Your clients have separate accounts for money they want to use for specific purposes: checking accounts, 401k retirement accounts, and 529 college savings accounts. What about their charitable giving?
A charitable giving account, also known as a Donor Advised Fund, is an attractive alternative to a private foundation, offering more flexibility, confidentiality, and maximum tax benefits. In addition, you or your clients' financial advisor can manage the assets in the account through our Financial Advisor Program.
A Donor Advised Fund may be opened with as little as $10,000. Funds with at least $25,000 of assets are eligible to participate in the Financial Advisor Program.
Annual administrative fees for the management of a Donor Advised Fund are 1.0% of the value of the assets or $500, whichever is greater. These fees are reduced in a tiered manner as assets exceed $1 million. The pro rata fees are assessed to the fund on a monthly basis, and the monthly fee equals one-twelfth of the annual fee, based on the average fair market value of fund assets for the month. If there are no assets in the fund for the entire month, there is no fee.
Donor Advised Funds are a simple way to accomplish many of the same goals as a Private Foundation, but with many advantages in terms of cost, time, and ease of administration. Click here
to see a comparison of Private Foundations and Donor Advised Funds.
If you have clients who want to name their fund at the Community Foundation as a beneficiary of their will or trust, life insurance policy, or retirement plan account, the following may be helpful in completing their estate planning documents or beneficiary designation forms.
After describing what your clients are leaving to the fund (i.e., a percentage of the estate/trust/account or a specific dollar amount), simply say it will pass "to the Community Foundation of Huntsville/Madison County for the [name of your clients’ fund]."
Our staff will be happy to work with you and your clients to establish a fund during your clients' lifetime to receive assets at their death. By working together ahead of time, we can ensure your clients’ fund will carry out their charitable goals beyond their lifetime.
As a reminder, the Community Foundation of Huntsville/Madison County is a 501(c)(3) public charity. Our tax identification number (EIN) is 26-3750673.
Yes. Our staff and team are available to assist with the donation of complex assets. These may include assets like appreciated stock (publicly-traded or private issue), real estate, artwork, vehicles, life insurance policies, or retirement plans. Any gifts of complete assets must be approved in advance by the Community Foundation Board of Directors.