Donor-Advised Fund
A donor-advised fund with Illinois Prairie Community Foundation provides a simple, flexible and tax-efficient way to streamline your charitable giving. You make a gift to establish the fund and then remain actively involved by suggesting grants from the fund to the nonprofit organizations you wish to support. The ease of use and potential tax advantages make donor-advised funds the fastest growing charitable giving vehicle in the nation.
DONOR-ADVISED FUND
A donor-advised fund is easy to establish and maintain. With a donor-advised fund, you’ll enjoy:
- 24/7 online access to view your account and recommend grants to your favorite charities
- Ability to transfer highly-appreciated assets, benefit from an income tax deduction, avoid capital gains on the sale and grow the proceeds for your own grantmaking and even to leave a legacy for children and grandchildren to continue your philanthropic commitments
- Request that checks from your fund be sent to charities in your name or anonymously, depending on each situation
HOW IT WORKS
Donor-advised funds allow you to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction. Then, you can recommend gifts to favorite charities from the fund when the time is right.
- A donor-advised fund operates a lot like a checking or investment account, just for charity.
- Your donor-advised fund is established according to specific IRS guidelines that create tax advantages and support ease of administration.
- Assets in the fund are invested to align with your investment philosophy and goals for the fund.
HOW DOES IPCF HELP?
When you establish a donor-advised fund at IPCF, you are part of a community of giving and you have opportunities to collaborate with other donors who share similar interests. In addition, you’re supported in strategic grant making, family philanthropy and opportunities to gain deep knowledge about local issues and nonprofits making a difference.
The team at IPCF works with you to:
- Select a name for your fund, whether your family name or something less specific
- Receive benefits from the Illinois Gives Act if you create an endowed donor-advised fund. The Act provides a 25% state tax credit for all donations to new or existing endowed funds
- Discover ways to involve your family in your giving, such as naming them as successor advisors who can step in upon your death or incapacity
DONOR-ADVISED FUND VS PRIVATE FOUNDATION
Establishing a donor-advised fund at IPCF offers nearly the same functionality as a private foundation, in that you and your family members can use either vehicle to support your favorite charitable causes and organizations. Unlike a private foundation, a donor-advised fund provides maximum tax benefits (higher AGI limitations and fair market valuation for contributing hard-to-value assets), is not subject to excise taxes, and permits confidentiality (including the ability to grant anonymously to charities).
WE ARE HERE FOR YOU!
Whatever your charitable giving goals may be, our team at IPCF can help. We care about our community as much as you do. Deeply familiar with local nonprofits, we serve as a resource to help you give when, how and to the causes you want. Our tools and back-office administration capabilities make it easy to keep your giving organized and tax-savvy.