These are funds that a donor (an individual, family, nonprofit or for-profit organization) contributes to the Foundation with the understanding that they can recommend how and when the funds will be granted. Gift can be made to an organization that is designated by the IRS as a 501(c)(3) nonprofit organization, a municipality, school or church. The High Point Community Foundation encourages donors of all income levels to get involved by only requiring an initial contribution of $7,500 to establish a DAF. This minimum is lower than the national average, with the median requirement as reported by the Council on Foundations being $10,000. Most donor advised funds at the High Point Community Foundation are non-endowed, which allows the donors and advisors to recommend grants from both the income and the principal of the fund, provided the minimum balance is maintained.
A spouse and/or children may help advise the fund. If the donor wishes, all transactions can be handled with complete anonymity. Additional contributions may be made at any time.
A fund may be established for as little as $7,500.
Individuals wishing to take a tax deduction at a time of high or extraordinary income and decide later how he or she wishes to distribute it. Individuals receiving an inheritance, needing an immediate tax deduction, wanting to distribute once they have thought about it or as needs arise. Individuals who wish to involve family in a collective charitable giving process where they can all decide together what grants should be advised to the Foundation. Individuals handling another’s affairs (such as an elderly parent) who know what grants they want to recommend at what time each year and wish the Foundation to attend to the details.