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Grantmaking from Donor Advised Funds

Donor Advised Fund - A personal approach to giving

A donor advised fund at the Sumter Sunshine Community Foundation is easy to establish and enables donors to simplify and consolidate their charitable giving while remaining actively involved in recommending grants to nonprofit organizations. Donor advised funds also provide an excellent way to build a tradition of charitable giving in a family.  Many donors choose to involve their children or grandchildren as advisors during their lifetime, or to involve them as successor advisors after they are no longer actively involved with the fund.

Donors may recommend grants to any 501(c)(3) public charity in the United States.  Our foundation performs due diligence to make sure grants are given to organizations that meet current 501(c)(3) IRS requirements.  Our Executive Board of Directors is legally responsible for approving all grants and ensuring that grants are administered in accordance with IRS regulations.  We take care of all the administrative details, so that our donors may focus on charitable giving!

Grants feature the fund name on the check, so the charity clearly understands that the grant was made possible through the recommendation of the donor, unless the donor wishes that the grant be made anonymously.

 

Please note that donor advised funds cannot be used for the following purposes: 

  • To fulfill a donor's or any related party's personal irrevocable or legally binding pledge or other financial obligation made to a nonprofit, religious or educational institution;
  • To support lobbying or political campaign activities;
  • To purchase raffle tickets;
  • To pay for a membership, dues, event tickets, dinner, preferred seating or parking, or any other activity that provides a benefit to the donor or any related party;
  • To pay for personal expenses incurred by a relative, including tuition;
  • To provide any other substantial private benefit to any individual, or to an entity for the benefit of a specified individual.
     


Key benefits to remember:

  • Create a lasting gift in your name or in the name of a loved one
  • Establish a fund which acts like a private foundation without the administrative work and expense
  • Participate in the grantmaking process
  • Access the expertise of the Community Foundation's Trustees and professional staff
  • Add to your fund at any time
  • Receive an immediate tax deduction at the time the gift is made to the foundation

 

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