WHAT IS A DONOR ADVISED FUND
Donor Advised Funds enable you, the donor, to have ongoing involvement in the use of your gift to the Community Foundation. Once you have established a Donor Advised Fund, you can use it to make recommendations for gifts to the charities of your choice. Your recommendations must be approved by the SRCCF Board of Directors. The Foundation takes care of processing your gift and mailing it to the recipient organization. The Foundation also works to make you aware of additional giving opportunities that may interest you.
CREATING A DONOR ADVISED FUND
You set up a Donor Advised Fund by signing a fund agreement with the SRCCF and making a contribution to the Fund. You, the fundholder(s), or those designated by you, can make recommendations for gifts to charitable organizations.
When you establish a Donor Advised Fund, you will also make plans for how you want the assets in the Fund to be handled when all donors are no longer living. You can name successor advisors, or you can designate the Foundation to manage the assets in the Fund, giving specific instructions concerning what charities or causes you wish the Fund to continue to support.
The SRCCF will provide you regular reports on the status of your Fund. We will invest the funds given to the SRCCF, so you need to be aware that funds may gain or lose due to investment returns.
By having a Donor Advised Fund at the SRCCF, your charitable gifts give twice; you can make gifts to the charities that are important to you and you are helping the SRCCF grow philanthropy in Starved Rock Country now and far into the future.
FUNDING A DONOR ADVISED FUND
Most donors make gifts to their DAF by check or by transferring gifts of appreciated stocks or mutual fund shares. The donor can use the gift as a charitable deduction at tax time. For appreciated shares given, the donor does not have to pay capital gains taxes on the appreciated value if the shares are transferred directly to the Foundation. The process is easy:
- Discuss your gift with us at the SRCCF to allow us to arrange for an account with your brokerage firm.
- Instruct your broker to transfer shares or stocks that you wish to contribute to the SRCCF.
- The Foundation will send you a thank you letter and a tax deduction notice for the value of the gift.
- The SRCCF will credit the gift to your Fund.
A couple of notes…all gifts to the Illinois Prairie Community Foundation are by law irrevocable and become the property of the SRCCF. Donor Advised Fund gifts cannot be used to satisfy legally-binding pledges.
USING YOUR DONOR ADVISED FUND
Using your Donor Advised Fund is easy. Each time you wish to make a gift to a charity, please fill out a Donor Advised Fund Distribution Recommendation Form and send it to the SRCCF. Forms are available at the SRCCF office, 718 Columbus Street, Ottawa, Illinois, or we will be happy to mail the form to you.
If you wish to make multiple contributions at the same time, you can complete one form and attach the list of organizations, their addresses, and the amount you wish to go to each. On the form, fill in the amount total of all distributions and on the line for the organization, note “see attached list.”
Allow 2-4 weeks for the organizations to receive their checks. If you need a more immediate response, just give us a call and we will do our best to honor your request. Remember that all contribution recommendations from Donor Advised Funds need to be for an amount of $200 or more. We also ask that you make 25 or fewer donations from your fund per year.
The Foundation is responsible for making sure that all gifts meet current IRS regulations. Additional time may be needed if the Foundation needs to confirm the 501(c)3 status of a charity, or the appropriateness of the gift before a donation can be sent.
You can make additional gifts to your Fund at any time. Creating a Donor Advised Fund at the SRCCF is an important philanthropic step. We make it easy to support the causes that are meaningful to you while at the same time you are helping us build our Community Foundation and grow philanthropy in the Starved Rock Country area.
GOOD IDEAS FOR DONOR ADVISED FUND HOLDERS
One fund holder set up her fund so that her adult children can make gifts up to a certain amount each year to encourage their philanthropic awareness and involvement.
Siblings who each have a DAF sometimes get together on a joint giving effort. For example, three siblings who each have their own DAFs recently made a joint gift to plant trees at an Illinois College in honor of a family member. You can name a DAF using your own name or to honor someone or memorialize a loved one. You can have your own fund remain anonymous or designate that you want some or all of the gifts from your fund to be anonymous.
Make gifts to your town or community. Support economic development, local arts and cultural events. If you are out of town for the season, just leave us a schedule of when you would like your gifts made and to whom. We’ll take care of it.
Have a unique gift you want to make? Discuss your charitable giving ideas with us. We’ll be happy to help. Call us at 815-252-2906.