The Delaware Community Foundation Charitable Fund Partners Program creates a value-added partnership between financial advisors and the DCF. The program enables financial advisors to keep a client’s assets under management while making it possible for the client to have a charitable fund at the Foundation. The client and financial advisor benefit from the Foundation’s local expertise, personalized service, community leadership and charitable gift planning and services.
What are the advantages of DCF charitable funds?
A DCF charitable fund is flexible, may have added tax advantages over other forms of giving and helps clients make charitable giving an effective part of their overall financial plan.
The Charitable Fund Partners Program enables individuals and families to establish donor advised funds with the DCF without changing the investment manager. Donor advised funds offer maximum flexibility. The client receives an immediate tax deduction while avoiding capital gains tax on appreciated assets, may add to the fund at anytime and can recommend grants to charities of their choice in Delaware and other states. In addition, as compared to a private foundation, there is no 2% excise tax on net investment income and no 5% annual distribution requirements.
The Delaware Community Foundation helps your clients direct their charitable giving by exercising due diligence in screening the charities they wish to support. Our professional staff can advise on needs in the community that best match their charitable interests. We can provide life income gifts, such as charitable remainder trusts and gift annuities. The DCF provides grantmaking expertise and other support services to help maximize the impact of charitable gifts and develop your client’s strategy for philanthropy over time.
Who can participate in the Program?
Clients who are able to contribute at least $500,000 to establish a charitable fund with the DCF may participate in the Charitable Fund Partners Program. The DCF charges an administrative fee to the account based on assets under management.
Note: The financial advisor firm and the Delaware Community Foundation are separate entities and are not affiliates. A fund established through the Charitable Fund Partners Program will pay an administrative fee to the DCF and an investment management fee to the financial advisory firm in accordance with the published fee schedule. All charitable gifts are irrevocable. After the gift is made, the assets belong to the DCF. The DCF does not provide legal or tax advice. Clients should discuss potential tax benefits with their tax advisor.