CFCWI Donor Advised Handbook

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Donor Advised Fund HANDBOOK

A donor advised fund at the Community Foundation of Central Wisconsin is a flexible way for individuals, families, clubs, and businesses to organize your charitable giving.

Our Vision The Community Foundation of Central Wisconsin envisions thriving Portage and Waushara County communities with a strong culture of philanthropy.

Your Community Foundation of Central Wisconsin Team The Foundation team works with you throughout your entire lifetime – and the lifetime of your future advisors. Whether it is through one-on-one meetings, assistance in making grants, non-profit visits, or talking through your charitable goals, the team is here to enrich your philanthropic experience. For more information about donor advised funds or other charitable options, please contact us.

(715) 342-4454 EMAIL: WEBSITE: TEL:

Benefits of Partnering with the Community Foundation Our team is here to help you reap the rewards of your philanthropic experience.

• Provide knowledgeable and professional staff that can help you meet your goals.

• Carry out all accounting and tax reporting related to your fund.

• Complete gift acknowledgement for every donation. • Engage an independent annual audit of the

Foundation’s financial records and practices.

Resources The following are policies and resources that are available upon request.

• • • • • • •

Confidentiality Policy Investment Policy Spending Policy Fee Schedule Gift Acceptance Policy Fundraising Policy Expenditure Responsibility

• Provide professional oversight and management of

the Foundation investment pools in which your fund is invested; you will be invited to attend investment presentations by the Foundation’s investment firm.

• Complete grant processing and determine that

agencies to which you recommend grants are eligible to receive grants per IRS guidelines.

• Provide an online platform to: • Make donations • View your statements, gifts, and grant history • Make grant recommendations


Donor Advised Funds A donor advised fund is a flexible option for charitable giving.

The Foundation team is here to help you achieve your philanthropic goals. Your fund can be endowed for long-term growth or non-endowed to allow for more flexibility in your giving. Endowed Donor Advised Fund When you establish an endowed donor advised fund, your contributions are pooled and invested with all the Foundation’s assets for long-term growth. The Board of Directors has set the annual spending rate at 4% of the 12-quarter trailing average balance of the fund. Your available balance is calculated on July 1st and available for distribution as of August 1st each year. Spendable balances not distributed or granted as of June 30th are reinvested into the principal balance for the new fiscal year.

Non-Endowed Donor Advised Fund A non-endowed donor advised fund offers you the most flexibility for charitable giving. You may make a contribution to the Foundation, receive the tax benefit today, and recommend distribution to charities when you are ready. This type of donor advised fund is also pooled and invested, yet it allows you the flexibility to decide your own annual spending.

Key Benefits of a Donor Advised Fund

Donor advised funds are a cost-effective and efficient alternative to a private, family, or corporate foundation.

There is no cost to set up a donor advised fund and the administrative fees are minimal.

The Foundation provides a diversified portfolio with low management fees.

The Foundation can accept contributions of many types of assets, including stock and real estate.

You can recommend grant distributions online through the Foundation’s secure website, by email, or mail.

You can name a second-generation advisor to make recommendations for the fund into the future.

Donor Advised Fund GUIDELINES

The Community Foundation of Central Wisconsin welcomes the opportunity to partner with people who wish to be actively involved in their charitable giving. Here are the guidelines to help ensure your donor advised fund is managed in accordance with the regulations issued by the IRS.

Recognition Donor advised funds can be named to recognize the donor(s), a family member, friend, business, organization, or group. Or you can select a name for the fund that ensures your anonymity.

Minimum Fund Balance Endowed donor advised funds require a minimum principal fund balance of $10,000. The Foundation provides an option to build toward the $10,000 minimum principal over time. Non-endowed donor advised funds can be started with $1,000 and require no minimum balance.

Administrative Fees Donor advised funds are charged an administrative fee that varies based on the asset value of the fund. The fees charged by the Foundation support fund management, tax return filing, investment performance oversight, an annual independent audit, and grant making. Current administrative fees for a donor advised fund are 1.5% of the first $250,000, 1% is charged on the next $750,000, 0.75% percent on the next $1 million, 0.5% on the next $2 million, and 0.3% on any market values over $4 million.

Investment Management Fees Our investment managers are appointed to implement the investment strategy in accordance with the Foundation’s Investment Policy. The Foundation’s Finance Committee oversees the performance of the investment managers. Investment management fees are charged directly to the investment pools and netted against pool performance. These fees average approximately 0.35% of pool market value.

Contributions You may add to your fund using assets such as cash, securities, and mutual funds that are easily transferred to the Foundation. Other assets, such as real estate, personal property, closely held business interest, life insurance, and annuity policies are subject to review by the Foundation Board of Directors. All contributions should be clearly designated with your fund name. The Foundation can also provide an online giving option specifically for your fund. Gifts to your fund are irrevocable. Upon acceptance of an asset, the Foundation will provide you with a receipt for your charitable income tax deduction, in the year your gift was made, in accordance with IRS regulations. It is important to note that in accordance with current IRS guidelines, gifts from an IRA Qualified Charitable Distribution (QCD) or Required Minimum Distribution (RMD) cannot be made to a donor advised fund. Please contact the Foundation team if you are considering a gift from an IRA via your QCD or RMD.

Fund Advisors and Fund Succession As the fund advisor(s), you have full access to fund activity and investment performance. The Foundation team will work with you to create a succession plan in the event you are no longer able to advise the fund.

Variance Power As required by law, the Foundation has the power to modify any donor direction or restriction. The Foundation does not anticipate exercising such authority unless the purposes for which the fund was established is unable to be fulfilled and the fund advisor is no longer living or cannot be contacted for more than three years. This ensures that no fund will ever become obsolete.

Recommending a Grant • Advisors may make a grant recommendation at any time using:

• A donor advised recommendation form, by mail or in-person,

• An e-mail request, or • An electronic request through the online portal. • Advisors may request a grant of $100 or more. • Advisors may recommend grants to any organization defined as a 501(c)(3) public charity or a 509(a)(1). Grants must be used for charitable purposes as defined by IRS 170(b)(1)(A). Advisors may also recommend grants to most units of government (e.g., public schools, colleges and universities, town and municipal governments, police departments, etc.). Grants to organizations not described in 170(b)(1)(A) of the Internal Revenue Code such as non-charities, private non-operating foundations, or certain supporting organizations of public charities all require expenditure responsibility.

• Foundation staff is responsible for the approval or declination of grants in compliance with the Foundation’s grant policy and the IRS Pension Protection Act of 2006. Each grant recommendation may be subject to approval by the Board of Directors.

• Grants may not be used to satisfy a pledge. An advisor may notify a charitable institution that he or she will recommend a grant from the fund, but the IRS prohibits the Foundation from recognizing a pledge is being satisfied.

• No goods or services (i.e., tables, tickets to events, membership etc.) may benefit the advisors or their family members.

• Grants may not be earmarked or made for an individual. • All grants are sent by check or electronic payment directly to the organization with a notification letter listing your fund name and mailing address unless you choose anonymity.

Active Grant Making The Community Foundation of Central Wisconsin anticipates fund advisors will maintain an active role in their funds. A fund is considered active when there is regular communication between a fund advisor and the Foundation regarding grant recommendations and longterm philanthropic goals. A general recommendation is that a grant is made at least once every three years. The Foundation team is here to help you document and meet your charitable goals. If the Foundation’s attempts to contact you are unsuccessful for more than three years, the Board of Directors will utilize its variance power or put your succession plan into place to ensure your fund does not become obsolete.

Serving Portage and Waushara Counties since 1982.

Consider joining the Heinz Living Legacy Circle The Heinz Living Legacy Circle honors the caring individuals and families who have made formal plans to leave a gift from their estate to the Foundation to support causes they care about most. The Foundation makes it easy to leave a legacy through an estate gift or planned gift. Our team is available to discuss options. All such consultations are confidential.

Login at to view and manage your fund.

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