Donor Advised Funds

What is a Donor Advised Fund?
A separately accounted for fund maintained by a charity where the donor or someone the donor chooses, may recommend grants to qualified charitable organizations, the amount and timing of those grants, and may advise the charity as to the investment of the money in the fund.

How do you Set it Up?
You give a minimum gift of $10,000 in cash, stock, or other property, sign a simple agreement, and the Foundation establishes a fund in your name or in the name of someone you wish to honor.

What are the Benefits of a Donor Advised Fund?

• You get an immediate tax deduction and eliminate capital gains taxes on any long-term appreciated property you donate

• You can do all your giving in one place

• The Jewish Community Foundation maintains your record-keeping

• You can pass the right to recommend grants from your fund to the next generation

• You have access to the resources and expertise of the Jewish Community Foundation to help connect your charitable passions with the needs of the community.

Frequently Asked Questions

1. Is a minimum balance required once the fund has been established?
No, however we recommend that you maintain a balance of $2,500.

2. Is a minimum contribution amount required once the fund has been established?
No. You may make contributions of any amount at any time that is convenient to you.

3. When is a contribution considered a charitable donation?
A contribution is complete when ownership of the asset is transferred to the Foundation. For gifts of cash that are sent via mail, this is the postmark date. For gifts of stock, this is the date the shares are transferred from your account to the Foundation's account.

4. What will I need for my tax records?
Each time you make a contribution to the Foundation, you receive a tax receipt letter - that's all you need.

5. What are the fees?
The Foundation charges an annual fee of $200 plus 1% for donor advised funds with balances up to $500,000, with a declining sliding scale for larger balances. The fee is assessed to the fund monthly. In addition to services provided for administering the donor advised funds, the fee helps to support many important programs including the Bushman Community Endowment Program, the Book of Life, the B'nai Tzedek and J-LEAD programs.

6. Who receives the investment earnings?
Virtually all donor advised funds are invested in one of the Foundation's investment pools. Earnings from these pools are credited to your donor advised fund, giving you more to give away to the community.

7. Which charities may receive grants from the fund?
You may recommend grants to any U.S. qualified tax-exempt organization, or qualified religious institution, in good standing with the Internal Revenue Service.

8. What is the minimum amount that I can recommend as a grant?
The minimum amount is $100.

9. Are there any limitations on the number of grants from the fund?
You may recommend as many grants as you wish throughout the year. There are no limitations.

10. How often are grants processed?
Grant recommendations are due by 5:00 pm on Wednesdays with checks to organizations mailed by Friday of the same week.

11. What types of payments are not eligible for grants from the fund?
The Foundation cannot honor the following recommendations from a donor advised fund:

• Legally Binding Pledges: By law, the Foundation cannot honor legally binding pledges that you have made to an organization since this is considered a personal obligation. The Foundation can honor solicitation requests.

• Tuition: No form of tuition, or the enrollment fees for extracurricular activities, can be paid from the fund.

• Non-deductible Portion of Membership of Tickets: The Foundation can only distribute the charitable portion of memberships and tickets to events from your fund. We will gladly include your personal check for the non-deductible portion with our check and letter sent to the organization.

• Grant Intended for the Benefit of One Named Individual: The Foundation cannot honor recommendations for grants that will benefit one named individual. Grants can be designated for funds being raised by a particular individual for an event.

12. How do I recommend a grant?

• Through the Donor Central online fund portal

• By faxing a grant recommendation form to our office

• By e-mailing a donor services staff member

• By phoning a donor services staff member

13. How can I view fund activity?
You may view fund activity any time on the secure Donor Central online fund portal. You may also call our office at any time for updated information.

14. Will I receive statements?
You will receive quarterly fund statements. Statements are available within three weeks following the end of the quarter and are available online or by U.S. mail, whichever you choose.

Donor Advised Fund Basic form (Adobe PDF)