Donor Advised Funds
With a Donor Advised Fund, you can be actively involved in furthering your philanthropic goals. Donors can be individuals, couples, families or any group of people with charitable intent. Friends Fiduciary’s program allows you to assist both Quaker institutions and non-Quaker 501c3 organizations that are in harmony with the values of Friends.
A Donor Advised Fund:
- Is an irrevocable gift
- Provides a tax deduction for the full amount of the gift in the year the gift is made
- Allows donors to play an active role in grantmaking
- Has lower administrative and tax expenses than a private foundation
- Is established with a minimum gift of $25,000
- Can be started with an initial contribution of $5,000 and built up over three years to reach the minimum
- Can receive an additional gift to the fund at any time
Establishing Your Donor Advised Fund
Complete the Donor Advised Fund Setup Form & Agreement. Friends Fiduciary will review the signed agreement and, upon approval, assets of cash or securities will be accepted. Once the assets have reached the $25,000 minimum, recommendations can be made for grant distributions. During setup, you may choose from several termination/final charitable beneficiary options.
Assets to Give
A Donor Advised Fund may be established with a gift of cash, appreciated securities, or a combination of both. If you fund your DAF with a gift of appreciated securities that have been owned for more than one year, capital gains tax (that would be due if the donor sold the stock to fund the DAF) is avoided.
Advisory Role for Grantmaking
As part of the fund setup you must choose from several Donor/Advisory Committee options. Please recognize that:
- The Donor/Advisory Committee makes recommendations as to what 501c3 organizations should receive grants from the fund
- To legally qualify as a charitable gift, a Donor Advised Fund must be an irrevocable gift and the recommendations made by you cannot be binding
- Friends Fiduciary’s Charitable Services Committee, or its appointed sub-committee, provide oversight and approval for all Donor Advised Fund grant recommendations
- All decisions concerning grant and final beneficiary recommendations made by Friends Fiduciary and its Committees are final
- Grant requests are approved and distributed on a semi-annual basis
- The Donor/Advisory Committee may recommend different beneficiaries at every distribution or maintain the same pattern of giving for years
- There is a $500 minimum grant recommendation to any one organization
- Grant and final beneficiary recipients must be Quaker organizations or non-Quaker nonprofits that are in harmony with Friends Testimonies and Concerns. (See the Guidelines for Non-Quaker Charities for details on grants to non-Quaker organizations.)
Investment of Donor Advised Funds
All Donor Advised Funds are invested in the Quaker Growth & Income Fund. This reduces administrative and investment costs, leaving more charitable dollars available for distribution. Quaker testimonies and values guide our socially responsible investment activity.
Donor Advised Funds share in the operating cost of the Quaker Growth & Income Fund, as do all constituents. In addition, there is an annual service charge of 1.00% (100 basis points) or $250, whichever is higher. Friends Fiduciary reserves the right to modify the fee structure.