Donor-Advised Funds

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A better way to give

A donor-advised fund (DAF) is a philanthropic tool established by individuals, families and businesses at a public charity like Community First Foundation. The fund is expertly managed and can streamline giving by serving as a single funding source.

With a DAF, donors receive immediate tax benefits after making contributions to the fund, but can support nonprofits at their convenience, over time. DAFs are a great option for people who want convenience, personal support and engaged giving.

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How do DAFs work?

Individuals, families and businesses can create donor-advised funds at Community First Foundation with an initial contribution of only $5,000. The contribution can be in the form of cash, securities, closely-held stock or more complex assets. Funds are invested, carefully managed and grow tax-free.

You also receive an immediate tax benefit every time you make a contribution to the fund. Then, when you are ready to support your favorite causes and nonprofits, you do so by making grant recommendations. Community First Foundation’s deep knowledge of community needs and local nonprofits can help you with this step. You may designate additional people, like family members, to be advisors to the fund and enjoy making grant recommendations, too.

Community First Foundation is responsible for administration and oversight of the fund, including verifying charities’ 501(c)(3) status, final grant approval and distribution of funds.

Read this story to learn about the tax advantages of bunching your DAF contributions.

What are some reasons to open a donor-advised fund?

Donor-advised funds allow people with a range of incomes to be thoughtful donors. Here are some of the reasons to consider opening a DAF.

You make numerous charitable gifts throughout the year.

Enjoy extensive charitable giving without the administrative burdens. A donor-advised fund provides a simple, flexible and economical way to manage your charitable contributions now and in the future.

You have highly-appreciated stock. 

Avoid paying capital gains taxes on the gain in the stock and generate an immediate tax deduction. Then you can make gifts from your fund over time.

You wish to create a family culture of philanthropy.

Introduce your children and grandchildren to philanthropy by naming them as additional advisors for the fund. Recommending together which charities to receive grants can be a rewarding family giving experience.

You have received an inheritance.

Funding a donor-advised fund with an inheritance allows you to be charitable over time while receiving a tax deduction in the same year.

You wish to memorialize a loved one.

Create a fund in the name of a loved one. Make periodic gifts to charities that he or she cared about. Consider inviting a group of close friends to remember

You want to avoid the complexity and cost of a private foundation.

Avoid complex Federal and State filings, substantial legal support and managing a typical private foundation size of $1,000,000 or more. A DAF becomes a part of the Foundation, which manages administrative, investment, grantmaking and record-keeping support.

Why open a fund at Community First Foundation?

We are a stable organization that has managed millions of dollars in assets since our founding in 1975. We provide personal service to make charitable giving from a DAF easy and rewarding. Other benefits include:

Access to local nonprofits.

Our extensive relationships with local nonprofits help you make meaningful connections and arrange site visits with charitable organizations.

Expert oversight.

Managed by our finance team, board of directors and an independent investment consulting firm, your fund is in expert hands

Family philanthropy.

We can help introduce your children and grandchildren to the joys of giving and support a culture of giving for future generations.

Low opening minimum.

Our low minimum contribution of $5,000 makes opening a fund here more affordable. The annual administrative fee is $200 or 1.00% on the first $1 million in assets, 0.75% on the second million and 0.50% on any balance above $2 million. Minimum grant amounts are $250.

24/7 access.

Through Community First Foundation’s online portal, iCommunity, you can check your fund balance and make grant recommendations 24 hours a day, seven days a week.

Colorado Gives Day and online giving.

You can make grant recommendations online from your donor-advised fund to your favorite Colorado nonprofits on Colorado Gives Day, the state’s largest giving day.

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