Do you want the most flexibility in your grantmaking? A Donor Advised Fund may be the best vehicle for you, allowing you to make grants to public 501(c)3 charities, churches, and other qualified organizations.

What is a Donor Advised Fund?

A donor advised fund is a charitable tool for the sole purpose of supporting charities you care about. Contributions to these funds are typically tax deductible.

A donor advised fund at the Delaware Community Foundation (DCF) goes a step further. In addition to managing your fund, our team can help you make your grants as powerful as possible by leveraging our knowledge of Delaware and opportunities to effectively address its most critical challenges.

The DCF is a permanent source of charitable funds for our community. You can be confident that the DCF will be here to honor and protect your charitable wishes in perpetuity.

How a Donor Advised Fund Works

  1. 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.
  2. Name the fund for yourself, your family, your business, or create a name that provides anonymity. The DCF can ensure your grants are made anonymously if you wish.
  3. Designate advisors to the fund, such as yourself, your spouse or your children. Name additional advisors, such as family members, to be able to make grant recommendations.
  4. Plan for the future by working with the DCF to design a succession plan for your fund, defining how it is to be used after you are gone.
  5. Choose an investment strategy from the DCF’s investment pools, or ask about ways to keep your personal financial advisor involved.
  6. Recommend grants to nonprofits. Each year, you may consult with the DCF to decide which charities will receive grants from your fund. Grants can be made to any public charity in the U.S., but support of local organizations is encouraged.
  7. Add to your fund at anytime to take advantage of additional tax benefits while increasing the amount available for grants.
  8. Review your fund activity online.

The DCF handles all the administrative requirements of the fund, from investments to paperwork.

All funds are charged fees based on the DCF’s Fee Schedule.

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