Donor Advised Fund.
What is a donor-advised fund? A donor advised fund is an easy, tax-efficient way to give to charity. Donor-advised funds, or DAF, allows donors to make a charitable donation, receive a tax deduction immediately, and then recommend grants from the fund over time. As a donor, you can contribute to the DAF as often as you’d like, and then recommend grants to charities like Giving Center. Donors contribute assets, those assets grow, and Giving Center benefits. To begin a donor-advised fund, you, the donor, makes a contribution of personal assets, such as cash, stock, real estate, retirement account assets, cryptocurrency, and more. Once your charitable contribution is made, you immediately receive the maximum tax deduction the IRS allows. You name your donor-advised fund account, advisors, or charitable beneficiaries. Your charitable contribution is placed into the DAF where it can be invested and grow tax-free. You can then recommend grants from your DAF to IRS qualified charities, such as Giving Center.
IRS qualified charities must meet certain requirements in order to be considered a 501(c)3 non profit. Giving Center is an IRS approved 501(c)3 not for profit charity located in the United States. Giving Center, with a network of individuals and organizations serves to help a wide range of causes. Our focus is on education and the improvements of the lives of those less fortunate. It is only with our donor’s assistance, we are able to help social service agencies, schools, shelters, Veterans, students, those with financial challenges, and many more.
Can anyone open a donor-advised fund account?
Yes! Companies, foundations, families, individuals, and other entities can open a donor-advised fund account.
How quickly can a donor-advised fund account be created?
With Giving Center, it takes less than a day. Your account is established once you complete a Donor Application, after successful completion you can begin to make contributions to your DAF.
How much is needed to open a donor-advised fund account?
To begin a donor-advised fund account with Giving Center, a contribution of $10,000 or more is needed. After your DAF is established, subsequent contributions in any amount can be made. If contributing using a credit card, the contribution minimum is $1,000.
Am I able to name my donor-advised fund after someone other than me?
Yes. You are able to use any name for your donor-advised fund account, including the term “Foundation”. While donors often choose a name they are associated with, donors can also choose a name that signifies the main purpose of the account. Donors can also choose to have a name that allows them to remain anonymous. Examples include: “The Jones Charitable Foundation” or “Underprivileged Student Fund”.
Is there a minimum account balance I must maintain?
There is no minimum balance that is required for a Giving Center DAF account.
Is Giving Center a nonprofit organization?
Yes. Giving Center is a tax-exempt nonprofit organization and public charity under Internal Revenue Code Section 501(c)(3).
Will my company match my gift that I recommend out of my DAF?
Check with your employer to see if they offer a gift matching program and what their policies are.
Giving Center accepts a wide range of financial assets including illiquid assets. From cash, checks, electronic fund transfers, to non-publicly traded assets like private business interests. Your portfolio can be turned into a life-changing gift.
Donate appreciated assets:
Stocks & other securities:
Publicly traded stocks
Mutual fund shares
Privately held business interests:
Hedge fund interests
Private company C-corp stock
Private company S-corp stock
Other non-publicly traded assets:
Oil and Gas royalty interests
Electronic Funds Transfer
Cash position from a brokerage account
Our Philanthropic Services Team is here to help our donors maximize their charitable impact on the world. Whether you are an experienced donor, or just starting out on your philanthropic journey, we are here to assist you. Giving Center understands your charitable vision and provides our donors with the support they need.
What are some ways our Philanthropic Services Team help you?
We can help our donors prepare an effective and well-defined giving strategy.
Our team can help identify your humanitarian interests and create a program to focus your giving.
If you have a specific issue or geographic area you want to focus resources on, we provide in-depth comprehensive research on how to best attain your goals.
Work with charitable grantees.
We assist in evaluating potential grantees and provide the tools needed to measure outcomes.
We provide advice in making grants that help local communities or charitable organizations internationally.
We help our grantees achieve their vision, in doing so, we procure special or specific grant agreements that stipulate reporting requirements, naming rights, or any other terms that matter to our donors.
Engage the next generation.
We provide the education and basis for the next generation to create a lasting giving legacy.
We offer the ability to name charitable beneficiaries, successors, and advisors of your donor-advised fund.
Unite with other like-minded donors.
Giving Center provides you with the education and information you need to allow you to pool resources with other donors to increase support for a specific cause.
We help strengthen your partnerships and collaborations with other donors with our expert guidance.
Giving Center teams up with other networks and organizations with meticulous knowledge in specific geographies or demographics. If you are interested in learning more about our services and how recommended grants can be customized to meet your needs, please contact our Philanthropic Services Team at (888)228-7320 today.
Donor-advised funds (DAFs) have become popular over the years because of how versatile it is. A DAF gives donors the freedom to give when, what, how, and where is most advantageous to them.
Giving Center has streamlined its charitable solutions to make giving with donor-advised funds as seamless and as efficient as possible. DAFs offer various tax benefits over other types of giving. We can be the vessel to other financial and estate planning tools, including charitable lead trusts, bequests, and charitable remainder trusts. So, what are common uses for DAFs?
Donate Now. Recommend a Grant later.
Donor-advised funds allow donors to make a contribution now, receive an immediate tax deduction, and then make grants to their favorite charities later. A DAF gives donors time to really tailor a grant that best fits their philanthropic vision. Donors can still make grants immediately after starting their donor-advised fund, while others take time to work with our Philanthropic Strategy Team to develop a donation strategy.
Create Yearly or Multi-Year Commitments to Your Favorite Charities.
Donor-advised funds allows our donors to support their favorite 501(c)3 once, or for years to come. Grants can be made anonymously, be recurring, or have a specialized grant agreement to help donors reach their charitable donation goals.
Illiquid Assets Can be Converted into Capital.
Donor-advised funds accept a wide variety of charitable contributions, including illiquid assets. What is an illiquid asset? Real estate, artwork, collections, and other personal property are all considered illiquid. Giving Center allows donors to look beyond their stock portfolios and view their total wealth as a potential charitable donation to charity.
Create a Legacy for the Next Generation.
Donor-advised funds can involve family members, advisors, and successors. A DAF not only encourages charitable giving for generations to come but can teach important skills such as management and grant recommendations. If for any reason a donor can no longer manage the account, responsibility can be transferred to loved ones. Donors can also leave bequests of either a balance or percentage to be dispersed over time, thus leaving a charitable legacy that lasts for generations to come.
Giving Center accepts a wide range of assets including:
Privately held stock
IRA, 401(k), or other retirement account assets
Mutual Fund Shares
Restricted and controlled stock
Life Insurance proceeds or from a full-paid policy
Bequests and Testamentary Gifts
Publicly traded securities
Tangible personal property
Giving Center encourages you to consult with your attorney or tax advisor before making a charitable contribution of your assets.
When would my donation be considered a charitable contribution?
Once the asset is out of the donor’s control, the charitable contribution becomes a donation. This is determined by the type of asset you donate, and when/how it was transferred to your donor-advised fund account.
Can the assets of my IRA be contributed to my donor-advised fund?
You can choose to name your donor-advised fund as the beneficiary of all or part of an IRA. In order to determine how contributing assets from your IRA may influence your tax liability please consult your tax advisor or attorney.
What is the most common or best type of asset to contribute to my donor-advised fund?
The most cost-effective contribution, as well as the most common asset to donate is appreciated securities that have been in ownership for over a year. You can avoid capital gains tax on the securities, and you can deduct the total fair market value of the contribution from your federal income taxes, and up to 30% of your AGI.
Cash donations are another common asset to donate. Whether you’d like to donate by cash, check, electronic transfer, or wire transfer, cash donations can allow donors to deduct up to 60% of their adjusted gross income.
Will I get a receipt for my contribution to my donor-advised fund?
Yes. Giving Center will provide you with a written confirmation of your contribution to your donor-advised fund. This confirmation serves as a receipt for tax purposes. Your contribution is immediately tax deductible. However, grants you recommend from your donor-advised account cannot be used to take a deduction. The income accrued in your DAF account from an investment is not eligible for deduction.
With your contribution to a donor-advised fund, your charitable dollars can be invested prior to being granted out. The DAF balance is capable of growing over time, and in turn, make more money available for grantmaking. While you will receive an immediate tax deduction for your contribution, you will not be taxed on any growth.
Reduce your Tax Burden
Your DAF can reduce tax burdens after an unexpected profit or gain, also known as windfall. Unexpected profits or gains can be a result of receiving an inheritance, selling a business, or receiving strong market returns. Your immediate tax deduction allows you to reduce your tax liability. DAFs allow its donors to recommend grants over time, so you can pre-fund years of giving from a single high-income event.
Reduce or Eliminate Capital Gains When You Contribute Appreciated Assets
The most common way to fund a DAF is a direct donation of publicly traded securities (or other illiquid assets). This method is tax-efficient because securities that have been held for more than a year can be donated at their fair market value. It is not subject to capital gains tax. As an example: if a donor were to convert assets into cash or cash equivalents and later donate the earnings to their DAF, the entire amount would be reduced by capital gains tax. In simple terms, less money available for charities. Our donors will receive an immediate tax deduction (of up to 30% of adjusted gross income) for gifts of mutual funds, real estate, appreciated securities and other assets, and can utilize a five-year carry-forward deduction on donations that exceed adjusted gross income limits.
Are there any limitations on charitable deductions?
According to the Internal Revenue Code, deductions for charitable donations are subject to percentage limitations. As a donor, you can deduct a stated percentage of your AGI (Adjusted Gross Income) in the year you take the deduction. Keep in mind, contributions made in excess of the limitations may be carried forward for an additional 5 years.
Giving Center is a public charity, so percentage limitations are the most favorable charitable deductions available. Donor’s cash contributions allow deductions up to 60% of your adjusted gross income. While for example, long-term capital gain property is limited to 30% of AGI. Be sure to contact your tax advisor or attorney to evaluate your tax deductibility limits.
What happens if there is income accrued in my donor-advised fund? Can that be considered an additional charitable contribution?
No. Only contributions to your Giving Center donor-advised fund are tax-deductible. When funds are invested, the growth inside the account is not eligible for an additional deduction.
Is there a difference in my tax deductions depending on the type of asset I contribute?
Yes, there are some differences. Examples below are general guidelines, for further information please contact your tax advisor.
Check/Wire/Cash: Your charitable deduction is the amount of your cash contribution.
Publicly-traded securities: After owning your securities for more than a single year, the value of your gift is the fair market value of those securities donated determined by an average of high and low on the date you contribute them.
Securities that are not publicly traded: Similar to publicly traded securities, after one year of ownership, your gift value is the fair market value of those securities donated. As long as they are determined by you (as the donor) in a reasonable manner on the date your donated them. There are instances in which the IRS may require you to obtain an independent appraisal.
Real Estate: The gift value is the fair market value of the real estate donated. It must be determined by you in a reasonable manner on the date you contribute the real estate. In most instances, a qualified independent appraisal can be useful.
Do I file my contribution receipt with my taxes at the end of the year?
No. The IRS requires that donors have a copy of the contribution receipt in their possession at the time you file your taxes.
Is there a capital gains tax for gifts of appreciated securities?
Because Giving Center is a charity, we don’t pay a capital gains tax when there is a sale of gifted securities. In turn, you don’t pay capital gains tax on securities you contribute to your DAF.
How many grants can I recommend in a year?
There are no limits to the number of grants you can recommend each year.
Are there fees charged for each grant recommended?
While Giving Center does not charge a fee for each grant recommended, there are fees for international and non-501(c)3 grants.
Will my company match a grant I recommend from my donor-advised fund?
Some companies may have a program to match charitable donations, please check the policies of your company.
Can I recommend a grant to any charity or nonprofit organization?
Giving Center can make grants to charities that are tax-exempt under the Internal Revenue Code 501(c)3 and public charities under Internal Revenue Code 509(a). Giving Center cannot make grants to private non-operating foundations, political candidates or parties, tuition, dues, membership fees, or any goods purchased at a charitable auction. Recommended grants cannot be used for any personal benefit.
Can I make a grant recommendation from my donor-advised fund to attend a charity event?
No. A common reason for denying a grant is the donor’s desire to use the grant for event tickets, galas, and charitable events. Many galas and charitable events provide the attendees with benefits such as door prizes/gifts, food, and drinks. The DAF grant cannot be used to pay any portion of the ticket if the full cost is not tax-deductible.
What is the minimum grant amount?
The Board of Directors have set a minimum grant amount of $100 on grants to maintain cost-effectiveness and encourage giving.
How long do grants take to process?
Grant recommendations typically take 2-10 business days to be processed and are subjected to approval by Giving Center’s Board of Directors. You may also select an option “Where it is needed most”, this allows Giving Center to utilize your charitable contribution flexibly where we see fit.
What does the grant review process entail?
Giving Center’s Board of Directors carefully conducts its reviews of each grant recommendation to ensure the funds are used for proper charitable purposes and that the grants do not confer impermissible benefits on donors or on any other person. Giving Center reserves the right to perform due diligence and to decline a recommended grant to a charitable organization. Giving Center’s review of grants takes into consideration information from a variety of sources, including but not limited to IRS databases, public records, news reports and information provided by donors, grantees, and others. As an example: Giving Center does not make grants if the grant contributes to illegal or noncharitable activity (terrorism, money laundering, fraud, hate crimes, etc.), or if a grant may otherwise be used for improper purposes.
Giving Center is a cause-neutral charity. Recommended grants can support a wide range of causes including but not limited to specific charitable activities, specific fields of interest, specific geographical criteria, or to a particular demographic criteria. Giving Center’s Board of Directors are committed to ensuring all grants are made for charitable purposes, and as such, committed to regularly review our grantmaking policies and procedures.
Can I support a pledge with my donor-advised fund?
Grants can be made in support of non-legally binding pledges. Recommended grants can be made in response to a charity’s request for commitment. Be sure to confirm your pledge is not considered legally binding beforehand.
Can grants be made in memory or in honor of someone else?
Yes. You may make a grant recommendation ‘In memory of’ or ‘In honor of’ when submitting your grant. You will also be able to add your loved one’s information.
Can I recommend a grant to support tuition payment or for a scholarship?
No. A recommended grant cannot be made for tuition payment of a specific individual(s) or for a scholarship where the donor or related parties have sole discretion over the recipients. Recommended grants for school tuition and other fees such as enrollment fees and deposits are not allowed, including fundraising obligations set by the institution that will be billed as tuition if not met. What is allowed, is a grant made fore the purpose of supporting a scholarship program that is administered or overseen by a qualified public charity as long as it doesn’t satisfy a financial commitment of any individual or entity.
Can I support a political party with my donor-advised fund?
No. A grant cannot be made if it’s used to support political campaign activities, or for lobbying for political donations.
Can I recommend a grant to give to foreign charities?
You can recommend a grant to an American charity who’s work has taken them overseas. You can also recommend a grant to an American intermediary charity, who will, in turn, make a grant to your preferred charity.
How are funds distributed?
We send grants to charities via check or Electronic Funds Transfer “EFT”.
For checks: Checks can be sent to charities who have told us the addresses where they would like us to send both letters with grant details and the check itself. We always contact the charity to confirm the correct address prior to sending a check.
For EFT: To be more efficient, charities ay ask for funds to be sent electronically. An address is not needed when charities enroll in the EFT program with Giving Center. If a grant is sent via EFT, the receiving party will receive an email with the information.
Can I have the grant check sent to me so I can be the person to present it to the organization?
No, Giving Center sends all grant funds directly to the charity recipient.
Will a checkbook associated with my donor-advised fund be given to me?
No. Giving Center handles any and all check writing, EFTs, and grant processing. All recommended grants are subject to review and approval by Giving Center’s Board of Directors. Therefore, checkbooks may not be provided to donors.
What are my acknowledgment options?
There are 3 different options available to our donors.
1.Donor’s name, address, and donor-advised fund’s name.
2.Donor-advised fund’s name.
It is important to know, if the first option is chosen, some organizations will take your name from the grant letter and add you to their mailing lists. To avoid solicitation, choose the latter options when recommending a grant.
Are my children allowed to be involved with the donor-advised fund account?
Yes. As a donor, you’re allowed to name loved ones as advisors or successors to your account. Once they are 18 years old, they can legally assume those roles.
Can I have multiple successors or advisors?
Yes. Your account assets will be split into new separate accounts for each advisor or successor designated to your account. Advisors and successors will have advisory roles on the new accounts created from your donor-advised account assets.
Are there any fees charged to my donor-advised fund account?
Giving Center charges charitable administration fees that include fees associated with grantmaking, recordkeeping, tax filing, insurance, annual audits, and various other operating expenses.
If there are no successors, what happens to my donor advised fund?
If you choose not to designate a successor, you can designate a qualified charitable organization as account beneficiaries. If you choose not to have a successor or designate a charitable organization as a beneficiary, Giving Center can annually distribute 5% of your donor-advised fund account to nonprofit organizations that have previously received grants. In the event you have not recommended grants in the past, your DAFs account balance will be transferred to Giving Center’s Giving Fund.
What can Giving Center do to help me develop a charitable plan?
Giving Center can help create a charitable donation plan for our donors. Giving Center offers guidance in charitable strategies to help meet our donors’ targets. Do you have a particular charitable goal you’d like to meet? Want to know what other assets you can contribute? You can speak with a member of our team anytime! Please call (888)228-7320.
Please download our Donor Advised application, complete the application and send by mail. Any questions please feel free to contact us anytime at 888-228-7320