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A donor-advised fund is one of the most popular, effective, and easy ways to support the issues and groups you care about most.
Donor-advised funds can be named to recognize you, the donor—or a family member, friend, or organization. This type of fund enables you to recommend that grants be made from your fund in any amount and at any time.
What are the benefits?
- A primary benefit of donor-advised funds is that you may remain actively involved in recommending grants long after you've made contributions to your fund—without the administrative and regulatory headaches of establishing and running a private foundation. Take a moment to review this comparison chart of an HCF donor advised fund vs. establishing a private foundation.
- HCF is responsible for all administrative aspects of the fund, including qualifying grant recipients to be sure they have nonprofit status with the IRS, managing its assets, and handling all filings with the IRS.
- A donor-advised fund can be established as an endowment, which grows over time and enables grants to be made in perpetuity, or as an expendable fund, which can be allocated as grants in its entirety, if the donor so chooses.
- You can recommend an investment strategy consistent with your financial and charitable goals.
- You can contribute a wide variety of assets to your fund.
- You can view updated information on your fund online and can make grant recommendations electronically.
How to get started:
To open a donor-advised fund, we suggest you complete and send us a Worksheet for Opening a Fund at HCF, which will be used to prepare a draft of a Fund Agreement and as the basis of further discussions with you about your goals and interests. Or you can contact a representative of the Homebuilding Community Foundation.
Administrative Fee:
The basic annual administrative fee for a donor-advised fund is .5% of assets, with a minimum fee of $500 per year.
The Homebuilding Community Foundation also provides a wide variety of other funds and estate planning tools to help you meet your charitable and financial goals.
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