Donor Advised Funds through Friends Fiduciary Corporation enable charitably inclined donors to be more actively involved in furthering their philanthropic goals. An individual or couple can establish donor advised funds, as can any group of people with shared charitable interests.
Donor advised funds enable the donor(s) to play an active role in grantmaking without incurring the administrative and tax expense of maintaining a private foundation. A Donor Advised Fund is an irrevocable gift and the donor received a tax deduction for the full amount of the gift at the time the gift is made. Once a fund is established, the donor/advisors are able to make grant recommendations to the Friends Fiduciary Corporation Planned Giving Committee, who must retain final responsibility for all distributions in order to comply with IRS rules concerning Donor Advised Funds
Friends Fiduciary Corporation Donor Advised program seeks to provide service to and benefit Quakers and non-Quakers who want to financially assist Quaker institutions and non-Quaker 501c3 organizations in harmony with the values of Friends. See FFC's Donor Advised Policy (Click for PDF) for more information.
All donors will complete a Donor Advised Fund Setup Form and Agreement (click for PDF). Upon receipt of the signed Agreement, FFC will review the gift. Once approved by FFC, assets or cash or securities will be accepted. When the assets received have reached the $50,000 minimum, recommendations can be made for grant distributions. (A donor can start up a fund with a minimum beginning contribution of $10,000 and then take a maximum of three years to build up the fund to the minimum of $50,000.) The donor will determine at the time of the gift whether just income or income and principal can be used in grant distributions. Donors may choose from several Donor/Advisory Committee and termination/ final charitable beneficiary options but these determinations must be made when the fund is first set-up.
Once a fund is approved and fully funded, written grant recommendations can be made at anytime. However, grant distributions will be made on a semi-annual basis, following approval by the Planned Giving Committee. The donor-advisor can recommend different grant beneficiaries at every distribution; the minimum grant recommendation to any one organization will be $500. Grant and final beneficiary recipients must be Quaker organizations or non-Quaker nonprofits who are in harmony with Friends Testimonies and Concerns. See the Guidelines for Selection of Non Quaker Grantee/Recipents for detail on non-Quaker organizations receivng grants from the fund. (click for pdf)
The donor/advisory committee can is able to make recommendations as to what 501c3 organizations should receive grants from the fund. FFC’s Planned Giving Committee or an appointed sub-committee will provide oversight and approval for all donor-advised fund grant recommendations. In order to be a charitable gift, legally, a donor advised fund must be an irrevocable gift and the recommendations from the donor cannot be binding. Therefore, all decisions concerning grant and final beneficiary recommendations by FFC and its Committees will be final. (click for Donor Advised Funds Grant Form PDF)
Donor advised funds will be invested in the Consolidated Fund. This serves the dual purpose of reducing the administrative cost of the donor advised funds, leaving more for distribution, and spreading the cost of operating the Consolidated Fund across more constituents. Donor advised funds will receive the same semi-annual payout as other Consolidated Fund constituents.
Donor Advised Funds will share in the operating cost of the Consolidated Fund as do all constituents. In addition, there will be an annual service charge of $250 or 1.00% (100 basis points), whichever is higher. FFC reserves the right to modify the fee structure from time to time.
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