Getting Started: 5 Questions
The answers to the questions below will help us get your donor-advised fund started.
1. What is the name of the fund?
You have great latitude in the name for your fund as long as it does not duplicate the name of a fund we already hold. Also, please avoid the words "foundation" or "trust," which imply a legal entity, rather than a component fund. Finally, your fund name can be anonymous (e.g., Anonymous G Fund).
2. What is the type of the fund (non-endowed vs. endowed)?
A non-endowed fund is one in which you can grant out the entire balance of the fund at any time. An endowed fund is one where you have chosen to preserve its corpus by limiting your annual distributions (usually to 6% annually). The fee for an endowed fund is lower than that for a non-endowed fund, as there is less activity in an endowed fund.
3. Who are the advisory committee members and who is the advisory committee chair?
Advisory committees may be as small or as large as desired, and committees determine their own governance structure. Original advisors may add successors, and successor advisors may add successors, as long as these successors are "lives in being." You may add to or remove from the advisory committee at any time.
4. What is the term of the fund?
Most donor-advised funds terminate at some point, either after the lifetimes of original donors or advisory committee members, or upon some triggering event (e.g., after there is a period of no grantmaking activity for two years). Since we honor donor intent, we ask that fundholders decide from several options for final distributions. Options range from keeping the fund intact at The Denver Foundation, to granting all remaining funds to charities specified by the donors. It is easy to amend your fund's "term" through a simple form.
5. How would you recommend the fund be invested?
The Denver Foundation offers three options for fundholders:
- A highly-diversified investment pool with over 40 managers
- A sustainable and responsible pool with eight funds in five asset classes
- An advisor-managed option for endowed funds of at least $200,000
Call the Philanthropic Services Group at 303.300.1790.