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Frequently Asked Questions about Donor -Advised
Funds
The DCF has established guidelines for donor advised funds, but
remains flexible and willing to work with you to ensure your
charitable intent is carried out.
How do I make distributions from my Donor-Advised fund?
I'm not sure which organizations I want to support. Can the DCF
help?
May I use my Donor-Advised fund to support organizations outside
Delaware?
What are my investment options?
How is the pay-out rate determined?
May I distribute principal from my fund?
How many generations can act as advisors to my fund?
What will happen to my fund at the end of the term of advisors?
How
do I make distributions from my Donor-Advised fund?
You may recommend a gift from your fund at any time. Simply
submit a Donor Distribution Form indicating the charitable
organization(s) you want to benefit (forms will be provided to you
at the time your fund is established). The DCF will send the check
directly to the charity, including notification that the gift was
made from your fund (unless otherwise instructed). This process
takes about two weeks. We recommend a minimum distribution of $250.
Grants may not be used to pay for memberships, dues or anything that
provides a direct benefit to you or another advisor to the fund..
I'm not sure which organizations I want to support. Can the DCF
help?
Absolutely. The DCF knows the community – we have considerable
expertise concerning charitable organizations and causes in
Delaware. We want to make certain your charitable dollars have the
greatest possible impact and welcome the opportunity to help you
identify meaningful grantmaking opportunities.
May I use my Donor-Advised fund to support organizations outside
Delaware?
Yes. We are happy to facilitate the implementation of your
philanthropic goals in other communities. The focus of the DCF's own
grantmaking is Delaware.
What are
my investment options?
The DCF employs a number of top-flight money managers. Details
regarding the investment managers and past performance are
available. DCF funds are co-mingled for investment purposes, and we
recommend a 60/40 distribution between equities and fixed income
investments. However, we can accommodate different asset allocations
or investment objectives.
How
is the pay-out rate determined?
Most donors use a 5% pay-out rate. The DCF recommends 4% to 6%
to allow the fund to grow over time.
May I distribute
principal from my fund?
Yes. However, we encourage you to build the fund to a level that
will eventually provide a permanent source of charitable support.
How
many generations can act as advisors to my fund?
It is our experience that donor-advised funds function best for two
generations. We suggest a fund minimum of $500,000 to include a
third generation.
What will happen to my fund at the end of the term of advisors?
The Delaware Community Foundation will ensure it is utilized to
address our community's most critical needs and/or specific areas of
interest to you.
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