How a Donor Advised Fund Works
A Donor Advised Fund at the Grand Raids Community Foundation operates under the same conditions as a private foundation. However, establishing a Donor Advised Fund eliminates considerable extra work and burden.
The donor and their family stay involved with the fund through grant recommendations. After an individual makes an initial contribution, which must consist of personal assets (cash, stocks, bonds, appreciated securities), the Community Foundation handles each grant's administration, including sending letters, along with checks bearing the fund's name to each organization suggested. The donor may make a grant recommendation to any charity or nonprofit organization of their choice and may do so on their own timetable. Fund statements indicating each transaction are sent out regularly. The donor may also access the fund's activity, as well as make grant recommendations, online via the Community Foundation's web site.
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