Donor Advised Funds

Haiti Relief

Donor advised funds at the RSF Foundation allow donors to recommend grants to their preferred charitable causes, with approval by Foundation staff and Board of Directors. Grants from donor advised funds can be made anonymously.

Connecting with donor advisors

Our donors learn about nonprofits and community needs through the Direct Connect newsletter. Many donor advisors already know which projects they want to support, but some seek direction. For all, the Foundation staff is your resource for information about charitable organizations and community needs, including site visits and online research.

Benefits to donor advisors

We make the process easy. Once your fund is established, you are able to recommend grants to any qualified nonprofit anywhere in the world. A simple form can be completed and faxed or emailed to our office. In most cases, the grant recommendation will be processed and sent in the same day.

If you are unsure about whether a particular organization will qualify, our staff will perform the due diligence for you. Staff is knowledgeable about most regional organizations and can research those with whom we are not familiar.

Using a donor advised fund for your philanthropy is efficient, eliminating the necessity of itemizing charitable deductions. One donation into your fund is the only itemized deduction you need to make. We facilitate all of the approved grants out of the fund.

You will receive a quarterly Fund Status Report for your fund, listing all transactions year-to-date.

Why establish a Donor Advised Fund with RSFF?

  • Receive tax deductions for contributions to your fund
  • No capital gains taxes on most contributed assets
  • Gain knowledge about charitable organizations and their needs
  • Available to help you identify and attain the results you are seeking
  • Proven track record of successful investment of charitable assets
  • Recommend grants with a two-day turn around
  • Can give anonymously
  • Meet others with similar philanthropic interests

Why choose a Donor Advised Fund at RSFF rather than a “commercial charitable gift fund”?

Is a donor able to: Rancho Santa Fe Foundation Donor Advised Fund Private/Family Foundation Commercial Donor Advised Fund
Create a family legacy Yes Yes Yes
Pass responsibility to next generation Yes – may designate successor advisors Yes Yes
Create a permanent endowment Yes – may be stipulated in fund agreements Yes No – it serves as check writing service
Make charitable grants Yes – to qualified 501(c)(3) organizations Yes Yes
Avoid administrative expenses Administrative fee charged by Foundation Board makes decision regarding overhead Administrative fee charges by fund
Avoid un-solicited grant requests Yes Not necessarily no
Create entity with less than $1 million Yes – minimum fund a amount is $20,000 Yes – but may not make financial sense Yes
Make grants to individuals Yes – through scholarships to college or university Yes – as part of expenditure responsibility No
Realize deduction for FMV* of publicly traded stock Yes Yes Yes
Realize deduction for FMV* of other property Yes – but not personal property unless there is a related use No No
Avoid set-up costs Yes – there is no set-up fee No Yes – they are minimal
Avoid administrative tasks and expense Yes – all administrative back-office handled by Foundation No Yes
Avoid filing tax returns Yes – returns are filed by Foundation No Yes
Avoid minimum 5% annual distribution Yes – there are no minimum annual requirements No Yes
Avoid 2% tax on net investment income Yes No Yes
Partner with others who are resource for philanthropy Yes – Foundation is charitable partner Maybe Possibly
Have maximum control of assets No – but donor may recommend grants Yes No – donor may recommend grants
Have control of investment of assets No – Foundation manages investment of assests Yes Some
Have legal control of assets No Yes No
Maintain interest in family business In very limited situations In very limited situations No
Employ a family member as Executive Director No Yes – if family does not constitute a majority No
Create tradition of family philanthropy Yes Yes Yes

* Fair Market Value