Donor Advised Fund

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.

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.

Donors establishing a DAF are encouraged to make recommendations regarding distributions from the fund for specific charitable purposes or to one or more charitable organizations. However, all distributions from a DAF are subject to the PineBelt Foundation’s variance power and spending policy.

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.

  • 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