Donor-Advised Funds in The New York Community Trust

DONORADVISED FUNDS IN THE NEW YORK COMMUNITY TRUST

A CLOSER LOOK AT TWO CHARITABLE OPTIONS While a private foundation is the right choice for some, many donors choose us for cost efficiency, ease of use, peace of mind, and our expertise.

Donor-Advised Fund in The Trust

Private Foundation

Start-up Costs

None.

Legal costs.

Start-up Timeline

Immediate.

Typically months.

Staffing

The New York Community Trust provides all grant research, tax reporting, asset management, and record keeping.

Grant research and tax reporting required—also investment management, record keeping, maintenance of board minutes, and grant administration.

Anonymity

Each grant suggestion can be made anonymously or not. Your fund also doesn’t have to bear your name.

No anonymity. On form 990-PF, all grants and amounts are publicly disclosed as well as the names and addresses of all foundation board members.

Tax Reporting

No separate reporting is necessary.

Form 990-PF must be filed annually. Inherent risks with compliance-related rules for board members.

Charitable Tax Deductions

• Annual limit on cash donations: 60% of adjusted gross annual income (AGI).

• Annual limit on securities held more than one year: 30% of AGI. • Long-term capital gain property usually deductible at fair market value.

• Annual limit on cash donations: 30% of adjusted gross annual income (AGI).

• Annual limit on securities held more than one year: 20% of AGI. • Fair market value for long-term publicly traded stock—but cost basis for most other gifts, such as closely held stock and real estate.

Operating Costs and Fees

Modest fees. Please see enclosed fee card for details.

Typically in the range of 2% - 4% per year including excise tax.

Investments

Our staff evaluates and monitors investments, benefiting from the oversight of an expert committee.

Selection and monitoring of investments is often done in-house.

Cost to Terminate None.

May incur substantial costs to comply with legal requirements.

EXPERIENCE THE BENEFITS OF GIVING, THE POWER OF GIVING, THE JOY OF GIVING. You don’t need to be a billionaire to give like one. Create a donoradvised fund in The New York Community Trust or in our Long Island or Westchester divisions.

“The Trust makes grantmaking so easy, and also exposes me to the latest developments in philanthropy.”

– Susan Berresford, donor-advisor at The New York Community Trust, and former president of Ford Foundation

With your fund, you’ll have access to a staff of experts: knowledgeable program officers who are leaders in their fields, investment and tax professionals, and philanthropic advisors.

The New York Community Trust created America’s very first donor-advised fund in 1931.

So, it’s no surprise our donors recommend us.

In fact, our donors are our leading source of referrals—followed by lawyers and financial advisors. They know we live up to our reputation for intelligence, integrity, and service.

WHY THE NEW YORK COMMUNITY TRUST? Giving is personal, and no two donors are the same. We’re built to accommodate a range of assets, timelines, and goals.

Some donors want to use appreciated stock or other assets to help a range of causes. Others want a way to get their family involved in philanthropy or to get advice from our grantmaking professionals. Some know exactly where they want to give and like the ease and convenience of our online giving portal and streamlined tax-reporting. Many donors have two funds—one to spend today and one supported through bequests to continue their generosity in perpetuity.

Private Foundation Considerations: It’s not uncommon for donors to terminate private foundations and transfer the assets to funds in The Trust, freeing up more money for the causes they care about. Others use Trust donor-advised funds to support causes outside the focus of their private foundations. We’re here to work with you.

OUR SERVICES Due Diligence: Each organization you suggest a grant to is vetted by our staff to make sure your money goes to a legitimate nonprofit with sound finances and appropriate governance.

Sound Investment: We work with donors to select investment options that are appropriate for their grantmaking objectives. Our staff is guided by a committee of dedicated investment professionals who volunteer countless hours.

Philanthropic Advice: You’ll have access to experts on the arts, fighting poverty, education, human justice, community development, the environment, health, and other charitable needs. We can advise you about great nonprofits in our area and share the latest information on issues you care about.

Free Events: You can take advantage of our issue briefings, featuring experts from the nonprofit and public sectors. Every year, our donor reception brings us to venues highlighting a different nonprofit.

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DECIDE WHAT TO GIVE

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GO ONLINE OR GIVE US A CALL

We accept a variety of assets, including cash, publicly traded stock, and closely held stock. The minimum amount to start a fund is $5,000.

Our donor team can discuss your options and walk you through the steps to start a fund.

You can reach us at (212) 686-2234 or giving@nyct-cfi.org.

Or visit us online at nycommunitytrust.org/daf

HOW TO START

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MAKE IT A FAMILY AFFAIR Do you want family or friends to recommend grants? Do you want your children or grandchildren to succeed you as advisors? You can do both.

START GIVING Once your fund is created you can suggest grants of $250 or more using our simple and secure online donor portal, MyNYCT.

The New York Community Trust is where caring New Yorkers become informed philanthropists.

LI CF

900 Walt Whitman Rd, #205 Melville, NY 11747 licf.org

909 Third Ave, 22nd Fl New York, NY 10022 nycommunitytrust.org

210 N. Central Ave, #310 Hartsdale, NY 10530 wcf-ny.org