GETTING STARTED

What is a donor-advised fund?

A donor advised fund (DAF) is like a charitable investment account, with the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities or other assets to a donor-advised fund at a public charity, you are generally eligible to take an immediate tax deduction.

Why open a donor-advised fund?

Donor-advised funds enable donors to qualify for a current year tax deduction and recommend grants at a later time at their convenience or when the charitable assets have had a chance to grow. DAFs also make it easier to donate appreciated investments or assets that may be more difficult for charities to accept directly.

Who can open a donor-advised fund?

Individuals, families, companies, foundations and other entities may open a donor-advised fund.

What amount do I need to start a fund?

Donor-advised funds can be established with an initial contribution of $5000 or more.

GIFTS

Can I make additional contributions to the fund? Is there a minimum amount?

You are encouraged to make additional contributions to the fund. You will be entitled to take a tax deduction each time you make an additional gift of any size. Other people (or corporations) can also make gifts to your fund. There is no minimum contribution amount.

Can I give stock?

Absolutely! Many donors find that appreciated stock is the most beneficial contribution possible because they receive a tax deduction based on the full market value of the share, but they realize no capital gains when the stock is sold by CFWG.

INVESTMENTS

How will my DAF be invested?

At the time you establish your fund, you may invest it in CFWG’s investment pool of funds. We are happy to provide a copy of our investment policy and current portfolio mixture. Please note that growth inside your DAF account is not eligible for additional charitable deduction.

GRANTS

How do I suggest a grant?

You may make a grant request utilizing your donor portal.

What are the restrictions on grant making?

By law, community foundations can only make grants for public charitable purposes. CFWG will generally only make grants to qualified tax exempt 501(c)(3) charities, churches and schools. CFWG cannot make a grant if the donor receives any benefit from the grant (e.g. raffle tickets, tickets to e benefit dinner or event, memberships, payment of a relative’s tuition to an educational institution, etc).

Can CFWG provide information about worthwhile projects and organizations to support?

Yes! Our staff can work with you to identify nonprofit organizations and/or charitable projects that meet your charitable goals.

Can I make grants to organizations outside the region?

Yes. While CFWG;s mission is to improve the quality of life in Carroll, Haralson and Heard Counties, we understand that many people have charitable interests outside the region. Therefore, any qualified public charity in the U.S. may receive grants from a CFWG donor-advised fund.

Will my grant contain the name of my fund when it is sent?

Yes. Your fund name will be identified when the funds are sent to the designated charity. If you choose to make the gift anonymously, your information will not be released.

FEES

What are the fees? Do I have to pay any fees out of pocket?

Charitable administration fees cover grant making, asset management, recordkeeping, annual audits, tax filing, quarterly statements, insurance and various other operating expenses. CFWG’s administrative fees are typically 1.25% with the total fee amount determined by the market value of the fund. The fee is calculated and assessed on a quarterly basis and is similar to fees charged by community foundations throughout the nation. A fee schedule will be provided to you when you open your fund. All fees are collected from the investments, so you need not pay any amount out of pocket.

SUCCESSION

What happens to my fund after I die?

If you have names one or more successor advisors, they will have the right to make grant suggestions until their death(s). If you have not names a successor advisor or after the lifetime(s) of your successor advisor(s), the fund will generally convert to an unrestricted fund at CFWG, and the distributable income will be used to benefit worthy nonprofit organizations in Carroll, Haralson and Heard Counties. Alternatively, you may specify the fund to convert to an endowment that benefits certain charities or areas of interest you choose. In this case, you must advise CFWG of the charities you have selected.