How often can I make a grant recommendation from my fund?

Fund advisors can make grant recommendations from their fund as often as they like.  Some fund advisors choose to recommend grants weekly or quarterly, others make grants on an annual basis.

Who can make grant recommendations from my fund?

Only fund advisors listed on the original Fund Agreement are permitted to make grant recommendations from a fund.  If you would like to add additional fund advisors, for example, children or grandchildren, please let us know in writing.

I understand that I can make grants from my fund to charitable organizations that are recognized by the IRS as having nonprofit 501(c)(3) status. What exactly is 501(c)(3) status?

According to the IRS, an organization described as 501(c)(3) is tax-exempt and eligible to receive tax-deductible contributions.  It must be organized and operated exclusively for one or more charitable purposes including:  relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening the burdens of government; lessening of neighborhood tensions; elimination of prejudice and discrimination; defense of human and civil rights secured by law; and combating community deterioration and juvenile delinquency.  It may not engage in lobbying or other attempts to influence legislation as a substantial part of its activities and it may not be operated to benefit private interests. 

Churches, schools, hospitals, and governmental units with  509(a)(1) status and public safety groups with 509(a)(4) status are also eligible for grants from donor advised funds since both of these designations are sub-categories of 501(c)(3) status.

Is it possible to recommend a grant from my fund to an organization that has not yet obtained 501(c)(3) status?

This is not encouraged, but it is possible if the project that you wish to donate to has a fiscal sponsor who is classified as a nonprofit 501(c)(3) organization.  A grant can be issued to the fiscal sponsor if the fiscal sponsor understands that they, legally, have financial responsibility for the use of the funds. A letter from fiscal sponsor’s Executive Director is usually required.

May I recommend a grant to an individual?

No.  As a Community Foundation, The Denver Foundation may make distributions only to qualifying nonprofit organizations.  Scholarships and grants made as part of achievement award programs are sometimes exceptions.  Grants of this sort require a formal application and selection process.  For information about scholarship or achievement award grants, please contact Karen Bellina at extension 141.

Do the guidelines for The Denver Foundation’s Community Grants Program apply to grants from my fund?

No. The guidelines for the Community Grants Program differ from guidelines for grants from donor advised funds in many ways. First, the Community Grants program has a set grant application process through which nonprofits submit proposals for funding. While some donor advisors have chosen to solicit grant proposals, the majority of donor advised funds do not accept unsolicited proposals and have no application process. Second, the Community Grants Program is restricted to funding organizations that operate within the seven-county Metro Denver area.  Donor advised funds can recommend grants to nonprofit organizations located anywhere in Colorado, and across the country.  Third, the Community Grants Program does not provide grants to religious organizations, while donor advisors can, and frequently do, grant to churches, synagogues, and other religious institutions.  Your donor advised fund is flexible, based on your interests and charitable goals.

Simply put, the majority of the guidelines that apply to the Foundation’s Community Grants Program do not apply to grants recommended by donor advisors. Of course, donor advisors are always welcome to fund organizations that have been thoroughly evaluated by the Foundation’s staff and been approved for funding thorough the Community Grants Program.

Can I specify exactly what I want my grant to be used for when I recommend a grant for a particular organization?

You can be as specific as you like.  Simply detail your request in the ‘Purpose’ section of the Grant Recommendation Form and we will include your restrictions in the letter that is sent to the organization with their grant check.

What are some common types of grants?

Here is a list of the most common types of grants made to nonprofit organizations:

• General Operating Support – provides for the day-to-day costs of running the nonprofit organization.
• Project or Program – supports a specific activity or program.
• Endowment – increases the organization’s endowment fund.
• Capital – provides support for the purchase of property, the construction of a facility, the remodeling/expansion of a facility, or the purchase of equipment.
• Unrestricted – allows the nonprofit to use the dollars to support the organization where most needed.
• Seed – helps to jump start a new organization, a new project, or launch a capital campaign.
• Challenge or Matching – helps a nonprofit leverage additional dollars through a fundraising campaign.

If my fund is not designated as an Anonymous Fund, can I make a grant to a particular group anonymously?

You always have a choice about whether or not you would like to be identified as the donor of a particular grant.  To give anonymously, check the anonymous box on the grant recommendation form and we will remove all references to your fund in the information that the grantee receives.

I serve on the board of an organization. May I recommend a grant to this organization from my Donor Advised Fund?

Yes, as long as you receive no personal benefit from the grant.

Will I receive a report from each organization as to how my grant was used?

Normally, The Denver Foundation does not require organizations to submit a final report unless they received a grant of $25,000 or more.   If you would like to receive a report for a particular grant, please check the ‘Final Report Requested’ box on the Grant Recommendation Form and we will include this as a requirement of the grant in the letter that is sent to the grantee.

I am interested in a specific issue.  How can I find out about organizations that are effectively addressing this issue?

The Denver Foundation has a professional staff with expertise in local nonprofit organizations.  We would be happy to recommend organizations that we know are doing excellent work in the community.  We can provide you with detailed descriptions and evaluations of programs along with copies of an organization’s financial records. We are happy to research the answers to any questions that you might have and arrange site visits.  Site visits are an excellent way to see first hand what an organization is all about and to create a personal connection.

Why can’t I make a pledge payment with a grant from my fund?

IRS regulations require that all final decisions about distributions from Donor Advised Funds be made by the Foundation’s Board. The word pledge implies a legal obligation on the part of the Foundation to satisfy a debt.  If you make a pledge it suggests that part of your donation to the Foundation was restricted to a certain charity outside of the jurisdiction of the Board. 

I would like to give $5,000 a year for the next 3 years to a particular agency and I would like them to know that they can count on this support. How can I do this?

You can make a multi-year grant recommendation from your fund to this agency. This scenario is different from a pledge because The Denver Foundation will be approving the grant at the outset. Once approved, this grant will be considered a commitment to the agency (and listed as a liability on your fund statement). When you recommend the grant, please indicate both the amount and schedule of distribution.  Each year the next installment of the grant will be sent to the agency automatically on the dates that you have determined.

May I pay for tickets to a benefit dinner or golf tournament from my donor advised fund?

You may pay for the cost of the tickets from your donor advised fund, minus the fair market value of what you receive in exchange.

Example One:  Tickets for a charity golf tournament cost $125. Fair market value of a round of golf at the course, a golf cart, and the lunch that will be provided is $75. You could pay $50 of the cost for each ticket you purchase from your fund, and pay the $75 equal to the fair market value of each ticket personally.

Example Two: Tickets to the Halloween Costume Ball are $50. The fair market value of the dinner, entertainment, drinks, and gifts that will be provided is $50. You could not pay for this ticket from your fund since the cost of the ticket is equal to the amount that one would reasonably expect to pay for such an event.

The above examples are true even if all of the expenses for the evening have been donated and the charity will receive 100% of the proceeds. The IRS does not look at the cost of the event to the charity, but rather at the fair market value of the goods, services, or privileges received by the purchaser of the ticket. The organization hosting the event can tell you the fair market value of the ticket.

I would like to sponsor a table at an event, but I won’t be attending. May I pay for this table from my donor advised fund?

Yes, you may pay the entire amount from your fund as long as no one else who is related to you, or selected by you, will be benefiting from the donation by attending the event and sitting at this table.

I have a friend who is seeking funding for a project.  Can she apply to the Denver Foundation?

While your friend could not apply to The Denver Foundation as an individual, if she works for a nonprofit 501(c)(3) organization she may be able to apply to The Denver Foundation through our Community Grants Program.  To qualify, an organization must serve residents in Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas or Jefferson County and help meet a need not adequately being met by existing community resources in one of our funding areas.  For more information about applying for a grant or to request a copy of our grant guidelines, please contact Jim Casey at extension 131.

The Denver Foundation also has a program called Strengthening Neighborhoods that gives small grants to groups that do not have nonprofit status in Original Aurora, Commerce City, and the Denver neighborhoods of Clayton, Elyria Swansea, Globeville, Highland, Northeast Park Hill, Skyland (also known as North City Park), Sunnyside, and Whittier.  For more information about this program please contact Patrick Horvath at extension 109. 

Can I create a legacy?

Yes, and we would be honored to assist you in doing so.  By establishing a Fund at The Denver Foundation during your lifetime, you already have laid the groundwork for creating a permanent legacy to charity.  Most often a lasting legacy involves incorporating charitable giving into your estate plan, and our Advancement Staff is here to assist you and your professional advisors with estate giving activities.

As you create your estate plan, there are many charitable giving options available to you.  Some of your options include creating a Designated Fund (in which you specify a particular organization to receive an annual gift in your name), establishing a Field of Interest Fund (through which you support programs in a particular field, such as education or the arts), or building an unrestricted fund as part of our Community Endowment.  The Advancement Department staff members are available to discuss vehicles such as trusts, gift annuities, bequests, IRAs, and other gift planning options with you when you’re ready.

Can I support the Foundation in other ways?

There are many ways to support The Denver Foundation in addition to establishing a Donor Advised Fund.  For example, we accept unrestricted gifts to our Community Endowment; these gifts help us annually make grants to hundreds of nonprofit organizations operating in the seven-county metro area.  In addition, we accept donations to our Technical Assistance Fund, through which we make grants to local nonprofit organizations, assisting where training, education, or consulting expertise is needed but is not part of the current budget; these grants are typically $3,000 or less and help pay for activities like board planning sessions and strategic planning retreats.

For more information, call the Philanthropic Services Department at 303.300.1790.