Expendable Donor Advised Funds (DAFs) that are held in money market funds or other cash equivalents are charged no professional fees. Interest earned on expendable DAFs is retained to support Lincoln Community Foundation (LCF).
If you have an expendable DAF with a balance of $10,000 or more, you may recommend your DAF be invested. Earnings, gains and losses are credited to your fund. A professional fee of 1.5% or less is charged on all invested funds.
Investment options for DAFs are:
Endowed Donor Advised Funds are invested like all other endowed funds under the oversight of our Finance Committee.
With a minimum of $100,000, you have the additional choice of recommending that your fund be externally managed by a registered investment advisor approved by LCF. We must receive a signed agreement between the registered investment advisor and LCF that confirms LCF’s ownership of your fund and outlines the terms for management of your fund.
DAFs may also recommend mission investments, such as a loan to a local nonprofit organization. These investments are characterized by both a financial return and a targeted social or environmental benefit. All mission investment opportunities must be approved by LCF’s Mission Investment Committee.
The following fee structure applies to all endowed funds and expendable funds that are invested in something other than cash or cash equivalents. Scholarship funds, employee assistance funds and agency funds are subject to the separate fee schedule below. All fees on funds are subject to possible adjustment by LCF in the future.
|Fund Balance||Endowed Funds||Invested DAFs||Scholarship & Employee Assistance Funds||Agency Funds (Endowed or Expendable)|
|From $750,000 to $1,500,000||1.25%||1.25%||1.75%||.75%|
|From 1,500,000 to $10,000,000||1.00%||.75%||1.50%||.40%|
|From $10,000,000 to $15,000,000||.50%||.25%||1.00%||.25%|
Administration of Endowed Funds
A minimum gift of $10,000 is required to create a named endowed fund. Endowed funds are prudently invested in a professionally managed investment pool. Earnings, gains or losses on the pool are credited to the funds invested in the pool. A spendable portion is available to make grants each year. The spendable rate is established by LCF's board of directors and such rate is applied to the fund's average market value over the past 16 quarters to determine the amount available for grants each year. Traditionally, this rate is between 4 and 5 percent.
When LCF receives an estate gift, five percent of the gift is allocated to support LCF operations for managing gifts. This policy applies to all types of estate gifts including bequests, gifts received via beneficiary designations and the remaining balances at the termination of charitable remainder trusts and charitable gift annuities.