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.
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:
Larry Master, courtesy of Adirondack Foundation
In-Depth knowledge on Donor Advised Funds
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.
The Pension Protection Act of 2006 includes the first comprehensive regulation of donor advised funds. These requirements generally took effect at the beginning of the tax year following enactment of the Act, for charities that hold assets in such funds. However, a provision barring the payment from donor advised funds of grants, compensation and similar payments to donors, advisors, and persons related to them took effect immediately on August 17, 2006. Understanding the definition of what is a donor advised fund also is important to the implementation of the Act’s charitable IRA rollover provision because rollovers are not permitted into donor advised funds.
Your giving program looks like a convenient vehicle for fulfilling personal charitable pledges. Here’s what you need to know about when to say “no.”
Council summary of Treasury Department report on donor advised funds and supporting organizations.
This chart details what organizations can and cannot receive grants from donor advised funds.
Information on bringing scholarship funds into compliance under the PPA.
Frequently asked questions about prohibited grants from donor advised funds following the Pension Protection Act of 2006.