Donor Advised Fund Hero | WFMN
Donor Advised Fund

What is a Donor Advised Fund?

Donor advised funds are charitable accounts that allow you to make grant recommendations to your favorite nonprofit organizations. Contributions are tax-deductible in the year the donor transfers money into the donor advised funds. Grants can be recommended from the fund by the donor, or person designated by the donor, at any time.

How It Works

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Give

Make an irrevocable tax-deductible donation to open your donor advised fund.

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Grow

Endowed funds will be invested and may grow over time. Contribute to your fund anytime.

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Grant

Donor recommends grant to a qualified nonprofit of your choice.

Tax Benefits of a Donor Advised Fund

Contributions to a Donor Advised Fund are tax-deductible in the year they are made, and there are no legal costs to establish your fund. In addition, donations receive the most favorable tax treatment because the Women’s Foundation is a public charity. Giving long-term appreciated securities, privately held business interests, or other long-term, appreciated assets can generate larger tax benefits for you than giving cash. And, there is no required payout, so you can make thoughtful grants at your convenience.

Maximize tax benefits & More:
  • Build your philanthropic wealth over time.
  • Invest in causes with flexibility, according to a budget that feels comfortable to you.
  • Discover and engage with emerging nonprofits that connect with your passions.
  • Take advantage of the 2018 tax laws and maximize tax benefits by combining multiple years of donations into one large donation every five years.

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How We’re Different

When you choose the Women’s Foundation for your donor advised fund:

  • You can support the causes you care about, as well as our mission to invest in gender and racial equity.
  • We make it easy and flexible. A donor advised fund can simplify your giving. You can be assured the charities you select meet our high standards and thorough review, allowing you peace of mind.
  • Your investment impacts communities statewide. Endowed donor advised funds of $25,000 and more are commingled with the WFMN endowment to infuse additional capital into communities statewide through Program Related Investments (PRI). Since 2011, WFMN’s $600,000 in PRI have generated nearly $4 million in mission-aligned lending capital to organizations and women-owned businesses.

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Interested in Learning More?

If you have questions or are looking for more information, please contact:
Anna Seaton Huntington
Vice President of Advancement
anna@wfmn.org | 612.236.1837

Types of Donor Advised Funds Offered

Donor advisors may recommend grants at any time. We provide due diligence and gift verification, and transmit checks in a timely manner. Quarterly fund statements from the Women’s Foundation provide a record of all contributions and grantmaking from the fund. Grants must be a minimum of $500.

Unrestricted Fund

Donor or other designate advises the Foundation about grants they wish to make from the fund. *may be setup as annual funds or long-term funds

Designated Fund

Used by donors who want their fund to support specific charitable agencies. This fund is generally long-term (see below). *may be setup as annual funds or long-term funds

Field-of-Interest Funds

Used by donors who want to support an area of special interest, such as education, the arts, or a specific geographic area, without being locked into naming specific recipient organizations. *may be setup as annual funds or long-term funds

Current-Use Funds

These are non-permanent funds. Generally, grants are distributed over a shorter time period. The minimum initial contribution is $5,000.

Long-Term Funds

These funds are permanently endowed. The Women’s Foundation invests the capital in an endowment fund in accordance with its investment policy. Donors may choose the spending rule for the fund: income only, or income and principal. Endowed funds must maintain a minimum balance of $25,000. Additional contributions of any size can be made at any time to the fund. Others can make tax-deductible contributions to the fund to commemorate birthday, holiday, or memorial/honorary gifts.

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Donor Advised Fund Fees

Fees are payable on a monthly basis and based on the fund’s market value as of the previous month-end. The Administrative Fee is charged to all funds. The Investment Fee is charged to endowed funds only.

Fund Size Administrative Fee Investment Fee Total Fee
$5,000 – $999,999 (Minimum Fee $250) 1% 0.66% 1.66%
$1 – 2.4 Million 0.70% 0.66% 1.36%
2.5+ Million 0.35% 0.66% 1.01%

 

For more information or to open a fund, please contact:

Anna Seaton Huntington
Vice President of Advancement
anna@wfmn.org | 612.236.1837