Donor-advised funds are quickly becoming the most popular way to invest social capital. These funds are a great option for individuals and families who want to be involved in philanthropy but who do not want the cost, administrative and organizational burden of a private foundation.
Your Donor-advised fund can be at the Community Foundation of Utah, one of more than 700 such public foundations established by many separate donors for the long-term benefit of the residents of a defined geographic area.
Tax Benefits
Donor-advised funds provide more-generous tax breaks than family foundations and none of the legal, accounting and administrative hassles. For example, you can deduct the value of cash gifts up to half of your adjusted gross income, compared with a deduction of up to 30% for cash gifts to charities from a private foundation. Gifts of stock and property also receive more favorable tax treatment: you can deduct the value of such gifts to DAFs up to 30% of your AGI, compared with up to 20% with a private foundation. Donor-advised fund also avoid an excise tax on net investment income levied annually on foundations.
Establishing a fund is easy
Establishing your Fund can be accomplished in less time than it takes to open a bank account. The Foundation takes care of all administrative and grantmaking activities, eliminating the need for you to set up a separate institution, hire legal and accounting expertise, formulate policies, file forms and monitor the status of grant recipients. We help you accomplish your charitable goals while saving you precious time and money.
Low cost
There has been a lot in the new lately about the ‘billionaire challenge’, led by Warren Buffet and Bill gates. Donor Advised Funds are also a great option for the rest of us! Funds at the Community Foundation of Utah can be established with as little as $5,000. You can name your fund as you wish, allowing for as much or little recognition as you and your family desire. The 1% administrative fee charged by the foundation stays in Utah to support our state’s nonprofit organizations.
Personal service
The Community Foundation of Utah offers a variety of services and support to make giving even more satisfying.
- Their staff works directly with you to make sure you always have the support and answers you need. If you need help finding a charity that meets your objectives, the foundation does the research. Their expertise can lead you to effective, innovative organizations and strategies you wish to support.
- You can target your gift to a specific project at a charity, or allow the agency to use the funds for operating support.
- The foundation is leading research into the needs of Utah's nonprofits, and can help you identify where your funds will do the most good in these challenging times.
- The foundation conducts due diligence on all grantees so you can be assured that your charitable donations are going to solid organizations. They also take care of all the necessary paperwork.
- Each quarter you'll receive a statement on your fund -- where you dollars have been invested, how your fund has grown, and the assets to continue your charitable work.
- The foundation places all funds into one investment pool, leveraging your fund’s investment power with others. Their Investment Committee is a volunteer group of some of the Utah’s most respected and experienced fund investors, who are dedicated to growing the assets of our community.
Giving is easy and straightforward with no surprises in the fine print. You can learn more about The Community Foundation of Utah at their web site www.utahcf.org, or by calling Fraser Nelson at (801) 559-3005.
