What are Donor-Advised funds?
Donor-advised funds are charitable giving vehicles administered by a public charity. These tools are called by various names including “giving accounts,” “charitable funds,” or “philanthropic funds.”
A convenient, cost-effective alternative to running a private family foundation, a donor-advised fund lets the donor consolidate charitable giving to the University of Maine as well as to other worthy causes of one’s choosing.
How Do They Work?
A donor makes an irrevocable, tax deductible contribution of cash, securities or other assets to a public charity to be added to the donor-advised fund created by the public charity in the donor’s name. Later, the donor makes recommendations to the public charity about grants to worthy charities such as the University of Maine.
Contributions to a donor-advised fund are tax deductiblein the year in which they are given to the donor-advised fund rather than when grants are made. This can provide a tax advantage by allowing giving to be bundled and increasing the deduction available for the tax year.
As with all types of giving vehicles, prospective donors are encouraged to consult with their legal and financial advisors concerning charitable gift programs and their personal financial and estate plans.
If you already have established a donor-advised fund, we would be happy to provide you with the information about philanthropic opportunities at the University of Maine to which you could recommend grants from you donor-advised fund. Philanthropy officers at the University of Maine Foundation are available and happy to assist you.
Creating a Donor-Advised Fund at the University of Maine Foundation
If you are interested in creating a donor-advised fund, you can start one at the University of Maine Foundation. A donor can start a donor-advised fund with a minimum of $10,000. (Contrast this with the $250,000 to $500,000 needed to start a private family foundation.) We suggest that at least half of the principal, income and appreciation of a donor-advised fund benefit the University of Maine.
If you would like to create a donor-advised fund at the University of Maine Foundation, please contact one of our Planned Giving Officers.
To obtain a copy of the Foundation’s audited financial statements, please contact us. If you would like to know the names of the Foundation’s Officers, Directors and Members, please click here.