Donor Advised Funds Allow:
Donors to contribute funds and other property
You receive a deduction at the time of gifting up to 60% of your Adjusted Gross Income
Once held by ECF you can disburse those funds to recognized US 501(c)(3) organized “public charities”
Additionally, you can invest those funds underneath our umbrella tax free
Sponsor to set up charitable initiatives underneath our 501(c)(3) umbrella
Raise charitable funds through soliciting private foundations, digital platforms, online donations, individuals, etc.
Employees, independent contractors, etc.
Operate charitable programs
As a Fiscal Sponsor, we take the pain and time out of starting a new 501(c)(3) entity – starting your own can take up to 18 months to be approved. We get you up and running in less than a week – this is the power of Fiscal Sponsorship.
For those who have done work in the non-profit space before, or have experience with various non-profit structures, this chart should help to clarify how we differ (and outshine) a few other popular structures:
|Features||Donor Advised Fund (DAF)||Private Foundation (PF)||Us|
|Donor Grant Restrictions||With DAF’s, donors cannot place restrictions on their grantees||Yes||Yes|
|Grantee Recipients||Only may give to US 501(c)(3) approved charities||More flexibility. With expenditure responsibility, can give scholarships to individuals and foreign organizations. Can make program related investments and loans. DAF’s cannot||Most flexibility. You can do above and you can create partnerships and also raise monies for recipients. Recipients can be those in need and you can create endowments|
|Anonymity in Giving||Yes||No, you must file Form 990 PF and this is a “Public document”||Because we file the 990, your identity may remain anonymous if you so choose|
|Management of Charitable Funds||Typically, DAF’s are subject to the Fund’s money managers||Totally open platform||Totally open platform|
|Start up time||Online and quickly||3-10 months||Online and quickly|
|Receipt of Non-cash Assets||Limited. Private Stock, etc.||Open in terms of non-cash accepts||Flexible|
|Minimum Investment||$5,000.00 or so usually||$3,000,000.00 or more to open recommended||Varies|
|Ease of Operation||Easy||You must create and infrastructure, file returns, etc.||Easy. Operated for you|
|Self Dealing Issues||Very restrictive use of funds||Very strict and steep penalties for failure to comply with special self-dealing rules||The most liberal of the three. Only subject to Section 4958, standard self-dealing restrictions|
If we manage funds through our financial advisor, fees vary. If you have an independent advisor, fees vary.
If you would like to contribute non-cash proceeds, we can discuss.