The Strengthening Community Philanthropy Ad Hoc Working Group, convened by the Council on Foundations, released the following recommendations on donor-advised fund (DAFs), outlining steps to improve their effective and transparent use.
Donor Advised Funds
Donor advised funds have been a part of the federal tax law of charity for nearly a century as a unique philanthropic tool. Because of the relatively small amount needed to start a DAF compared to assets needed to create a private foundation, DAFs serve as an opportunity for middle class Americans to pursue their philanthropy and to gain the benefit of the foundations’ expertise and experience in helping to guide their giving. Use these resources to learn more and gain valuable insight into managing and administering Donor Advised Funds.
These are a few examples of DAFs that are sparking tremendous change in their communities:
Adirondack Foundation-Evergreen Fund
Larry Master, courtesy of Adirondack Foundation
In-Depth knowledge on Donor Advised Funds
The Strengthening Community Philanthropy Ad Hoc Working Group, convened by the Council on Foundations, released the following recommendations on donor-advised funds (DAFs), outlining steps to improve their effective and transparent use. These recommendations focus on strengthening the sector and better positioning it to continue addressing ongoing challenges.
Variance power is a common topic of conversation at the Council and community foundations often ask how explicitly variance power must be disclosed to donors. This outlines how a multi-state settlement agreement between PayPal Charitable Giving Fund and almost two-dozen states, outlines how PPGF must modify it's website disclosures.
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Sample Fund Activity Policy
This sample Fund Activity Policy provides language to include, either, in a stand-alone policy, or to be incorporated into an existing donor advised fund agreement or policy. Within the sample policy are: 1) acceptable types of grant activity, 2) a framework for activating grantmaking, and 3) definitions of terms used in the context of this sample policy.
Editable donor advised fund policies including grant restrictions, grant recommendations, fund advisors and more.
Editable agreement for donor advised funds.
The Council created these communications tools to assist our members in sharing how donor advised funds are being used to impact their communities. The toolkit includes sample templates and other useful resources to share with local media and other stakeholders in your community.
In this paper, Kevin Murphy, President and CEO of the Berks County Community Foundation and the Council on Foundations’ first Foundation Leader in Residence, explores disruptions to the community foundation business model, the rationale of asset growth, and how changes in the local financial services field may force some fundamental changes on community foundations. Writing from his perspective, Kevin demonstrates that a new narrative is possible about growth and raises important questions regarding the business practices of community foundations.
Council analysis of IRS definition for charitable purpose of donor advised funds.
This webinar explored a survey the Council on Foundations commissioned from the Urban Institute’s Center on Nonprofits and Philanthropy about donor advised funds to community foundations. The survey questions inform the Council, their membership, and the Community Foundation National Standards Board provide a full picture of donor advised funds and their importance to communities nationwide.