Questions About Donor-Advised Funds

 

  • Why should I create a Donor-Advised Fund at Rose Community Foundation?

    • With more than two decades of community knowledge, relationships and experience in the practice of philanthropy, Rose Community Foundation offers donors the support, services and access only a community foundation can offer. And, unlike a donor-advised fund at a commercial institution, donors know that even the fees we charge are in service to the community. Donor-advised funds provide flexibility, streamlined accounting, the highest tax deduction allowable by law and an efficient vehicle to support the nonprofits and causes you care about. For most donors, a donor-advised fund is a more cost-effective philanthropic vehicle than establishing a private foundation.
  • Are there restrictions on the types of grants I can make from my Donor-Advised Fund?

    • Donor-advised fund grants must be at least $250 and must be paid to 501(c)3 nonprofits or public charities as defined by the IRS. Donors may not receive event tickets or any other benefits in return for their grants. Likewise, donor-advised fund grants may not be used to pay pledges.
  • What is the fund minimum and what fees do you charge?

    • The minimum establishing gift for a donor-advised fund is $25,000. The Foundation charges a 1% fee on fund assets under $1 million and .5% on fund assets of $1 million and above.
  • What services are available to me as a Donor-Advised Fund holder?

    • Services available to Donor-Advised Fund holders:
      • Philanthropic Planning and Family Meeting Facilitation
        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.
      • Planned Giving
        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, transferring the money from your fund and sending the grant check with a letter. You have 24/7 access to our online grantmaking platform where you can view your giving history and fund balance and request distributions to nonprofits. 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

 

Questions About Designated Funds

 

  • What is the fund minimum and what fees do you charge?

    • The minimum establishing gift is $10,000 for a designated fund supporting a nonprofit organization or $50,000 for a designated fund supporting a cause. The Foundation charges a 1% fee on fund assets under $1 million and a .5% fee on fund assets of $1 million and above.
  • Who can open a Designated Fund?

    • Designated funds may be opened by individual donors or nonprofit organizations.

 

Questions About Planned Giving

 

  • How do I know my intentions will be honored?

    • Our staff places the highest priority on understanding, documenting and honoring donor intent. We have practices and policies in place to insure your intentions will be honored now and in the future.
  • What happens if I designate a gift to a nonprofit that ceases to exist?

    • Our bylaws include a statement of variance power, giving the Foundation the ability to identify a substitute organization fulfilling a charitable purpose that honors the donor’s original intent. Our knowledge of the community and extensive network of relationships with nonprofit organizations ensures your gift will serve the community as you intend it to, even if the original beneficiary organization you designate no longer exists.
  • Can I leave a planned gift without changing my will?

    • While it is always best to update and maintain a current will, there are a number of ways you may leave a planned gift, including through a life insurance policy or retirement plan. We are happy to discuss planned giving options with you and we recommend speaking with your accountant or attorney to explore options that are best suited to your goals.