HOW IT WORKS
Many donors choose to create a donor advised fund to "test the waters" with their local community foundation. It is an easy way to learn more about how a community foundation helps donors become more involved in local philanthropy.
A donor advised fund allows donors to receive immediately a full charitable tax deduction for their initial contribution. Once the fund is established, a donor may periodically recommend grant recipients. Our board of directors must approve these grant recommendations, but ordinarily will do so without difficulty, as long as the recommendations are confirmed to be truly charitable organizations.
We periodically inform donor advisors of giving opportunities available through our foundation. This two-way street allows local nonprofits to connect with a wider audience of potential donors, and it allows local donors to learn more about local needs they might not discover on their own.
To learn more about donor advised funds and their possibilities, please contact us.