Donor Advised Funds
A Donor Advised Fund is a separately identified fund that is maintained at the Women’s Foundation of Minnesota. You can open your own donor advised fund with a simple written agreement that gives you — and other family members, too, if you choose — the right to recommend grants be from your fund to nonprofit organizations of your choice.
How It Works
Once you have established a Donor Advised Fund at the Women’s Foundation, you can:
- Make contributions to your fund at any time.
- Recommend that various amounts be distributed to nonprofits of your choosing.
- Receive an income tax charitable deduction for gifts made to your donor advised fund.
- Suggest others make gifts to your fund for your birthday or other special celebrations.
- Name a beneficiary advisor to extend philanthropy to the next generation.
FAST FACT >>
Though similar to a private foundation, a Donor Advised Fund is often preferred by donors because of its simplicity. There are no setup fees or excise taxes, nor are there any annual filing and compliance requirements. Plus, donor advised funds received more favorable tax treatment than private foundations.
Your Major Benefits
- Convenience and Timing: You can take a tax deduction now – when you make a gift to the fund – without immediately having to choose the charities you want to support.
- Simplicity: You can support a number of charitable organizations and centralize your giving without having to retain records for separate contributions.
- Expertise: You can take advantage of the staff’s expertise to research which programs you want to support.
- Family philanthropy: Families can build a tradition of giving and teach their children or favorite nieces and nephews the value of philanthropy by involving them in the decisions about which grants to recommend. Plus, you can name a next-generation of advisers to carry forward a true legacy of giving.
>> You can start a Donor Advised Fund for as little as $5,000. Please contact Amanda Storm Schuster, vice president of advancement, at 612-236-1830, for more information on Donor Advised Funds.