INVEST

Donor-Advised Funds

Donor-advised funds (DAF) are an efficient and meaningful vehicle for your philanthropy and provide a great way to be actively involved in deciding what causes and organizations will receive your support. A DAF allows you to give your cash or marketable securities at a time that is advantageous for tax purposes, allowing you to decide what you would like to support at your convenience.

Give

Make an irrevocable contribution of $10,000 to open a non-endowed fund.

Grow

Invest the fund using diversified pools managed by specialized investment managers.

Connect

Work closely with our expert staff and learn with other donors to make greater impact.

Grant

Recommend grants to nonprofits and make a difference.

Advantages

  • Quick and easy set-up with no start-up fees

  • Highest level of tax benefits

  • Complex gifts accepted

  • Anonymity and multi-generational options

  • Unlimited grants to publicly supported charities

  • Secure online account access

  • Access to staff expertise on community issues, needs, and programs

  • Access to fundholder-only events held by the Foundation

  • Opportunities to co-invest with other fundholders on donor led initiatives

Quick Facts

  • Minimum Initial Gift: $10,000

  • Additional Gifts: Any Size

  • Minimum Grant: $250

  • Annual Administration Fee: 1.25% of the first $1 million

  • Time to set up fund: Less than one week

  • Grants can be made to organizations in Cabarrus County, across the state, and throughout the US

  • We offer four investment portfolios designed to grow the fund

Steps to Establishing a Donor-Advised Fund

Establish donor-advised funds (DAF) to receive immediate tax benefits, simplify complex charitable giving, and allow for flexible, long-term philanthropic planning, including the potential to grow assets tax-free and involve future generations in your giving legacy. DAFs allow you to contribute appreciated assets like stock to avoid capital gains taxes and then recommend grants to qualified charities on your own schedule, making charitable giving more efficient and rewarding.

Donor-Advised funds with the Greater Cabarrus Foundation can be established with a minimum gift of $10,000.

Contact the Greater Cabarrus Foundation staff with the following information:

  • Desired name of your fund

  • Initial contribution amount

  • The fund advisors or authorization parties (minimum of donor plus one)

  • Names of charitable interest (if desired). Grants must go to 501c3 organizations.

The Fine Print

  • Minimum Balance: You can make grants (distributions) from the principal and earnings as you wish, as long as you maintain a balance of at least $10,000.

  • Irrevocable Gift: Once a donor contributes assets to a DAF, the gift is irrevocable. The donor cannot reclaim the assets.

  • Fund Ownership: The assets held in a DAF are legally owned and controlled by the Greater Cabarrus Foundation.

  • Donor Advisory Privileges: Donors retain the right to recommend how the funds are invested and distributed. However, IRS regulations dictate these recommendations are non-binding and must be approved by the Greater Cabarrus Foundation.

Key Reasons to Establish a Donor-Advised Fund

  1. Immediate Tax Benefits: Contribute to a DAF and receive an immediate income tax deduction in the year of the contribution, regardless of when you make the actual grants.

  2. Tax-Efficient Asset Donations: You can donate appreciated assets like stocks, mutual funds, or even real estate to your DAF. This allows you to avoid paying capital gains tax on those assets, and the fund can be invested to grow tax-free.

  3. Simplified Giving and Taxes: DAFs centralize your charitable giving, providing one account to manage and one tax receipt to receive for your contributions at tax time, making tax preparation easier.

  4. Flexibility for Future Giving: You can contribute to your DAF when it’s financially advantageous and then take your time to research and decide which charities to support with those funds. You can grant funds immediately or later, on your own schedule.

  5. Legacy Planning and Family Involvement: Name successor advisors to guide grant recommendations, ensuring your family’s continued involvement in your philanthropic vision across generations.

  6. Efficient Handling of Complex Assets: DAFs simplify the process of donating non-traditional assets like privately held business interests, cryptocurrency, or art, which can be difficult for charities to accept directly.

Anonymity

You can choose to make donations to charities from your DAF anonymously, if desired.

Contact Us

We look forward to connecting with you and answering any questions you may have. Send us a message using the form and a member of our team will get in touch with you shortly.