GBU Foundation Donor Advised Fund (DAF) Guidelines DISTRICTS ONLY
GBU Districts may establish Donor-Advised Funds (DAFs) at the GBU Foundation.
Overview
Definition
For purposes of the GBU Foundation, a donor-advised fund (DAF) is a named, restricted charitable fund held and managed by the GBU Foundation. The Donor recommends grant payments, which the GBU Foundation reviews and approves before making distributions.
Terms related to Gifts
Irrevocable Gift
All gifts to the DAF are irrevocable, and Donors relinquish any right, title, or control over the gift once it is contributed. The Donor may not amend, revoke or terminate the gift agreement.
Additional Gifts
The Donor can increase the Fund through additional gifts and any individual, corporation, foundation, trust, estate or other legal entity may also add funds.
Exclusive Property
The Fund, including all income and investment gains or losses, is the sole property of the GBU Foundation and will be managed according to its governing policies. It is not held in a trustee capacity and will be administered per the Foundation’s governing documents.
Investment
• Funds are entered separately on the books and records of the GBU Foundation as the [Name] Fund.
• Funds are pooled with all other funds for investment purposes with PNC Institutional Asset Management.
• Investment income will be credited to all funds in a pro -rated allocation.
• Donors will receive quarterly fund statements.
No Fees
The GBU Foundation will cover all administrative, legal, financial and investment expenses.
Grant Process
Grant Recommendation
The District must submit a completed grant recommendation form, which includes:
• Recipient’s name and contact details
• Grant amount and source fund
• Any relevant notes or designations
Grants may be recommended at any time.
Pending the availability of funds, there is no limit to the number or monetary amount of recommended grants.
Approval and Payment
The GBU Foundation will review each recommendation for compliance with eligibility guidelines and fund availability before approval.
After approval, the GBU Foundation will make a check payment.
Eligibility Guidelines
Eligible Grants
Grants may be made to the following entities:
• 501(c)3 nonprofits
Additionally, the DAF may be used to:
• Sponsor an organization or event – provided that the donor receives no goods or services, such as tickets, food, beverage, clothing, or other amenities, tangible or intangible.
• Purchase equipment – provided the equipment is used for a charitable purpose, e.g. for a police or fire department or community playground
• Contribute to scholarship funds
o Grants may be made to organizations or funds that award scholarships, including funds that the donor has established at the GBU Foundation or other organizations, but the donor cannot recommend a scholarship to a specific individual
o The donor is not eligible to participate in the selection of the scholarship recipient. That determination must be made by a review committee.
GBU Foundation Donor Advised Fund (DAF) Guidelines DISTRICTS ONLY
o GBU Foundation donors who create DAFs and wish to award scholarships are encouraged to create a named scholarship fund and, depending on the size, establish a permanent/endowed fund with the minimum required gift amount or make DAF grants to fund the scholarship fund on an ongoing basis.
Ineligible Grants
• Individuals
o Grants may be made to programs that benefit groups of individuals, such as organizations that provide emergency services or financial support to individuals, but the donor cannot recommend a grant to a specific individual
• Political campaigns
• Lobbying or attempts to influence legislation or governmental policies
• Grants that undertake any activities for a purpose other than described in the distribution request
• Foreign charities, except those which have an IRS determination letter.
• Private non- operating foundations
• For-profit organizations
• Any other grant that is prohibited by law.
GBU Foundation Modification
The GBU Foundation reserves the right to collaborate with the District to modify fund distribution restrictions if required to align with legal requirements or the Foundation’s charitable mission.
Donor Advised Fund - Grant Recommendation Form
As an Advisor(s) to the fund noted above, I(we) recommend that the GBU Foundation consider the following grant(s) to the nonprofit organization(s) for the purpose(s) described below.
Payable To
(Organization name, address, contact, phone, email)
Purpose (i.e. operations, capital campaign, program name)
Grant Amount Office Use Only
I understand that this is a recommendation only, and that the Foundation has the sole discretion for grants made from the Fund. I attest that the recommendation above does not represent payment of a pledge or other personal financial obligations on behalf of the fund representative(s), family members or businesses they control and that no goods or services, such as tickets, food, beverage, clothing, or other amenities, tangible or intangible, were received by any individual or entities connected with the Fund (described above.)
Signature
Grant payments are processed every two weeks, usually the 2 nd and 4th week of the month. Grants paid from your fund are listed on your quarterly statement.
Submit completed forms to: gbufoundation@gbu.org or GBU Foundation | 4254 Saw Mill Run Blvd | Pittsburgh, PA 15227-3394
Questions, please contact gbufoundation@gbu.org or the Foundation Team at 800-765-4428.