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Donor Advised Fund

THIS GIFT IS FOR YOU IF 


Your path to this gift:
You're considering a lifetime gift in partnership with us > You currently make outright gifts to us and other charities > You want to stay involved in the work of the charities you benefit > You admire the investment management of our endowment fund

At Children's Hospital we are making it easier for you to set up one gift account that makes regular charitable distributions to both us and other charities. Operating somewhat like a private foundation, a Donor Advised Fund (DAF) here gives you the security of skilled financial management and the flexibility and control of guiding your gifts to the charities you are most involved with each year.

Donor Advised Funds operate as part of our endowment, so you have the security of professional management and the opportunity to take advantage of our investment opportunities. The grantmaking procedure is simple, and your DAF offers you complete deductibility of the contributions you make to it plus full documentation on all distributions it makes on your behalf.

In addition, because you can involve your family in deciding which charities your DAF will benefit, you may find that this is a great way to instill and nurture philanthropic values.

How a Donor Advised Fund Works

You make a minimum initial gift of $100,000 to establish a Donor Advised Fund with Children's Hospital. Additional contributions to the fund can be made at any time. The gift becomes our property, and is managed as part of our endowment fund. Each year, a percentage of the value of the DAF, determined by our endowment spending formula, is available for grants to charities. You or your advisor suggests the recipients of grants to be made from this distribution account. We review your suggestions, and, if we approve them, make distributions to the named charities, identifying the grants as coming from your DAF. (Placing this grantmaking authority in our hands ensures that your gift establishing the DAF is complete in the eyes of the IRS and therefore deductible.)

Making Grants

You, or the advisor you have nominated, recommend the recipients of annual grants. A minimum of 50% of the annual grants from your DAF must be distributed to Children's Hospital. Similarly, upon termination of your DAF, 50% of the assets remaining in the fund will be distributed to us. Unlike a private foundation, no annual distributions form the DAF are required.

We will not approve a suggested grant from your DAF that would benefit you or your advisor, go to a private foundation, support political activities, or be used for any purpose which is not wholly charitable or consistent with our mission.

Example

Here is a comparison of the features of one of our DAFs with those of a private foundation and a commercial gift fund:

Features

Donor Advised Fund

Commercial Charitable Gift Fund

Private Foundation

Set-up costs

None

None

Legal and accounting fees

Annual fee

None

Up to 2% annually plus commissions

Record-keeping expenses

Income tax deduction for gifts to fund

50% of AGI for cash gifts 30% of AGI for property gifts

50% of AGI for cash gifts 30% of AGI for property gifts

30% of AGI for cash gifts; 20% of AGI for property gifts

Tax on net investment income

None

None

2%

Minimum Annual Payout

None, but at least 50% of DAF funds must go to Children's Hospital throughout the life of the DAF

Varies

5% of assets

Ability to take advantage of our investment expertise?

Yes

No

No

For More Information:

Email us, complete the personal illustration form, or call us at (206) 987-4977 | Toll Free: (206) 635-1432 so that we can assist you through every step of the process.