DONOR ADVISED FUNDS
A donor advised fund is a vehicle by which individuals or organizations make an irrevocable contribution to an organization, and then recommend to that organization how the gift should be distributed to charities. The gift from the donor is invested, creating an opportunity for the gift to grow. A donor advised fund provides an easy flexible way for you to direct your charitable giving to a variety of charities over time while receiving immediate tax benefits. You create the fund without having to name specific charities or gifts, and then recommend grants to specific charities at times of your choosing. Donor advised funds can be established through the Florida Baptist Foundation with an initial gift of at least $5,000.
What are some benefits of a Donor Advised Fund?
Receive a full charitable income tax deduction in the year contributions are made
Avoid capital gains taxes by gifting appreciated property
Advise the selection of the ministry recipients each year
Select a name for the fund
Fund grows tax free until grants are made to ministries
Pass down to family a giving tradition
Advise the investment asset allocation within the Foundation’s parameters
Children can eventually become fund advisors after the donors’ deaths
Additional gifts to the fund are welcome
No legal fees to establish
Simplify your charitable giving and record keeping
A simple alternative to a Private Foundation
Confidentiality, if you prefer, grants can be made anonymously
What do you mean by ‘tax-deductible contribution?’
The Internal Revenue Service (IRS) allows individuals who itemize on their tax returns to deduct contributions to qualified charities. Because some limitations apply to what you may deduct, it is wise for you to seek the services of a professional advisor regarding all tax-related matters.
What are the advantages of creating a Donor Advised Fund?
With a Donor Advised Fund, you accomplish all of your stewardship objectives in one place and ensure that your gifts go to causes that operate in accordance with Christian values. You also have the advantage of timing your gifting program as you seek God’s will for your stewardship. You receive a tax deduction in the year you make the gift, but you have 10 years to recommend a distribution from your fund. If you contribute unencumbered long term appreciated assets, you may receive an immediate tax deduction based on the full value of the asset and pay no capital gains tax on the appreciation. You effectively bypass the administrative burdens and costs associated with establishing and maintaining a private foundation.
Who can establish a Donor Advised Fund?
Any individual or organization can create a Donor Advised Fund by contributing cash, publicly traded stocks, bonds and mutual funds.
What are the advantages of setting up a fund through Florida Baptist Foundation versus another organization?
When you establish a fund through the Baptist Foundation, you guarantee that your money will go only to organizations that are not in conflict with Christian values. Also, the Baptist Foundation’s minimum contribution, distribution and administrative fees are lower, therefore making it easier for donors to set up a fund.
3 Additional reasons to consider a Donor Advised Fund through the Florida Baptist Foundation!
- Professional management. Each gift to your Donor Advised Fund is invested in one of the Foundation’s diversified investment portfolios based on your stewardship plans. In addition, the Foundation handles all of your fund’s record keeping and tax reporting.
- Giving expertise. The Foundation’s staff is available to assist you in defining your charitable goals and to identify charitable causes that match your giving interests.
- No legal fees. There are no legal fees associated with creating a Donor Advised Fund, and you effectively bypass the administrative burdens associated with establishing and maintaining a private family foundation.
How do I make contributions?
For your initial contribution, you must complete a Donor Advised Fund Application and Agreement, and if applicable, the proper forms to transfer stock or mutual funds. Cash contributions can accompany the completed Application and Agreement. The minimum amount for opening a Fund is $5,000. You may make additional contributions of $500 or more at any time.
Once I've established a Donor Advised Fund, when can I start recommending distributions from the fund?
Contributions must be on deposit with the Foundation a minimum of 60 days before distributions may be recommended. For example, gifts received on March 20 would be able to be distributed on May 20.
How do I recommend distributions from my Fund?
It’s simple. Just complete a distribution recommendation form. You can even maintain a list of favorite organizations and ministries. Grants can be made in your name, in honor or memory of a loved one or anonymously if you choose.
What if I don't know where to donate my money?
The Donor Advised Fund allows you time to organize and plan your stewardship and grants. You can even create your grants to become perpetual endowments that will last forever.
Can I name my Fund?
Absolutely, in fact, a fund with FBF is very much like having your own foundation. You can personalize it any way you like (i.e., The Smith Family Fund).
If the distributions come from FBF, will the organization or ministry know it's from me?
Only if you prefer. A personal letter written by FBF staff accompanies the Foundation’s check explaining who the donation is from. However, you also have the option of remaining anonymous. Just specify on the distribution recommendation form that you wish to remain anonymous. This is also stated in a personal letter from FBF.
Can I name additional advisors and successors to my Donor Advised Fund?
You may designate others to be involved in making future recommendations from your fund.
What are the fees to establish a Donor Advised Fund?
The Foundation does not charge a fee to establish a Donor Advised Fund. There is a $15.00 charge for each grant distribution paid from the Fund. The Foundation will charge administration fees against the Fund for investment managers in accord with its standard procedures.
Who do I contact for more information?
Contact the Florida Baptist Foundation, a ministry of Florida Baptist Financial Services, Inc., an agency of Florida Baptist Convention.
Florida Baptist Foundation
1320 Hendricks Avenue
Jacksonville, Florida 32207
904-346-0325 or 800-780-0325