Establishing a Donor Advised Fund
A Donor Advised Fund is a giving vehicle that many people use as an alternative to having their own private foundation. They have much lower administrative costs, are easy to set up, and are a flexible way to receive immediate tax benefits while also donating to causes you love for years to come.
When you establish a fund at Park City Community Foundation, you’re making an impact that’s multiplied right away—and that keeps on giving well into the future. With our unique emphasis on nonprofit support, we help you sustain organizations that are making a real difference. Our expertise in long-range investing and giving means you’ll get the maximum return on every dollar you donate. What’s more, because your fund can be designed to address the issues that are most dear to your heart—whether local or global—we make sure your philanthropy is both personally meaningful and collectively impactful.
Benefits of Having a Donor Advised Fund
When you establish a fund at Park City Community Foundation, you’re making an impact that’s multiplied right away—and that keeps on giving well into the future. With our unique emphasis on nonprofit support, we help you sustain organizations that are making a real difference. Our expertise in long-range investing and giving means you’ll get the maximum return on every dollar you donate. What’s more, because your fund can be designed to address the issues that are most dear to your heart—whether local or global—we make sure your philanthropy is both personally meaningful and collectively impactful.
Donor Advised Funds (DAFs) are different from other philanthropic strategies, like a private foundation, in several key ways.
- Establish easily: Our team can set up your DAF at no cost, and with an initial minimum contribution requirement of $25,000.
- Advise the fund: You determine the charitable purpose of your donation and recommend grants to nonprofits.
- Take your time with decision-making: You can contribute to your fund over time without deciding immediately where that donation will go. This lets you take an income tax deduction right away and give to nonprofits when you’re ready at a later date.
- Diversify a concentrated portfolio: Our team can help you contribute appreciated publicly traded stock to a donor advised fund to reduce your concentrated stock position.
- Enjoy tax efficiencies: When contributing non-marketable assets—such as privately held stock or hedge fund interests—to a DAF, your income-tax deduction is based on the fair market value of those assets. The tax deduction for non-marketable assets contributed to a private foundation, on the other hand, is typically limited to the donor’s cost basis.
- Fully managed by Park City Community Foundation: We manage the fund per IRS regulations and handle annual IRS tax filing, so your donations receive the appropriate deduction.
Donor Advised Fund Strategy & Planning
As a donor advised fundholder, you have the freedom to recommend where to direct your philanthropy. For some, their areas of interest are focused. For others, they are concerned with directing support to where it is needed most. Park City Community Foundation can help advise you and has deep relationships and history in supporting local nonprofits that are making a big impact. Our expert advisory services enable donors to be champions for community initiatives or establish charitable funds and contribute a variety of assets to them, so you can support the issues and organizations you love in a big way.
Our management services include:
- Connection to local nonprofits: So you can learn more about the greatest needs in the community,
- Online donor advised fund management: To help you track your giving
- Personalized and professional service: To ensure you realize your philanthropic goals
- Access to investment and giving experts: To make the most of your fund or donation
Fee Schedule
For donor advised fundholders looking to develop their own fund spending policy, we understand the many factors which may shape your annual giving. We offer one-on-one assistance to help you determine what spending policy is right for you and your fund. See Schedue of Fees.
Open a Fund
You can quickly establish a fund by completing a fund agreement and making an irrevocable contribution of at least $25,000. You will receive an immediate tax deduction and can start recommending grants right away. Contact Sam Mueller at sam@parkcitycf.org or 435-214-7477 to get started.
Five Reasons to Open a Donor Advised Fund at Park City Community Foundation
1. Donor Guidance
Our team offers guidance and can connect you to the right resources, all in service of helping you maximize your philanthropic impact in a way that makes sense for your overall wealth plan. When you set up a donor advised fund with Park City Community Foundation, you recommend where the charitable contributions go, while we handle everything else. Your impact is multiplied right away—and that keeps on giving well into the future.
Our expertise in long-range investing and giving means you will receive the maximum return on every dollar you donate. What is more, because your fund can be designed to address whatever issues are most dear to your heart, we make sure your philanthropy is both personally meaningful and collectively impactful.
2. Sound Investment Policies
We have brought together Park City’s leading financial managers, investment professionals, and accredited investors to form our Investment & Finance Committee. Together, this committee is responsible for upholding Park City Community Foundation’s Investment Policy while making decisions in an efficient, sustainable, and transparent manner.
3. Socially Conscious Equity Investments
In 2020, our Investment & Finance Committee made the decision to transition to “ESG” (environmental, social, and governance) investment filters to remove investments that are at odds with the Community Foundation’s values. These ESG guidelines more closely align our endowment with Park City Community Foundation’s focus on the people, place, and culture of our community. The same filters apply to Donor Advised Fund equity investments.
4. Socially Responsible Grantee Due Dilligence
Park City Community Foundation is required to ensure that donor advised fund disbursements only go to entities that meet certain criteria. As an added layer of due diligence, Park City Community Foundation will not issue fund disbursements to organizations that explicitly attack or malign, or espouse poor treatment of, or reduce the legitimacy of individuals or groups on the basis of their having certain perceived or physiological characteristics, including, but not limited to, race, color, religion, national origin (including membership in a Native American tribe), sexual orientation, gender, gender identity, mental or physical abilities.
Additionally, the Community Foundation will not disburse funds to organizations with policies or practices that do not align with our mission, core values, and commitment to equity, diversity, and inclusion.
5. Account Fees Are Reinvested in Our Communities
When you have a donor advised fund at Park City Community Foundation, you are increasing and accelerating our impact on the community as conveners and supporters of local nonprofits through grants, education, and collaboration opportunities.
Specifically, Donor Advised Fund management fee revenue supports our Community Fund grant program, which provides donations to dozens of local organizations each year. The Community Fund enriches the lives of those living and working in Summit County by supporting work in the areas of climate, early childhood education, mental health, trail maintenance, youth sports activities, arts and culture, and much more.
Frequently Asked Questions
Who is a Donor Advised Fund for?
Everyone! Part-time and full-time residents – whether you spend a week at a time or year-round in Park City, we can help you find causes you care about locally, in addition to your favorite nonprofits around the country. Long-time and new residents – whether you have been in your home for years or just recently moved to this special community, we are here to help connect you to lasting community impact.
What is the Community Foundation's current portfolio under management?
You can visit our portfolio of managed funds here.
What is the right DAF for me?
We can help make sure that your DAF suits your current and future needs. We offer: Donor Advised Funds, Business Advised Funds, Field of Interest Funds, Designated Funds, Supporting Organizations, and Family Foundations. Additional information on the differences between these fund types can be found in our Fee Schedule.What types of personal assets are acceptible?
We accept: cash, publicly-traded stock, real estate, tangible personal property, retained life estate, bargain sales, retirement plans, and life insurance.How do I choose a name for my fund?
You can be as creative as you want to be! Many donors use their family name to name their fund and others choose a family motto or a special word to them. You are always welcome to select a different name, such as the “Main Street Fund,” to protect your confidentiality.When you recommend a grant through the online Fundholder Portal, you may elect to include or omit the name of your fund that accompanies the payment to the nonprofit, as well as any contact information you wish to share or not. Keep in mind, fund of interest vs general unrestricted.Who can oversee my fund?
In the case of a donor advised fund, you manage your fund’s grantmaking activities. You may choose to designate your spouse or partner, your children, other family members, or a friend as additional primary advisors to your fund. And you may engage future generations by naming successor advisors.What are the guidelines for recommending a grant from a DAF?
Fund grant recommendations can be made to qualifying charitable organizations. The foundation verifies the nonprofit status and charitable mission of the recommended organization. The minimum grant is $100.What is considered a "qualified" charitable recipient?
Grants may be made to public charities; that is, organizations described in section 501(c)(3) and 509(a)(1), (a)(2), or (a)(3); and to private operating foundations (not corporate foundations). Grants may also be made to units of government for public purposes. This includes Native American tribal governments.Are there restrictions on distributions from my DAF?
The IRS does place some limitations on grants from Donor Advised Funds. This type of fund cannot fulfill any pledges you may have made. Similarly, since you will have already received a full deduction for the amount contributed to your fund, donor advised funds cannot be used for tickets to events such as fundraising events, galas, or for memberships that include any direct benefits in return. Finally, distributions cannot go to individuals.In addition, Community Foundation will not make grants to organizations known to support, or who engage in activities, or who publish language that incites or engages in violence, intimidation, harassment, threats, or defamation targeting an individual or group based on their actual or perceived race, color, religion, national origin, ethnicity, immigration status, gender, gender identity, sexual orientation, or physical or mental ability. These activities are contrary to the Community Foundation’s mission and its commitment to diversity, equity, and inclusion.
How do I recommend a grant from my DAF?
Once you have established a fund, you may make your recommendations through our online Fundholder Portal. You can also email us with a request describing your wishes in writing for us to process on your behalf. Donors may recommend grants that provide general support or specifically earmark funds for certain initiatives managed by a nonprofit.Grants may be made to nonprofits in honor or memory of someone you wish to acknowledge. Donor advised fund distributions are referred to as “grants.” Grant checks are accompanied by a transmittal letter identifying the donor advised fund by name (unless anonymity has been specified). The letter also mentions that a charitable tax acknowledgment is not necessary to send.How can the Community Foundation help guide my giving?
While some donors are well-informed about the causes and organizations they wish to support, others avail themselves of our expertise in identifying priority needs and vetted organizations in Summit County, UT.We can help you design a personalized giving plan and assist you in maximizing the impact of your philanthropy. Foundation donors receive our newsletters and annual reports that highlight timely issues and community challenges and opportunities. Donors are invited to foundation events, nonprofit educational forums, grantee site visits, and more.How are my funds invested?
The Community Foundation’s funds are professionally managed and overseen by the Investment & Finance Committee and Board of Directors. Our overall investment strategy is to provide prudent management of invested capital while producing a reasonable return for grantmaking and fund growth. When you establish a donor advised fund, you can choose from several investment allocation strategies, including short-term, mid-term, and long-term pools.What institution are funds invested through?
J.P. Morgan
How can I track the activity and investment returns associated with my fund?
You will receive quarterly statements of your fund’s activity, available in the Fundholder Portal, six weeks after each quarter’s close. You may also access your fund’s monthly statements online, view your fund balance, the status of your grants, and your giving history.What are fund investment options?
We offer three pools: The short-term pool is invested in our savings account, the mid-term pool is invested in fixed income and cash, and the long-term pool is invested in Equities (U.S. Large Cap and EAFE), fixed income, and cash.Are earnings from invested funds subject to income tax?
There is no capital gains tax on assets placed into a donor advised fund.Who files the tax return for a DAF?
The responsibility of filing your donor advised fund return falls on Park City Community Foundation because we manage the fund.Where can I find tax acknowledgement documentation for my DAF contribution(s)?
Fund advisors will receive a letter of tax acknowledgment from Park City Community Foundation each time they make a contribution to their fund. This letter can be included in your personal tax return.
