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By making a contribution of cash or securities in the amount
of $5,000 or more, your client may establish a fund which
is held in an account in his or her name.
Any contributions made of cash and securities held for at
least one year are fully deductible and afforded the most
favorable tax treatment. In addition, any funds held in the
account grow tax-free.
Grants may be recommended from the fund fund to specific
Jewish or secular charities, freeing your client from the
pressure of making such decisions at the end of each year.
A single contribution of securities may be used to make tax-advantaged
contributions to many charities, avoiding the cumbersome requirement
of breaking a security position into many small units. The
minimum grant which may be recommended is $250.
Donors may nominate their children to make grants on their
behalf, now, or as your successor—enabling future generations
to carry on the tradition of charity that your client has
established.
A philanthropic fund can provide the advantages of a private
foundation while eliminating on-going legal and accounting
costs, as well as excise taxes on investment income. When
large contributions are made, the allowable tax deductions
are greater than those available when contributions are made
to a private foundation.
At a glance:
- May be established with cash or securities
- Can be created with a minimum gift of $5,000
- Allows donors to recommend grants to organizations
- Offers considerable tax advantages
- Less burdensome than operating a private foundation
More:
>> Donor-Advised
Philanthropic Fund Agreement form
>> Donor-Advised
Philanthropic Fund Policies and Procedures
>>
Foundation Investment Policies
>> Comparisons between Donor-Advised
Philanthropic Funds and private foundations
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