Donor Advised Funds
A Simple, Highly Personal Approach to Charitable Giving
Some donors want a simple way to optimize their giving; others are experiencing a one-time financial or tax event that calls for making a large charitable gift. You may want to make your philanthropy a family venture. Either way, establishing a named Donor-Advised Fund at the Community Foundation – adding to it any time, in any amount – may be the right choice for you, your family, or your business.
Donor Advised Funds allow you to make a gift to the Community Foundation and be actively involved in recommending grants. While they share many of the same charitable attributes, a donor advised fund is less expensive than a Private Foundation, with benefits that last for generations.
Here's how a donor advised fund works:
A few of the benefits you receive with a Community Foundation donor advised fund
- You receive expert service and flexibility so you can focus on the joy and excitement of making a difference.
- Your Community Foundation philanthropic advisor’s in-depth knowledge and Nevada connections work to help you make the most impact.
- Grant administration ensures the recognition you deserve or the absolute privacy you may desire.
- You receive maximum tax deductions at the time of your gift and eliminate capital gains tax on donated appreciated securities and property.
- You are invited to exclusive educational and networking events for our donors, fund advisors, and board.
- You can recommend grants online or by email whenever inspiration strikes - 24 hours a day.
- You may choose to name your fund for your family or a loved one. You also have the option to remain anonymous or assign a unique name reflecting your charitable mission and values.
We're glad to discuss your giving plans and help you learn more about how a donor-advised fund can benefit you and your community. Or, learn about the other types of funds offered by the Community Foundation of Northern Nevada
Assets we accept: Establish or add to a fund with any of the following
Cash (cash equivalents, including credit card donations)
Closely held, restricted or pre-IPO stock
Real estate, partial interest in real estate or promissory notes
Transfer of a private foundation
Tangible personal property
Royalties and distribution rights
Business Interests, including partnerships and interests in LLCs
We recommend you consult with your financial or legal advisor to identify the optimum asset for your personal situation. Please contact us at the Community Foundation prior to initiating your gift so we can be prepared to assist you the moment you are ready to open or add to your fund.
|Private Foundation||Donor Advised Fund|
|Legal Entity||Separate nonproﬁt entity||Fund|
|Tax Status||Private Foundation||Public Charity|
|Taxation of Investment Income||2 percent, annually||None|
|Payout Requirement||Grants must equal 5% of corpus annually||None|
|Deductibility of Gifts||20% AGI* for appreciated property, 30% AGI* for cash||30% AGI* for appreciated property, 50% AGI* for cash|
|Administration||Detailed annual IRS Filing||All record keeping and accounting carried out by Community Foundation|
|Grantmaking Expertise||Professional staff (if any)||The Community Foundation staff and program committee provide assistance to review requests and monitor grants|
|Control||Directors have complete control of distribution and responsibility for asset management||Donor Advisor(s) makes grant recommendations, which the Community Foundation administers|
|Cost||Annual operating costs, including legal and accounting fees, insurance, office space, staff, and misc. expenses||No cost to establish a fund; annual fee of 1% to 1.5% based on the average daily balance of fund|
|Donor Discretion||Must make available to the public the name and address of any substantial contributor||A donor to a Community Foundation fund may remain anonymous|
* Adjusted gross income
Service sets us apart
Philanthropic Advising Services are available when you open a Donor Advised Fund. Your philanthropic advisor is your personal connection at the Community Foundation. Available services include:
- The highest level of discretion and anonymity if you desire,
- Research into the causes and nonprofits that interest you,
- Site visits to nonprofits,
- Publicizing fund RFPs and collecting grant applications,
- Notifications of funding opportunities in your interest area,
- Development of a family, even intergenerational, philanthropic plan.
- When you have a fund you have a staff.
- Create a donor advised fund with a $25,000 minimum gift.
Donor Advised Fund Fee
Your fund will be charged an administrative fee ranging between .05% to 1.5% annually of the average daily balance of the fund. The administrative fees will be reduced or adjusted, should the Fund exceed $1 million or other thresholds per the Fee and Fund Policy. Fees are calculated on the daily average fund balance for the most recent month and paid monthly by automatic deduction from the Fund balance.
Investing your fund
Donor advised funds can be granted at any time. Choose an investment pool for your fund (long term, short term or cash) that fits your granting strategy. You can update when needed. Donors often increase their charitable giving because the fund grows, tax-free through sound investing.
Invest a portion of your fund’s assets in the Community Foundation impact investments. Leverage your philanthropic dollars to make investments in nonprofits and social enterprises such as Veterans Housing in Reno and Sparks. Learn More about the Community Foundation Impact Investing.
“I was born to a loving family who gave me a safe and beautiful home, sent me to good schools, provided me with many wonderful travel experiences, and gave me every opportunity to be successful. All I want is to help others realize their dreams, reach their potential, and have a chance for success like I had”