What is a Designated Fund?
A designated fund is a charitable tool for the sole purpose of supporting specific charities you care about. Contributions to these funds are typically tax deductible.
If a specific charitable organization has touched your life — a favorite nonprofit, your church, your alma mater — it’s simple to ensure that it receives charitable support forever through a designated fund at the Delaware Community Foundation (DCF). If at some point in the future one or more of your designated charities cease to exist, the DCF will ensure that your fund continues to support charities with programs similar to the ones you named. Once your fund is established, you can trust that the DCF will honor and implement your charitable wishes.
How a Designated Fund Works
- Open the fund with an initial gift to the DCF of $25,000 or more in cash or other assets, such as appreciated stock, mutual funds or real estate. Most establishing gifts are tax deductible.
- Name the fund for yourself, your family, or your business, or create a name that provides anonymity. The DCF can ensure your grants are made anonymously if you wish.
- Name beneficiaries. Select up to 5 public charities to benefit from one fund. Beneficiary designations are permanent.
- Choose an investment strategy from the DCF’s investment pools or ask about way to keep your personal financial advisor involved, including through our Charitable Partners Program.
- Add to your fund at any time to take advantage of additional tax benefits while increasing the amount available for grants.
- The DCF Awards Grants to the beneficiaries of the fund each year.
- Review your fund activity online.
The DCF handles all the administrative requirements of the fund, from investments to paperwork.
A designated fund at the DCF is a giving tool that empowers you to support a personal area of interest while recognizing that needs change over time. To begin the process of establishing your designated fund, please contact us at [email protected] or 302.571.8004.