Donor-Advised Funds Clause Samples
The Donor-Advised Funds clause outlines the terms under which contributions are made to a charitable fund where the donor retains advisory privileges over the distribution of those funds. Typically, this clause specifies how donors can recommend grants to specific charities, the process for submitting recommendations, and any limitations or requirements imposed by the fund administrator. Its core function is to provide a structured mechanism for donors to influence charitable giving while ensuring compliance with legal and organizational guidelines.
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Donor-Advised Funds. (continued) Successor Advisor Information for Individual Donors Successor Advisor 1 Successor Advisor 2
Donor-Advised Funds. Administrative fee
Donor-Advised Funds. As a community foundation, TSDF may establish for its donors a “donor advised fund,” which is separately identified by reference to the donor or donors. The fund is owned and controlled by TSDF and the donor or persons appointed by the donor have the privilege of providing advice with respect to the fund’s investments or distributions. TSDF has final authority over the distribution of all grants from its donor advised funds, and reserves the right to decline or modify a grant recommendation that is not consistent with these policies or TSDF’s charitable purposes. Gifts to a donor advised fund are irrevocable.
Donor-Advised Funds. Today, donor-advised funds (DAFs) are one of the fastest-growing areas of charitable gifting and are subject to the requirements under sections 4966 and 4967 of the Code. DAFs provide donors with the flexibility of gifting with an immediate tax advantage while deferring grant distributions to selected charities over time. The following are CCF-LA’s procedures for administering DAFs:
a. Permanent and Nonpermanent DAFs. Our clients have the option of a permanent DAF, which functions like an endowment, preserving the corpus with spending guidelines to make grants in perpetuity to the intention for which the fund was established, and a nonpermanent DAF, which is designed much like a charitable-giving checkbook to fund the near-term grants intended.
Donor-Advised Funds. A Donor-Advised Fund is a separate fund or account, usually established by a single donor or family and often bearing the donor’s name. WCCF owns and manages the assets contributed by the donor, and exercises control over distributions from the Donor- Advised Fund, but the donor may retain advisory privileges, or appoint advisors with advisory privileges, to make recommendations with respect to distributions. See Rules for Advisors in the attached Terms & Conditions. Donor-Advised Funds are appropriate for donors who want to participate actively in grant- making, or to create a vehicle for family philanthropy by appointing children and grandchildren as fund advisors. Donor-Advised Funds provide an efficient alternative to the complexities of establishing and operating private foundations. WCCF may assist donors and fund advisors in identifying possible grant recipients, verifying the charitable status and mission of possible recipients, and monitoring the use of grants by those organizations. Distributions from Donor-Advised Funds will be made to qualified 501c3 organizations or other charitable organizations and may not be made to an organization for the benefit of a specified individual. Distributions may not be made to satisfy a pledge or other legal obligation of a donor, advisor, or related party. Donors, advisors, and related parties may not receive any tangible benefits, goods, or services. Distributions may not be made to provide grants, loans, compensation or similar payment to donors, advisors or related parties. All distributions from Donor-Advised Funds must comply with WCCF’s operating procedures for Donor-Advised Funds. WCCF administers all Donor-Advised Funds in compliance with the requirements of the Internal Revenue Service. WCCF’s Board maintains full authority and control regarding Donor-Advised Fund assets and grant distributions.
Donor-Advised Funds. Donors establish advised funds when they wish to actively participate in the grant activity of the fund. Donors of advised funds may offer recommendations to the Foundation regarding the recipients and amounts of grants from the fund. Donors may name children or other designees to succeed them as advisors. Advised funds provide the maximum tax benefits while ensuring donor involvement over generations. They are an excellent alternative to operating a Private or Family Foundation. Upon the death of the last designated successor advisor, an Advised fund becomes a Discretionary fund or Field of Interest fund within the Foundation, with the annual grant allocations determined thereafter by the Board of Directors.