Who can make grant recommendations from my fund?
The individual(s) who signed the original fund agreement is/are the only one(s) authorized to make grant recommendations unless we were informed otherwise in writing by the donor(s).
How do I recommend a grant?
We ask our donor-advised fund holders to use our online donor service, DonorCentral, to submit recommendations. You may also submit grant recommendations in writing by email, mail or fax. The grant recommendation should include the name of the nonprofit organization you would like to receive a grant, the amount of the grant and the purpose (operating support or support for a specific project).
When may I recommend grants from my fund?
You may begin making grants from your fund with a minimum balance of $25,000 for a donor-advised fund and $10,000 for a designated fund. Grant requests are accepted at any time and usually are processed in five to seven business days.
How often may I recommend grants from the fund?
You may recommend grants as long as the fund balance does not fall below $5,000.
Is there a minimum/maximum amount for a grant?
The minimum grant amount you may recommend is $250. There is no maximum grant amount. Please note that large grants may require additional time to process.
Which types of organizations may I recommend for grants?
You may recommend nonprofit public charities, schools, religious institutions and government programs. You also can direct grants from your donor-advised fund to other Rose Community Foundation funds, such as:
- Jewish Women’s Fund of Colorado
- Latino Community Foundation of Colorado
- Roots & Branches Foundation
- Rose Youth Foundation Endowment
- Rose Women’s Organization
Are there any restrictions on grantmaking?
To safeguard the deductibility of your gift – and our charitable status – we comply with IRS regulations governing donor-advised funds. Please help us by keeping the following guidelines in mind when you recommend grants from your donor-advised fund.
- Pledges – We can’t make a grant from a donor-advised fund to fulfill a personal pledge or other binding commitment you’ve made. If you want to respond favorably to a charitable solicitation, let us know and we can tell the solicitor that you intend to recommend a grant from your fund.
- Grants to Individuals – No grants to individuals may be made from a donor-advised fund, nor can we approve a grant from a donor-advised fund to an organization that will benefit specific individuals.
- Organizations that are not public charities – We do not make grants to organizations that are not exempt under Section 501(c)(3) of the Internal Revenue Code. Although we do not make grants to foreign organizations, we do make grants to American nonprofits that support charitable activities abroad, including “Friends of…” nonprofits.
- Tickets or Memberships – We recommend caution when requesting to purchase tickets or memberships with a donor-advised fund. The IRS does not permit us to make a grant from a donor-advised fund that will result in a tangible benefit to you, a member of your family, or a “disqualified person.” This includes events, dinners or memberships that provide benefits and services. You can make a grant from your fund in lieu of tickets.
What types of grants may I recommend?
A donor-advised fund allows you to choose how you can have an impact through your giving. Some common types of grants made to nonprofit organizations are:
- Operating or General Support – Provides support for the day-to-day costs of running an organization
- Unrestricted – Allows the organization to use the funds where it is most needed
- Project or Program – Provides support to a specific activity
- Capital or Capital Campaign – Provides support for the purchase of property, the construction of a facility, remodeling/expansion of an existing facility or purchase of equipment
- Endowment – Provides support to an organization’s permanent fund that generates an annual source of income for operating or project expenses
- Seed – Helps jump-start a new organization or a new project, or launch a capital campaign
- Challenge or Matching – Helps a nonprofit organization leverage additional dollars through a fundraising campaign
May I recommend grants to organizations outside of the Greater Denver community?
May I select the investment mix for my fund?
Yes. The fund is commingled and invested with Rose Community Foundation’s assets. We have a range of investment styles that allow you to recommend a mix of equities, fixed income and money-market investments to match your philanthropic plan.
What is the Foundation’s fee structure for administering my fund?
Donor-advised funds are assessed an administrative fee based on the following tiered structure:
Fund assets of less than $1 million: 1.00%
Fund assets of $1 million or more: 0.50%
The fee includes all back-office services provided by our staff. The investment management fees are borne directly by each fund and currently average 65 basis points. The fee is calculated and charged pro-rata at the beginning of each month.
Any fund maintaining a balance of less than $25,000 for more than one year will be assessed a minimum annual fee of $250.
What services are available to me as a donor-advised fund holder?
We provide the following services, tailored to your specific interests/needs:
Many families want to instill values in their children and grandchildren about the importance of charitable giving. We are happy to work with you and your family to develop a plan or strategy to help you meet your philanthropic goals.
We offer comprehensive estate planning services. We will work with you and your financial advisors to reduce taxes and increase income, all the while helping you to build a permanent legacy.
Grantmaking Ease and Information
Once you submit a grant recommendation, we take care of the details: checking the nonprofit status of the organization, transfering the money from your fund and sending the grant check with a transmittal letter. We can also provide you with information about local nonprofit organizations, including specific groups or those working in a particular area of interest.
Record-Keeping and Reporting
- Acknowledgment/necessary tax documentation of all gifts to the fund
- Mailing all recommended and approved grants to the requested organizations, listing you (or your fund name, if you wish to remain anonymous) as the person who recommended the grant
- Providing you with quarterly and year-end statements listing gifts to the fund, grants from the fund, fees and investment results
- Providing you with IRS Form 8282 for your gifts of non-publicly traded securities
May I spend the principal from my fund?
Yes. There are no restrictions on the amount of money you may request to be distributed from your fund. However, if your fund balance falls below $5,000, or if there has been no activity in your fund for a period of 24 months, we will work with you to develop a plan for the future of the fund.
What happens to my fund after my lifetime?
When a fund is established, the donor(s) may designate a person or persons (“successors”) other than or in addition to the donor(s) to have the right to exercise the privilege of making charitable distribution recommendations. We allow and encourage up to two (2) generations of successor advisors for any fund. The designation of successors to the original donor will be recognized if it furthers ongoing participation, support and involvement by such successors. Where successors in addition to the original donors may make recommendations, we may require such successors to designate a spokesperson for all in submitting recommendations to us.