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Planned Giving

Planned Giving
March 6, 2024

Donor-advised funds: Recommended reading

byInspiring Philanthropy

The team at the community foundation tracks legislation, legal developments, trends, news, and innovative strategies for all types of charitable giving so that we can keep fund holders and their advisors up to date. 

Recently, donor-advised funds have been the subject of conversation within financial and estate planning circles, as well as a trending topic in philanthropy, related to a set of proposed regulations issued by the IRS late last year. The IRS has scheduled public hearings on the proposed regulations, set for May 6, 2024.

As just one of many types of funds your clients can establish at the community foundation, the donor-advised fund is popular because it allows your client to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction. Then, the client can recommend gifts to favorite charities from the fund to meet community needs as they emerge.

Our team has compiled a list of articles we’d recommend if you’d like to dig deeper into the topic of donor-advised funds. Of course, we welcome your questions and comments, so please reach out anytime!  

  • The Donor Advised Fund Research Collaborative’s recently-released study of donor-advised funds reported that the majority of donor-advised funds make at least one grant per year, and the national average annual “pay-out rate” for all donor-advised funds is 18%. Donor-advised funds are frequently deployed as a tool to help philanthropists who have a wide range of financial capacity, from a little to a lot, organize their charitable giving; consistent with that function, the study found that nearly half of all donor-advised funds carry balances less than $50,000. 
  • The proposed IRS regulations related to donor-advised funds are attracting significant interest in legal circles. To dig into the legal issues, you might check out this article in Financial Advisor because it includes commentary from professionals in the field, as well as this article if you are a Bloomberg subscriber. You can also check out the Council on Foundations’ comments for additional insight. 
  • For a big-picture look at the state of donor-advised funds, including the relevance of recent research and the status and implications of the proposed regulations, check out this article in Wealth Management and this article in Think Advisor. 

While these materials are useful for understanding the current situation, at this point, no one can predict what will happen with the proposed regulations--whether and how they will be revised or when they might become effective, if ever. As always, our team is staying on top of the issues. We’ll keep you posted!

The Legacy Society is composed of individuals who have provided for the Fremont Area Community Foundation as part of their planned gifts. These are special people who are dedicated to a better future for their community for years to come.

There are many different ways to become a member of the Legacy Society. Simply inform the Foundation of the type of gift you have chosen to leave. This may include cash, securities, life insurance, IRA, memorials or other bequests. Gifts may offer tax advantages. We advise consultation with your financial advisor or attorney.

Becoming a member of the FACF Legacy Society has many advantages:

  • Flexibility - Through the Foundation you can serve several charitable interests in one place.
  • Involvement - Donors can choose the level of involvement according to their preferences.
  • Naming Rights - Funds can be named as desired: for an individual, a family, a purpose or an organization.
  • Experience - The Foundation’s Board of Directors and staff are experienced with philanthropy in the Fremont area.
  • Tax Savings - The Fremont Area Community Foundation is a 501(c)(3) organization and qualifies as a public charity under federal tax law.
  • Permanence - The Foundation will continue to respond to community needs of the future as they evolve.

For more information about planned gifts through the Fremont Area Community Foundation, please contact Melissa Diers at 402-721-4252.

March 6, 2024

Donor-advised funds: Recommended reading

byInspiring Philanthropy

The team at the community foundation tracks legislation, legal developments, trends, news, and innovative strategies for all types of charitable giving so that we can keep fund holders and their advisors up to date. 

Recently, donor-advised funds have been the subject of conversation within financial and estate planning circles, as well as a trending topic in philanthropy, related to a set of proposed regulations issued by the IRS late last year. The IRS has scheduled public hearings on the proposed regulations, set for May 6, 2024.

As just one of many types of funds your clients can establish at the community foundation, the donor-advised fund is popular because it allows your client to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction. Then, the client can recommend gifts to favorite charities from the fund to meet community needs as they emerge.

Our team has compiled a list of articles we’d recommend if you’d like to dig deeper into the topic of donor-advised funds. Of course, we welcome your questions and comments, so please reach out anytime!  

  • The Donor Advised Fund Research Collaborative’s recently-released study of donor-advised funds reported that the majority of donor-advised funds make at least one grant per year, and the national average annual “pay-out rate” for all donor-advised funds is 18%. Donor-advised funds are frequently deployed as a tool to help philanthropists who have a wide range of financial capacity, from a little to a lot, organize their charitable giving; consistent with that function, the study found that nearly half of all donor-advised funds carry balances less than $50,000. 
  • The proposed IRS regulations related to donor-advised funds are attracting significant interest in legal circles. To dig into the legal issues, you might check out this article in Financial Advisor because it includes commentary from professionals in the field, as well as this article if you are a Bloomberg subscriber. You can also check out the Council on Foundations’ comments for additional insight. 
  • For a big-picture look at the state of donor-advised funds, including the relevance of recent research and the status and implications of the proposed regulations, check out this article in Wealth Management and this article in Think Advisor. 

While these materials are useful for understanding the current situation, at this point, no one can predict what will happen with the proposed regulations--whether and how they will be revised or when they might become effective, if ever. As always, our team is staying on top of the issues. We’ll keep you posted!