Donor-Advised Funds allow the donor to make recommendations as to how the income from the fund is spent. This fund is appropriate for donors who would like to take advantage of charitable giving, but would like to be able to make suggestions on which charities should be supported. The Distribution Committee welcomes the donor’s input, but is obligated to follow the IRS guidelines. The Foundation expects its grant distributions from donor-advised funds for the year to equal or exceed 5% of its average net assets on a fiscal year rolling basis over 4 years. If the donor-advised fund is identified as not meeting the required 5% pay out, and does not do so after being notified, the Foundation is authorized to transfer up to 5% of assets from the donor-advised fund to the charity selected by the Foundation. The Distribution Committee must make the final decision concerning the distribution of funds. The Foundation’s Board of Directors has final approval of these recommendations.
The Foundation incurs expenses involved in the management and operation of community funds. To offset these costs, an administrative fee of ¼% per quarter of the total fund balance will be assessed against all funds. Also, financial management fees will be assessed to all funds based on the cost incurred by the Foundation. Fees charged will be calculated quarterly. Davenport Asset Management has been selected to manage the Foundation’s financial investments. The Foundation receives monthly reports from Davenport Asset Management. The Davenport Asset Management team meets with the Board semi-annually to personally review the investment portfolio.
With respect to all distributions, the Foundation will conduct a thorough review of prospective recipient organizations, and reviews outcome reports at a project’s completion. It is the responsibility of the Foundation to investigate allegations of improper use of grant funds for the private benefit of any individual and to see that grants are used by the grantees exclusively in the furtherance of charitable purposes.
A minimum gift of $25,000 is required to establish a named fund. Any established fund may be added to, but there are minimum gift requirements to establish a named fund.