Donor Advised Funds
Excess Business Holdings Rules for Donor Advised Funds
Legal Compliance Guidance
Under the Pension Protection Act of 2006 (PPA), the private foundation excess business holdings rule applies to donor-advised funds as if they were private foundations.1 That is, the holdings of a donor-advised fund in a business enterprise, together with the holdings of persons who are…
Substantiating Contributions to Donor-Advised Funds
Legal Compliance Guidance, Fundamentals
What requirements must our foundation follow for substantiating contributions to donor-advised funds?
To claim a charitable, gift or estate tax deduction for any contribution to a donor-advised fund, donors must obtain a contemporaneous written acknowledgement from the sponsoring organization that…
Taxable Distributions for Donor Advised Funds
Fundamentals, Legal Compliance Guidance
Public charities that hold donor advised funds must comply with special rules regarding payments from such funds. Provisions under the Pension Protection Act of 2006 require certain payments from donor advised funds to be made using expenditure responsibility, while certain other payments are…
Grants to Organizations from Donor-Advised Funds: Is Expenditure Responsibility Required?
Legal Compliance Guidance
Use this flowchart to determine if grants from donor-advised funds require expenditure responsibility.
Donor Advised Fund Gift to a 501(c)(3) Donor
Legal Compliance Guidance
Can a 501(c)(3) organization with a donor advised fund at a community foundation make a distribution to itself?
Unfortunately, when the law changed under the Pension Protection Act of 2006, this was left unclear. Intermediate sanctions rules prohibit grants and similar payments to donors from a…
Gifts from Private Foundations to Donor Advised Funds
Legal Compliance Guidance
Gifts from private foundations to field of interest funds, designated funds, and other funds that are not donor advised, are entirely permissible and do not raise special concerns. Gifts to a donor-advised fund can raise red flags as a potential donor control issue. The law does not prohibit gifts…
International Grantmaking from Donor Advised Funds
Legal Compliance Guidance
In existence since the 1930s, donor advised funds have been one of the fastest growing charitable giving vehicles of the past decade.[1] Capitalizing on this growth and on the increasing interest in international philanthropy among donors in the United States, a number of public charities have…
Creating an Inactive Funds Policy
Legal Compliance Guidance
Imagine the following scenarios:
A donor advisor has not made a recommendation from a donor advised fund for two years.
An agency has requested that your community foundation not make a distribution from an agency endowment until the agency requests a distribution at some point in the future.
A…
2009 Survey on Donor Advised Funds: Donor Advised Funds Provide the Majority of Grant Funds Awarded by Community Foundations
Research
Donor-advised funds are increasing in number and importance in the U.S. as more individuals, families, and organizations adopt this vehicle of philanthropic giving. A donor-advised fund enables a third party, usually a community foundation or other institution, to manage and distribute funds to…
Workplace Giving Had a Reboot in 2012 to Meet Changes, Challenges in the Economy
In 2012 there were further signs that the once staid tradition of employees taking part in annual workplace giving campaigns has been upended by digital technology, younger workers with new ideas, and the need for more engagement between employers and employees. Those are the preliminary findings…
Is Family Philanthropy Ready for “New Giving” Tools?
At next month’s Council on Foundations 2013 Family Philanthropy Conference, consultant Nathan James and I are hosting a session, “Is Family Philanthropy Ready for Adventures in New Giving?” We’ll be discussing potential intersections between family philanthropy and the new wave of giving tools…
Giving Circles: A 360-Degree Approach to Philanthropy
The Northern Virginia region includes Loudoun County, a traditionally rural area that has seen drastic suburbanization and growth in the past two decades. The shift in its focus and population caused those of us at the Community Foundation for Northern Virginia to ask an age-old question: How do we…
What Business Do Community Foundations Have In Business?
What business does a community foundation have hawking for-profit deals to its donors and other community members? How does it improve the quality of life in their community? How does it promote the spirit and practice of philanthropy and service? Well it turns out, some community foundations…
Thoughts from a First-Time Conference Attendee
Let me introduce myself: I’m a young leader and a passionate advocate for social justice. I’m well into my second year as executive director of Social Justice Fund, a regional progressive public foundation. I’m an innovator. Since starting my role, I have implemented a new model of grassroots…
DAF Data Goes to Washington
I didn’t go to “Foundations on the Hill” (FOTH) but was there in spirit through the data and stories collected by FSG and CF Insights. On March 21-22 representatives of organized philanthropy gathered in Washington, D.C., for two days of face-to-face meetings with lawmakers and their staff.
For…
The Best of Both Worlds: Back to the Future of Philanthropy
Ask anyone to name the greatest philanthropists of all time – Jewish or otherwise – and they will invariably identify people known for giving away huge sums of money. From Rockefeller to Rothschild, from Buffet to Blaustein, from Morgan to Montefiore, most of us have come to equate philanthropy…