Creating a Legacy of Charitable Giving

Donor-Advised Fund Forms:

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Why Should I Establish a Donor-Advised Fund?
How Does A Donor-Advised Fund Work?
What Is a Donor-Advised Fund?
How Do I Establish A Donor-Advised Fund?
How Are The Donor-Advised Fund Assets Invested?
How Do I Make Charitable Contributions?
What Are The Management Fees Of The Donor-Advised Fund?

Why Should I Establish a Donor-Advised Fund?

Donor Control. You establish an account in the name of your choice that lives on in perpetuity.

Flexibility. You can make immediate, substantial, and irrevocable charitable donations now and spread disbursals over a number of years.

Successor Election. The donor-advised fund offers a successor election feature that allows you to name a representative to take over your account following your death or incapacity.

Stewardship. Through our low administrative costs more of your contributions can directly benefit charitable causes.

Tax Advantages. Immediate charitable gift tax deduction gives you a tax advantage on the date that the contribution is made to the donor-advised fund.

Low Cost and Ongoing Administration. The assets that you donate to the donor-advised fund grow tax-free. The donor-advised fund provides tax documentation, recordkeeping of account activity and investments, and disbursals from your named account to the charities of your choice.

Enhanced Estate Planning and Estate Tax Reduction. Assets contributed to the donor-advised fund during your lifetime are removed from your estate and therefore are not subject to estate taxes or to probate.

How Does A Donor-Advised Fund Work?

A donor-advisor makes an irrevocable gift to the donor-advised fund.
The assets are tracked in an account opened in the name of the donor-advisor’s choice. Assets are invested in the donor-advisor’s choice of three investment funds.
The donor-advisor receives a letter from the donor-advised fund acknowledging the charitable gift.
The donor-advisor submits a written recommendation that all or a portion of the account be disbursed to one or more charitable organization.
The donor-advised fund approves the charitable gift after verifying the recipients tax-exempt status.
The donor-advised fund of the Virginia Baptist Foundation sends a check to the approved charitable organization. The donor-advisor receives a confirmation letter of the charitable gift.

What Is a Donor-Advised Fund?

A donor-advised fund allows you to make an irrevocable contribution to a named account established with the Donor-Advised Fund and The Virginia Baptist Foundation. Contributions and all related future earnings are property of the Donor-Advised Fund of The Virginia Baptist Foundation. At a later time you recommend that the Donor-Advised Fund of The Virginia Baptist Foundation make disbursals from the account to your favorite charities.

How Do I Establish A Donor-Advised Fund?

To establish a donor-advised fund, you make an irrevocable and unconditional gift of cash, marketable securities or other qualified assets to the Donor-Advised Fund of The Virginia Baptist Foundation. The minimum initial contribution is $5,000. Additional contributions will be accepted in increments of $1,000. If a contribution is not acceptable for any reason by the Donor-Advised Fund of The Virginia Baptist Foundation, the contribution is returned as soon as possible.

How Are The Donor-Advised Fund Assets Invested?

Donated assets are invested in a choice of three investment funds. The fund(s) are selected on the donor’s philanthropic objectives, the time frame for disbursals and tolerance for risk. The three investment funds are:

Growth Fund
Balanced Fund
Fixed Fund

How Do I Make Charitable Contributions?

When you establish an account, you will receive several copies of a disbursal recommendation form. A donor-advisor recommends that a disbursal be made from a named account, specifying the recipient, the dollar amount and the fund(s) from which the disbursal should be made. Disbursals can only be made to the following organizations:

Organizations that qualify as tax-exempt under Section 170(c) of the Internal Revenue Code.
Nonprofit organizations that are public charities as defined by Section 509(a) of the Internal Revenue Code.
Disbursals cannot be made for lobbying purposes or to support political campaigns.
Proposed disbursals must be equal to or less than the balance in your named account.

What Are The Management Fees Of The Donor-Advised Fund?

The Donor-Advised Fund of The Virginia Baptist Foundation is a nonprofit organization that encourages charitable giving by providing cost-effective, convenient vehicles for estate planning and charitable giving purposes. The Donor-Advised Fund of The Virginia Baptist Foundation incurs general operating expenses, including legal and accounting fees, management fees, marketing fees, etc. To cover these administrative costs, an annual assessment of .008% (80 basis points) of the donor-advised account value on 12/31/xx will be assessed. These costs will be collected quarterly (.002% or 20 basis points) from the account.

Giving generously and intelligently to charitable organizations through the donor-advised fund enables a donor to:

Share good fortune.
Advance the causes and ensure the survival of valued institutions.
Leave a mark on the future.

For additional information, please contact The Donor-Advised Fund of The Virginia Baptist Foundation

“You can never do a kindness too soon because you never know how soon it will be too late.” – Ralph Waldo Emerson

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