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Donor Advised Fund
A donor advised fund is an attractive alternative to a private foundation; it allows you to make a charitable gift through the Lincoln Community Foundation and remain actively involved in recommending how and where grant monies from the gift are distributed without worrying about the administrative work.
Donor advised funds are convenient, flexible tools for individuals, families, businesses, or groups that want to be personally involved in suggesting grant awards. If you have a range of community interests, you may find that a donor advised fund is an ideal vehicle for fulfilling your charitable wishes. Donor advised funds are typically less costly and easier to administer than other forms of philanthropic giving (such as family or corporate foundations). This type of fund also provides the opportunity to name future advisors.
Your gift can be combined with others to increase its impact, and you can add to your fund at any time, receiving tax benefits with each new gift. You can establish a fund today and make grant recommendations now or in the future. And if you endow your gift, it becomes a permanent funding source for decades upon decades of future grants.
Individual Donor
A personal connection.
When Fred retired, he wanted a way to give more to his community. He has lived in the community for his whole life, and now that he has more time and resources, he can give to a number of causes and organizations that are very special to him. Fred and his financial advisor met with the Lincoln Community Foundation to discuss ways Fred might increase the impact of his giving and gain maximum tax advantage. Fred chose to establish a donor advised fund in his family's name. He now recommends grants to the Foundation in the areas he cares about most. Two years ago, based on his recommendations, he was able to give to his church, the pet shelter and the food bank. Last year he gave to a summer camp and his alma mater. The donor advised fund is a great way for him to stay involved and make a difference in the community he loves.
Family Donor
Sharing family values.
Philanthropy has always been a priority to Nancy and Leon’s family. They have made it a family tradition and activity to recommend their favorite causes as potential recipients for their charitable donations. They especially enjoy the way it brings their family together, but find that distributing the checks and collecting the receipts to be a hassle. After learning of the donor advised fund available at the Lincoln Community Foundation, Nancy and Leon decided to establish one in their family's name. The fund allows them to recommend recipients to the Foundation and eliminates the need for them to distribute checks and collect receipts because the Foundation does all of the work for them. The donor advised fund is a perfect solution for their situation.
Opportunities Year-end tax planning Strategic giving Closely held stock Simple alternative to private foundations Sale of a business Preserving an estate Year-end tax planning: Just earned a large bonus, but no time to decide on the most deserving charities? Establish a donor advised fund for an immediate tax deduction, and stay involved in your gift for years to come.
Simple alternative to private foundations: Thinking about establishing a private foundation, but looking for a better, simpler way? Or, frustrated with the ongoing management of your private foundation? Establish a donor advised fund (or Supporting Organization) and stay personally involved with the distribution of gift dollars. Use the Lincoln Community Foundation’s grant expertise for community knowledge and greater impact.
Strategic giving: Passionate about meeting a specific community need and want to make a meaningful gift? The Lincoln Community Foundation uses expertise in local needs to recommend ways to make the greatest impact.
Sale of a business: Own highly appreciated stock in a company that is about to be acquired? Structure a charitable gift of stock before the company is sold to reduce capital gains and increase charitable deductions. Establish a donor advised fund so a once-in-a-lifetime event can help you do good, forever.
Closely held stock: Personal net worth tied up in a closely held company, but want to give back? Donate a portion of company stock to the Lincoln Community Foundation; company may buy it back for fair market value. Establish a donor advised fund or planned gift; you are eligible for a tax deduction at the fair market value of appreciated stock (less any planned gift value).
Preserving an estate: Estate planning identifies significant taxes going to the IRS, but want to keep tax dollars local? Reduce taxable estate through charitable bequest or other planned gift. Create personal legacy in community that stays true to your charitable intent forever.
There is so much more we’d like you to know. For more information and ideas on ways to integrate charitable giving with a financial plan, ask your financial advisor or contact the Lincoln Community Foundation at (402) 474-2345 or lcf@lcf.org. We will be happy to work with you and/or your advisor to determine the most effective ways to accomplish your charitable goals.
Return to Charitable Vehicles
2003 Council on Foundations and Community Foundations of America
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