Answer: Donor Advised funds may be utilized to award grants as recommended by the fund advisor, as part of a competitive grant process, and/or other strategic activities. The Foundation must adhere to IRS regulations regarding recommendations from advised fund donors per the Pension Protection Act of 2006. IRS rules stipulate that a donor cannot claim a tax-deductible contribution and at the same time retain future control over the contribution. However, the law expressly recognizes the right of living donors to make grant recommendations from time to time. In all cases, the Board of Directors of the Foundation retains the right to final determination of the use of funds.
Minimum establishing gift: $1,000 Minimum fund balance: $25,000
Time horizon: Five years or legacy gift commitment of equal or greater value
If the fund does not reach the $25,000 minimum, the fund balance will be transferred to an existing endowment fund.