Donor Advised Fund
A Personal Approach to Giving
Your clients can support one or more of the nonprofit organizations of their choice.
It’s easy to create and allows them to remain actively involved in recommending grants.
We make it easy for your clients to create and use a Donor Advised Fund. As your charitable giving partner, we handle the investment, administrative, regulatory and grantmaking details that are necessary in effective philanthropy. A Donor Advised Fund allows your clients to:
- Make contributions to their fund and recommend grants to qualifying charities.
- Let the fund grow until they are ready to recommend grants, without an obligation to make a minimum distribution (unlike private foundations, which are required to distribute 5% of the assets annually).
- Create a tradition of family giving by naming future generations as successor advisors.
- Continue their support in perpetuity if they choose to endow their fund.
- Receive an immediate tax deduction whenever they add assets, and pay no tax on the fund’s future earnings.
- Leave the necessary financial reporting to be done by Placer Community Foundation.
- Participate in community leadership by supporting PCF’s Community Needs Fund.
Top 10 Reasons To Use A Donor Advised Fund
Keep Track of Fewer Charitable Receipts
For any charitable contribution over $250, the IRS requires that you obtain – and retain – a receipt containing the right kind of language. With a donor advised fund, there’s no need for you to handle individual receipts to charities; you’ll receive one receipt from us for the contribution you make to your fund and that is sufficient for the IRS.
Avoid Capital Gains Taxes on Appreciated Securities
An appreciated security is simply a stock or bond that is worth more now than when you bought it. There are significant tax advantages to donating an appreciated security, but it can be complicated. With a donor advised fund at Placer Community Foundation, just have your broker follow our stock transfer instructions. We’ll sell the stock immediately, put the proceeds in your fund, and then you can recommend donations to various worthy causes whenever you choose.
Donations Continue to Grow
All endowed donor advised funds are added to PCF’s pool of assets. Our Finance & Investment Committee, with the help of consultants who specialize in community foundation and other endowments, uses a closely monitored comprehensive asset allocation model designed to maximize long-term growth while minimizing volatility. Current financial performance figures and other investment information are available to the public and on our website.
Fund Growth is Tax Free
As a 501(c)3 organization, Placer Community Foundation pays no income tax. All that growth in your donor advised fund is completely tax-free (not just tax-deferred like your 401k.)
Use the Fund to Make a Difference in Perpetuity
A donor advised fund offers various options upon your death. You can designate who should take over the responsibility of recommending future contributions or specify what types of charitable institutions and/or interests to fund in the future. We have been here for over 70 years, and we have built a reputation as a place you can trust that your charitable intent will be honored in perpetuity.
Ability to Distribute Funds Anonymously
If you would like your contributions to be given anonymously, we will set up your fund so that the recipient organization only sees Placer Community Foundation’s name on the check. You can decide to be anonymous or not on a case by case basis.
Flexibility of Contributions
Some years it makes more sense to contribute assets than others. With a donor advised fund, you can make contributions to your fund—or forego them—as you wish. Yet you can still recommend distributions out of the account even in years when little or no money goes in.
Availability of Advice and Assistance
Most people are not experts at determining what causes are worthy. We deal with nonprofit organizations every single day, and are happy to supply advice, guidance, assistance, support and help as requested. In addition, we work with donors and their advisors to maximize the satisfaction with the grants made from advised funds.
Easy to Get Started
Starting a donor advised fund, whether non-endowed or endowed, is simple. To start, just sign a fund agreement and send it with your money or appreciated securities. You can then send grant distribution recommendations by mail, fax or online form. To get started, call us 530.885.4920 or by email at info@placercf.org.
Low Fees
Donor advised funds are charged a low fee of 1.85% or less based on the fund’s balance. This fee schedule applies to Donor advised funds only. The fee ranges for other fund types will be determined on a case by case basis and is dependent upon the administrative work involved and is determined at the time the fund is established. This fee does not include fees charged by the financial advisor and/or investment manager.