By David Brantz
Kottke & Brantz, LLC
Chair, Board of Trustees
Sometimes, there’s nothing like a healthy debate to hone one’s point of view.
In an opinion recently published by The Chronicle of Philanthropy – “Donor-Advised Funds a ‘Bad Deal’ for Society” – Boston College law professor Ray Madoff and philanthropist Lewis Cullman cite the immediate tax benefits of DAFs, but also argue that DAFs “stockpile billions of dollars in donated funds with no timeline for putting them to philanthropic use,” and that “fund managers make grants at their own discretion and face no regulations on when to disburse the money or in what amounts.”
Not so at The Community Foundation. I’m a big fan of Donor-Advised Funds because they provide a simple way for individuals, families and businesses to make a lasting difference in Boulder County and beyond. And I have certainly never thought of DAFs as a “stockpile.” DAF-holders at the foundation have a flexible spending policy, and many spend significantly more per year than the 5% requirement that applies to private foundations. In fact, across all our funds, the foundation awards around 10% annually in grants relative to our assets under management.
DAFs also support a long-term resource strategy. In off-years, economically, when many givers find they are limited by circumstance around their annual philanthropic budgets, The Community Foundation has encouraged – and seen – our DAF donors give out consistent (or even greater) amounts to nonprofits to help meet their annual operating requirements. Lastly, DAFs can create a flexible endowment – giving out more in donations over time than the original gift, with the ability to address changing needs in our community.
When you open a DAF with us, you have the opportunity to leave a legacy and be part of something bigger – whether that means designating your loved ones as successor fundholders, or focusing your support for certain causes, like school readiness or inclusivity in our community.
Fundholders get to be personally involved with their giving, without managing administrative or organizational details. The Community Foundation knows local nonprofits, and facilitates introductions and site visits for interested donors. Not to mention, you can name your fund after your family or choose to be anonymous, and you’ll have occasions to connect with other community-minded residents who are equally inspired to ignite action around a range of issues facing Boulder County. The Community Foundation truly helps families with DAFs make giving a family venture.
For donors who want to make informed decisions about smart, meaningful philanthropy, The Community Foundation offers a track record as a reliable steward of financial investments that make a difference and meet individual investment goals and charitable aspirations.
As for any fees paid to The Community Foundation to administer the funds, I appreciate that they support the foundation’s work locally. I consider them a donation toward the premium services and overall good work of the foundation – which is above and beyond what you’ll get at, say, Schwab or Fidelity.
Bottom line, The Community Foundation has done the research and we understand Boulder County’s greatest needs. We are uniquely positioned to provide DAF services that create a flexible, lasting legacy of charitable giving. To explore The Community Foundation’s DAF opportunities and our full range of investment options, contact Margaret Katz, Director of Philanthropic Services, at margaret@commfound.org.
