Donor-Advised Funds

How a Donor-Advised Fund Works

A donor-advised fund can help your client achieve thier charitable goals. It can be established and funded currently. Or, your client can name it as a charitable beneficiary of thier will, charitable trust, gift annuity, retirement plan or insurance policy.

Gifting Advice

Just as the name implies, each year your client can advise as to whom, how much and when to give from the fund. They may change the charities that benefit from their fund without the expense of changing wills, trust or legal documents. With a donor-advised fund, your client can name successors to carry on their charitable goals. For example, they may name their children, grandchildren or other trusted advisors to carry on their legacy. This will allow them to pass their giving values on to future generations.

Investment Advice

Your client may be able to make suggestions as to the investment advisor that manages the fund’s investment. This enables a trusted financial advisor to help accomplish your client’s charitable giving goals.

Private

If your client chooses, they can maintain anonymity. The donor-advised fund is never subject to the public record. This means that your client’s fund will not be solicited by charities except through their own activity.

Tax Advantages

The donor-advised fund qualifies for the highest charitable income and estate tax deductions allowed by law, while bypassing capital gains tax on gifts of appreciated assets to the fund.

Economic and Administrative Efficiency

Your client will save time and money with a donor-advised fund with the Nebraska Community Foundation. Through economies of scale, administrative costs will be minimized. Additionally, they won’t need to comply with required annual tax auditing and reporting. As a part of the NCF, these requirements will be performed for them.

How NCF Can Help

The Nebraska Community Foundation’s knowledgeable staff is dedicated to helping you help your client achieve their charitable gifting goal. NCF does this by offering consultation and training, including proposals that outline all tax and financial benefits and support including assistance to professional advisors in implementing the plan that best meets your client’s wishes.

Private Foundation Conversion

Learn more about how to convert a private foundation to a donor-advised fund with the Nebraska Community Foundation.

Donor-Advised Fund Policy & Guidelines

The purpose of this Donor-Advised Fund Policy & Guidelines (“Policy”) is to guide the Nebraska Community Foundation (“NCF”) staff and donors in complying with the law applicable to donor-advised funds (“DAFs”) and with NCF administrative policies while achieving donors’ charitable goals.  Download the policy.