Donor Advised Fund
What is it?
Donor Advised Fund (DAF) is a vehicle that allows donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants to be distributed from the fund over time. Donors can contribute to the fund as frequently as they like and recommend grants to their favorite charitable organization whenever it makes sense for them. The fund grows tax free.
How does the Kent State University Foundation (KSUF) Donor Advised Fund work?
KSUF receives the funds from the donor, provides the necessary IRS tax documentation and works with the Columbus Foundation to manage the fund. The Columbus Foundation is one of the largest community foundations in the country with more than $3 billion in assets and works with many higher education institutions to provide DAFs to their donors. The Columbus Foundation uses the Vanguard Family of Funds to invest the assets and charges an administrative fee of one percent. There is a minimum requirement of $10,000 to set up a fund. The donor should make special inquiry if cryptocurrency is the desired form of DAF funding as there are special requirements. After the fund is established, the donor will have access to a website to view the account’s balance and initiate grants. KSUF requires that at least 50 percent of the grants benefit the university.
If you are interested, please contact Jessica Vargo at email@example.com to begin the paperwork process to set up your Donor Advised Fund.