What is the minimum amount needed to establish a fund?
You may open a fund with a gift of $5,000 or more.

What is the minimum balance I must maintain in a fund?
You must maintain a fund balance of at least $500.

What agencies are eligible to receive grants from a donor-advised fund?
Any United States-based agency that is a recognized 501(c)(3) of the Internal Revenue Code can receive a grant from a donor-advised fund at the Community Foundation. Grants cannot be awarded to individuals. Donors also may not receive tangible benefits from a grant. These include items such as meals, concert tickets or museum membership benefits.

May I recommend a grant to pay a pledge I have made to an organization?
No.  When you make a contribution to a donor-advised fund at the Community Foundation you are entitled to take the full amount as a tax deduction.  This is because you have received nothing (in excess of purely incidental benefits) in return for your contribution.  If the Community Foundation satisfies your pledge, you will be receiving something in return for your contribution – release of an obligation.  Therefore, a donor may not use grants from a donor-advised fund to satisfy a previously committed personal pledge made to a charity.  However, you may place a “pledge sticker” on a signed pledge card indicating your intent to request a grant for a specific amount from your named donor-advised fund.

What is the minimum grant I may recommend?
Advisors may recommend grants of $100 or more.

How often can I recommend a grant from the fund?
You may recommend a grant at any time. Grants are paid twice monthly on the 15th and the 30th. In order to be approved for those cycles, advisors must make recommendations by the 10th and the 24th of the month. Advisors will receive written acknowledgement of all grants after they are paid.

What fee is charged for each grant I recommend?
The Community Foundation encourages donors to support the charities they care about most. No fees are charged for recommending grants.

How often can I add to a fund?
You may add to the fund at any time with a gift of any amount.

Can I give assets other than cash to a fund?
Yes. You may give stock, mutual fund shares, retirement fund assets, real estate or other tangible property.  Gifts of stock, both publicly traded and closely held, have become more popular in recent years as donors have used their market gains to benefit the community.

Can I remain anonymous when establishing a fund or recommending grants?
Yes. Advisors may request that grants be awarded anonymously. Some donors prefer to use a pseudonym when naming funds.

How many advisors can I name for the fund?
You are not limited on the number of advisors to a fund. However, we strongly encourage that you designate one advisor who is authorized to complete grant recommendation forms.

What are the administrative expenses for a donor-advised fund?Administrative fees vary with account balances. For fund balances of up to $1 million, the fee is charged quarterly at an annual rate of 1.25 percent. For balances between $1 million and $3 million, the fee is 1 percent. For balances above $3 million, the fee is .75 percent.  The minimum administrative fee is $125 annually.

What are the investment fees for a donor-advised fund?
The fees vary with the type of investment. Fees for investment managers are deducted before earnings are allocated to individual funds. Fees for the Community Foundation's pooled funds range from approximately .16 percent to 1 percent of assets. 

How often will I receive a statement?
Statements are mailed quarterly, usually between 4 to 6 weeks after the end of a calendar quarter.

What happens to the fund after my death?
Donors have several options for the posthumous management of a fund.
-- Some donors name successor advisors (often children or grandchildren) to recommend grants from the fund. If a donor dies before a successor advisor reaches 18 years of age, the Community Foundation will suspend grant activity from the fund until a successor advisor is 18 years old.
-- Others choose to create endowment funds that provide a permanent source of annual gifts for recommended charities.
-- Another option is to name the Community Foundation Board of Governors as advisors or grant all or part of the fund to the Foundation’s endowment.

What happens to the fund if I grant power of attorney to someone else?
The Community Foundation will only honor a power of attorney if the individual is listed as a successor advisor to the fund. 

What are the tax advantages of establishing a fund at the Community Foundation of Greater Memphis?
Donors who contribute stock and other appreciated assets are eligible for tax deductions, and they avoid capital gains tax. Also, there are many ways a charitable fund may help a donor reduce estate taxes, preserve retirement assets for family members and provide gifts for charity. The Community Foundation's professional staff works closely with attorneys, accountants and other advisors to help donors make the best choices for their families. 

What are the advantages of establishing a fund at the Community Foundation compared to establishing a private foundation?
Because the Community Foundation is a public charity, there are fewer Internal Revenue restrictions for gifts and grants than for a private foundation. Generally, donors receive a higher tax deduction for contributions. Additionally, donor-advised funds are not subject to excise taxes, and they have no payout requirement. 

An alternative to creating a donor-advised fund is establishing a supporting organization of the Community Foundation. A supporting organization offers the advantages of a donor-advised fund, but it is governed more like a private foundation. For more information on using the Community Foundation as an alternative to a private foundation, contact Patti Smith, Vice President, at (901) 722-0056.