“There are notable differences between establishing a Donor-Advised Fund at Community Foundation Boulder County, or at a commercial foundation.”
According to The Chronicle of Philanthropy, contributions to Schwab Charitable – which sponsors Donor-Advised Funds (DAFs) – totaled $3.3B in its 2018 fiscal year. That’s an increase of 9% over contributions generated in 2017.
And there’s no slow-down in sight: DAFs are an increasingly attractive vehicle for charitable giving, thanks to their unique flexibility along with recent tax reforms that raised the standard deduction for individuals to $12K and $24K for couples.
“DAFs allow donors to make a charitable contribution, receive an immediate tax benefit, and then recommend grants from the fund over time,” says Lynda Ricketson, Vice President of Philanthropic Services and the Community Foundation’s newest team member. “But all DAFs are not created equal. There are notable differences between establishing a Donor-Advised Fund at Community Foundation Boulder County, or at a commercial foundation.
“Donors who establish a DAF at the Community Foundation realize the same practical, financial, and tax benefits as those who work with Schwab, Fidelity Charitable, or other providers. You can contribute cash or appreciated non-cash assets and securities to eliminate possible capital gains taxes, you can give whenever it’s convenient for you, and you can manage your giving online … all with the oversight of your own professional advisor, if you wish.
“But what sets us apart is that community foundations are more experienced in managing Donor-Advised Funds than commercial foundations, and we’re able to provide a far more personalized approach to help donors achieve their charitable goals.”
Community foundations have been managing DAFs for nearly a century, whereas commercial DAFs have been in existence for 25 years. Because of their deep community connection, community foundations are able to provide donors extensive knowledge about community issues, as well as unique insights into the causes that individual donors care about most.
“We have the experience and expertise to talk through donors’ giving goals, to connect them to the causes they’re passionate about, and to help them identify how to make a meaningful philanthropic impact,” explains Lynda. “Commercial providers tend to offer a much more transactional experience. We have the same disciplined, ‘back office’ know-how, plus a deep understanding of, and connection to, our community. That’s the value-add that community foundations like ours bring to the equation, thereby better mobilizing donors assets for maximum impact.”
Lynda goes on to say that the Community Foundation’s Philanthropic Services team is well-versed and proactive in helping donors and their families create customized philanthropic mission statements, guiding donor distributions in a timely manner to address specific community concerns, and helping donors make grants nationally and internationally, too, to support any interests they may have beyond our county’s borders.
“It’s a magic moment when a donor is connected to one or more nonprofits, fulfilling and matching his or her philanthropic aspirations with the needs of our community,” she adds. “Because the Community Foundation is also a grantmaker, we are steeped in the knowledge of grantmaking practice and, quite simply, community is our business. Commercial DAF providers are cost-effective, but lack the details, nuances, and interest in aligning precious donor resources to important community needs.”
That’s why the Community Foundation has become a trusted resource for local donors and professional advisors alike, providing philanthropic expertise and services that connect community-minded people who want to give, and the people and causes who need their support. Local professional advisors have come to rely on the Community Foundation to effectively advise their clients on the issues and opportunities for charitable giving – in Boulder County, and beyond.
“Advisors know they can count on us to help educate their clients on a range of issue areas, and ways to be in touch with our community,” Lynda continues. “What’s more, the Community Foundation has been accredited by the Community Foundations National Standards Board, a supporting organization of the Council on Foundations. That’s important because it means we follow the letter of the law … and that we offer our donors full transparency about our financials, our broad investment options, our leadership, and by reporting out the impact of our grantmaking.”
Another benefit of establishing a DAF with the Community Foundation is connecting with other donors who share your giving interests through donor salons and other events organized by us. Alternatively, of course, you may choose to remain anonymous.
“Bottom line, donors aren’t giving up anything when they choose to establish a fund at the foundation, but they stand to gain a lot – not least, a closer connection to the people and the nonprofits that are truly making a difference, and accomplishing more together than going it alone.”
For more information and to create a Donor-Advised Fund, please contact us at Philanthropic Services. Start living your legacy today.
