How Does It Work?
Opening your fund
Opening a donor-advised fund is simple and straightforward, and there are no set-up or legal fees involved. You can open a fund with a first contribution of any size, for which you may take an immediate tax deduction even if you intend to recommend grant distributions at a later date.
Contributing assets to your fund
You can contribute to your donor-advised fund whenever it suits you, and claim an income tax deduction in the year of the contribution. KBFUS can receive gifts by check, credit card or wire transfer, and also gifts of stocks, bonds, mutual funds, real estate or other types of property. You can also contribute to your donor-advised fund through a planned gift, such as gifts of a life insurance policy or retirement plan assets. Corporations can contribute to their fund from various sources, such as a corporate giving program or a corporate foundation. Individuals can contribute from an existing giving vehicle such as a private foundation or a fund held at a community foundation or national fund. They can invite friends and relatives to contribute as well.
Investing assets to generate income (optional)
Donors may choose to establish an ‘endowed’ donor-advised fund at KBFUS. If that is your case, the assets of your fund will be invested under the guidance of our Investment Committee, allowing them to earn income and grow tax-free over time. When establishing your fund, you can select one of our four investment pools for the allocation of your fund’s assets, or you may recommend that their management be entrusted to an investment advisor of your choice.
Making a grant distribution to support a favorite organization overseas
You can make recommendations for grant distributions from your donor-advised fund at any time. KBFUS will contact the recommended grantee to request information on their structure, funding and activities. Our due diligence process helps ensure that grant monies are used for legitimate charitable purposes. The grant will be formally approved by our Board of Directors, and following such approval, a grant agreement is signed with the grantee, specifying the intended use of the grant moneys and requesting a brief report after a one-year period. Upon receipt of the signed agreement, KBFUS proceeds with the payment to the grantee, usually by wire transfer. If you don’t have a favorite organization in mind, we can help you identify premier nonprofit initiatives in the country, region or field of your interest.
Please contact us to open your donor-advised fund at KBFUS. It is a simple and straightforward process.
For donor-advised funds without invested assets:
Each grant distributed from the Fund will be subject to a management fee, calculated as follows: 5% of the first $100,000 of each grant; 2% of the next $300,000; 1% of the next $300,000; and 0.5% of the amount of each grant in excess of $700,000.
For donor-advised funds with invested assets:
The Fund will be subject to an investment fee of 70 basis points per year (that is, 0.7% of the Fund’s invested assets – 0.175% assessed quarterly). No fees will be charged on grants distributed from the Fund.
This fee structure is all inclusive – there are no other legal, due diligence or maintenance fees involved.
Return to Donor-Advised Funds
Any further questions? Please contact us at [email protected] or (212) 713-7660.
|A donor-advised fund at KBFUS – One-page presentation|
|A donor-advised fund at KBFUS – A flexible tool to make recurring donations overseas|
|The advised gift fund – One-time contribution to a favorite nonprofit overseas|
|KBFUS Investment Policy Statement|