Donor Advised Funds

Invest in Your Community by Opening A Donor Advised Fund

Donor Advised Funds (DAFs) are a convenient and flexible tool for individuals, families, businesses, or groups who want to be personally involved in recommending grants made possible by their fund.

How a Donor Advised Fund Works
Donors retain the right to serve as advisors to the PineBelt Foundation board of directors in establishing grant allocations. The donor advised fund is a perfect vehicle for individuals who haven’t decided on a specific charity. They can set up a fund, get an immediate tax deduction for the gift (cash, stock, property), and postpone the decision regarding which nonprofit to give it to until they are ready.  A donor-advised fund can help you achieve your charitable goals. It can be established and funded currently. Or, you can name it as a charitable beneficiary of your will, charitable trust, gift annuity, retirement plan or insurance policy.

Gifting Advice
Just as the name implies, each year you can advise as to whom, how much and when to give from the fund. You may change the charities that benefit from your fund without the expense of changing wills, trust or legal documents. With a donor-advised fund, you can name successors to carry on your charitable goals. For example, you may name your children, grandchildren or other trusted advisors to carry on your legacy. This will allow you to pass your giving values on to future generations.

Note:  The PineBelt Foundation staff have the responsibility to ensure that all grants are for charitable purposes within the meaning of section 501(c)(3) of the IRS Code or that the grant will be used for a charitable purpose. 

Based on the 2006 Pension Protection Act of 2006 distributions from a Donor Advised Fund to an individual or to any organization that is not charitable are prohibited. 

Anonymity
If you choose, you can maintain anonymity. Your donor-advised fund is never subject to the public record. This means that your fund will not be solicited by charities except through your own activity.

Tax Advantages
Your donor-advised fund qualifies for the highest charitable income and estate tax deductions allowed by law, while bypassing capital gains tax on gifts of appreciated assets to the fund.

Economic and Administrative Efficiency
Through economies of scale, your administrative costs will be minimized. Additionally, you won’t need to comply with required annual tax auditing and reporting. As a part of the PineBelt Community Foundation, these requirements will be performed for you. 

 About Donor Advised Funds:

  • Minimum of $1,000 to start a Donor Advised Endowment Fund and grow to $10,000 in 10 years
  • Donor(s) recommend timing, amounts and recipients of gifts from the fund
  • Can serve as donor’s “Charitable Checkbook” whereby donors recommend charitable grants and the PineBelt Foundation does all the administration and paperwork of charitable giving
  • 1% fee to the PineBelt Community Foundation for administration with a annual minimum fee of $100 (for a DAF endowment) or $250 (for a DAF spenddown)
  • All gifts acknowledged to the donor(s)
  • No mandatory spending (i.e. 5% regulation for private foundations)
  • Donors can advise all timing and amounts of gifts with no limits or minimums

 

For more information please contact your Professional Advisor or Theresa Erickson, Executive Director at contact@PineBeltFoundation.org or call 601.583.6180