Types of Funds - Donor Advised

The Donor Advised Fund is SCCF’s most flexible fund. Your contributions to your fund qualify fully for tax deductibility in the year such gifts are made (subject to annual deduction limits). A Donor Advised Fund allows you to simplify and consolidate all of your charitable giving. With a donor Advised Fund, you create a fund without naming any specific charitable institution(s) but retain the right to recommend grants to charities of your choice over time. In addition, you can involve your family as advisors in making decisions about grants to be made from the fund. You may also have an advisory committee named to make recommendations from your fund. SCCF can also assist you in identifying ministries or causes that reflect your interests. Establishing a Donor Advised Fund at SCCF is like creating your own worry-free private foundation. That’s because your SCCF Donor Advised Fund lets you practice philanthropy with all of the tax benefits and flexibility of a private foundation but without the administrative costs and technical burdens associated with running a private foundation.

Private Foundation	SCCF
Legal and accounting fees to establish a foundation	No start up costs
Foundations need to manage assets, balance books, keep records, and prepare annual foundation tax returns.	All administrative, investment and record keeping services are provided by SCCF
Excise taxes average 2% of investment income annually.	No Tax on fund investment income.
5% of foundation assets must be distributed annually to avoid income tax.	No minimum annual distribution requirements
Must verify tax deductibility of all charities. Must avoid self-dealing.	SCCF verifies the tax status of all recipients. Self-dealing and other foundation rules do not apply.
Complete information on contributions to and disbursements from your foundation are public record.	Your Fund with SCCF is confidential.
Deductions for cash gifts are limited to 30% of AGI and 20% of capital gain property.	Deductions for cash gifts are limited to 50% of AGI and 20% of capital gain property.