Your Gift, Your Way! SIMPLIFY & ENHANCE YOUR PHILANTHROPY DONOR-ADVISED FUND PROGRAM GUIDE
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DONOR-ADVISED FUND PROGRAM GUIDE Your Gift, Your Way! SIMPLIFY & ENHANCE YOUR PHILANTHROPY DONOR-ADVISED FUND PROGRAM GUIDE Table of Contents Welcome ....................................................................................................................................1 About the Episcopal Church Foundation ......................................................................................1 Establishing Your Donor-advised Fund ........................................................................................ 2 Assets to Establish a DAF .................................................................................................... 3 Naming Your DAF ............................................................................................................. 3 Advisors to Your DAF ......................................................................................................... 3 Succession Plan .................................................................................................................. 4 Investment of DAF Assets ........................................................................................................... 4 Investment Allocation ......................................................................................................... 5 DAF Additions .......................................................................................................................... 5 Grant Recommendations ............................................................................................................ 5 Grant Purposes .................................................................................................................. 5 Grants with Benefits to the Primary Advisor ......................................................................... 6 Grant Amounts .................................................................................................................. 6 Processing the Grant ........................................................................................................... 7 Distributing and Acknowledging the Grant .......................................................................... 7 Online DAF Website .................................................................................................................. 7 Tax Considerations ..................................................................................................................... 7 Reporting and Receipts .............................................................................................................. 7 Conclusion ................................................................................................................................ 7 Appendix A Investment Options .................................................................................................................... 8 Application ................................................................................................................................ 9 Privacy Policy ...........................................................................................................................17 As each has received a gift, use it to serve one another, as good stewards of God’s varied grace —1 Peter 4:10 WELCOME call to serve the Episcopal Church and its Thank you for your interest, and generosity of members at all levels, we continue to seek spirit, in establishing a Donor-advised Fund new and innovative ways to raise resources for (DAF) with the Episcopal Church Foundation mission and ministry, both now and in the (ECF). This Program Guide describes and future. ECF is honored to work with you on explains the policies and procedures established achieving your charitable and philanthropic by ECF for the DAF program. goals through the establishment of a DAF. ECF has partnered with the Presbyterian ABOUT THE EPISCOPAL Foundation and its New Covenant Trust CHURCH FOUNDATION Company, which manages over $1.7 billion in Founded in 1949 by Presiding Bishop Henry assets, to provide administrative/grantmaking Knox Sherrill, ECF is an independent, lay-led support and investment services for this program. organization governed by a board of directors of We are pleased to collaborate with such a respected diverse leaders from all over the country. For over and professional organization with over 20 years of 65 years, ECF has been helping Episcopal faith experience in creating and managing DAFs. communities engage in visioning and planning, develop leaders and raise resources for ministry. ECF is a nonprofit corporation organized under As part of our mission, ECF provides relevant New York State law and recognized by the and meaningful opportunities for faithful and Internal Revenue Service as a tax-exempt public generous Episcopalians to live out Christian charity as defined in Sections 501(c)(3), 509(a) stewardship, including our ministries of planned and 170(b)(1)(A)(vi) of the Internal Revenue Code giving, donor solutions and the DAF. (IRC). ECF is eligible to receive tax-deductible charitable contributions under IRC Section 170(c). As stewards of nearly $300 million in assets, Contributions to ECF under the Donor-advised ECF takes its fiduciary responsibility seriously program are irrevocable, nonrefundable and, to and is committed to ensuring that your the extent allowed by applicable federal and state gifts are managed and invested prudently law, immediately deductible by the donor as a and professionally. As we respond to God’s charitable contribution. 475 Riverside Drive, Suite 750 | New York, NY 10115 | 800-697-2858 | www.episcopalfoundation.org 1 How a Donor-Advised Fund Works DONOR CONTRIBUTION HEALTH CHARITY DEDUCTION DONOR-ADVISED GRANTMAKING FUND YOUR PARISH ADMINISTRATION CHURCH PROJECTS ESTABLISHING YOUR DONOR-ADVISED FUND To establish your DAF, please complete and submit an application together with your The DAF is subject to the Articles of irrevocable gift to the Episcopal Church Incorporation, Bylaws and other governing Foundation. A DAF can be established by documents of ECF, as well as the policies individuals, corporations and other business and procedures for administration of this entities, trusts and estates. If a DAF is program. ECF reserves the right to modify established by a trust or estate, an individual these documents at any time, especially if there must be named as the Primary Advisor. The are changes in the law governing DAFs. ECF application is included in this Program Guide, is the sole owner of the DAF and its Board of available online at www.episcopalfoundation. Directors, officers and employees have ultimate org/programs/daf and may be mailed, faxed, or control over all investments and grants under emailed as indicated on the form. this program. 2 475 Riverside Drive, Suite 750 | New York, NY 10115 | 800-697-2858 | www.episcopalfoundation.org In order to receive the associated tax benefits • For gifts of other non-traditional assets of a charitable deduction under applicable (e.g., real estate, artwork, business interests, federal and state law, a donor’s gift must be etc.), please contact ECF at 800-697- unconditional and irrevocable. Therefore, under 2858 for further discussion and review. this program, a Donor (Primary Advisor) may recommend, but not control, how assets in a Please note that your DAF may be designated DAF are invested and distributed, with all such as a beneficiary in a will or other testamentary recommendations subject to the approval of ECF instrument as well as non-probate property in its sole discretion. Grants must be made to including, but not limited to, an Individual qualified organizations as determined by ECF, Retirement Account (IRA), charitable remainder and a majority (at least 51%) of all grants must trust or life insurance policy. be made to Episcopal entities (e.g., parishes, For a current DAF fee schedule, please contact dioceses, schools, etc.). ECF at [email protected] Assets to Establish a DAF or 800-697-2858. The minimum amount to open a DAF account Naming Your DAF is $2,500. All gifts must be reviewed by ECF When filling out the application, the Donor prior to acceptance. Once the gift is accepted chooses the name of the DAF, e.g., the and received, ECF will provide a written receipt “John Smith Family Fund.” The DAF name to the Donor. DAFs may be opened with a and the Primary Advisor will appear on all check, credit card, electronic funds transfer, wire correspondence. Any grant to a charity may also transfer or marketable securities. While non- be made anonymously and your preference can traditional assets will be considered for donation, vary for each grant recommendation. they are subject to prior approval by ECF’s Gift Acceptance Committee and may incur Advisors to Your DAF additional processing fees. Once the DAF is established, you, as the Donor, • Gifts by check should be made payable will be considered the Primary Advisor and to the Episcopal Church Foundation will receive all correspondence related to DAF and mailed with the DAF application activities. If a DAF is established jointly with a to the address on the form. spouse or another individual, both of you will be designated as Primary Advisors. Primary • Gifts by credit card can be made Advisor(s) have complete account privileges on the application including making additional contributions to • For gifts of publicly traded securities, the DAF, recommending grants and investment please visit www.episcopalfoundation.