What is a Donor-Advised Fund?
It is a type of fund that allows you to support the issues and organizations you care about. Once you establish a fund—using cash, stock, or other assets—you may recommend grants to U.S. based nonprofit organizations of your choice, without geographic restrictions. The grants will be made in the name of the fund, or—if you choose—anonymously. You may claim a charitable deduction in the year the gift to a fund is made. ETCF ensures that grant recipients meet accepted criteria for being fiscally responsible and are able to fulfill your expectations for the use of the grants. A Donor-Advised Fund is a way to Give that is: Personal You can recommend grants to your favorite U.S. based charities, wherever they are located —whether in East Texas or beyond. Flexible You can add to the fund whenever you want. ETCF can accept donations of almost any asset, including stock, real property and mineral interests. Efficient ETCF keeps track of your donations and will provide a single year end report for tax purposes. The Foundation holds, manages, and invests the assets. Accountable You receive a quarterly statement showing all activity in the fund, including grants from the fund and gifts to the fund (or, you can review information about the fund online). Easy You can recommend grants online in just a few minutes. Fast A donor-advised fund can be set up in a matter of hours. Informed ETCF staff is available to help you learn more about groups that meet your needs. Family-Friendly You can involve your family in charity at any time—and allow them to advise grants from the fund into the future. Who is it for? A donor-advised fund is ideal for families and individuals who:
- Demand simplicity
- Support multiple charities
- Require maximum impact from their charitable dollars through evaluation and analysis of grant recipients
- Need to make charitable contributions at times that are financially advantageous from a tax standpoint
- Donor Advised Funds are charged the greater of 1% of the fund balance, 1% of actual distributions, or $250 per year (for funds up to $1,000,000). For funds with balances above $1,000,000, fees are .75% for the next $1,000,000, .50% for the next $3,000,000, .35% for the next $5,000,000, and .25% for the balance of the fund over $10,000,000. In addition, each fund is charged for out-of-pocket expenses such as investment management fees, sales commissions, or other handling fees incurred directly by the fund.
- There is no minimum opening gift.
- The minimum amount for each grant made from the fund is $100.00.
- There is no fee to establish a fund.
- Funds may be endowed (ensuring that grants are made in perpetuity) or expendable (which enables you to make grants of any size at any time).
How to Get Started
- Discuss a donor-advised fund with your financial advisor or with ETCF
- ETCF will customize a Fund Agreement for you.
- Make an initial contribution.
- Begin recommending grants.