Fund types tailored to your client’s charitable goals
Just as each of your clients has a unique estate and financial plan, each of your charitable clients needs a unique giving plan. For some, gifting shares of highly appreciated stock consistently makes the most sense for their charitable and tax goals. For others, leaving a bequest to support specific areas of interest is the best fit for the client’s financial situation and community priorities.
GCF has several charitable giving vehicles to meet a wide range of clients’ needs. In many cases, a client can benefit from setting up multiple funds of different types. See below for a quick primer on a few of the most common fund types.
Donor Advised Fund
A donor advised fund (DAF), our most popular giving vehicle at GCF, enables your client to establish a specific account for charitable giving. Your client makes tax-deductible contributions to their fund, and then recommends grants to their favorite charities. Due to its flexibility and ease, a DAF can also be the preferred giving solution compared to a private foundation or supporting organization for many donors. It’s also a great tool for encouraging philanthropy across generations, passing along family values to children and grandchildren.
Designated Fund
A designated fund allows a client to direct their giving to a specific agency or purpose. Over time, GCF’s staff manages the distributions from the fund according to the terms established by your client. This type of fund is a great tool for Qualified Charitable Distributions, which cannot be used to establish or add to a donor advised fund.
Field of Interest Fund
Clients who want to target their giving to specific areas of community need (such as education, health, environment or the arts) can set up a field of interest fund to establish parameters for grant making under the ongoing guidance and expertise of GCF’s Community Impact team. A field of interest fund can meet emergency and critical needs in the community to address your client’s most cared about causes.
Scholarship Fund
Clients can set up funds to support students’ educational pursuits based on the parameters they outline with help from the experts at GCF. The fund can be tailored to a specific area of study, geographic area or academic or financial requirement.
Here’s a pro tip: For clients aged 70 ½ and older, consider recommending a Qualified Charitable Distribution from a client’s IRA to a fund at GCF. All the fund types noted above are eligible recipients, with the exception of the donor advised fund.
