Yes. All funds must maintain a minimum balance of $1,000 to remain active.
Yes. All funds must maintain a minimum balance of $1,000 to remain active.
Yes. We will provide you with a user ID and password to securely access your foundation online. Your personal information is only accessible to you and United Charitable. If you approve, your advisor can also be granted access to your fund account. If you happen to forget your password, you can reset it online. However, if you forget your user ID, please call us at 571-620-3000 and we will be happy to assist you.
Yes. You can choose any name for your donor-advised fund account. Most donors choose a name that reflects the main purpose of the account such as “The Smith Family Educational Foundation.” Some donors select a name that memorializes a loved one, e.g., “The Jane Williams Cancer Foundation.” Another option is to name the foundation after your philanthropic goal, e.g., “The Thomas Johnson Scholarship Fund.”
Yes. Your account assets can be split between multiple successor funds. Or, you can have your successors share in the advising responsibilities. Also, your successor advisors can name their own successor advisors. At United Charitable, there are several ways that your donor-advised fund account can exist in perpetuity.
At United Charitable, we believe that a donor-advised fund is an integral part of your personal financial plan. You are free to work with your financial professional to create a customized, United Charitable-approved investment plan that meets your philanthropic goals.
United Charitable's DAF application fee is $500. We have no minimum donation amount required to open the DAF account. To create an investment account within your DAF, you must make a contribution of $25,000 or more. Once your account is established, you can make subsequent contributions of any amount.
At United Charitable, it takes less than a day. Once you submit a completed donor application, your account is established and ready to receive contributions.
You can designate one or more charitable organizations as account beneficiaries. Or, you can distribute the account's assets to one or more charitable organizations. If you don't select either option, United Charitable can annually distribute 5% of your account's balance to the charitable organizations that have previously received grants. If you have not recommended grants, the donor-advised fund account's entire balance will be transferred to the United Charitable Gives Foundation.
A donor-advised fund can effectively function as a family foundation. A donor-advised fund offers much of the flexibility and appeal of a private family foundation without many of the regulations, requirements, and overhead expenses. For a more detailed comparison of a donor-advised fund and a private foundation, please click here.
Individuals, families, companies, foundations, and other entities can begin a donor-advised fund account by contributing assets.
To establish a donor-advised fund at United Charitable, a donating individual or organization completes the Application to Begin a Donor-Advised Fund and makes a tax-deductible donation of cash, securities, or other financial instruments. They surrender ownership of anything they put into the foundation, but retain advisory privileges over how their account is invested, and how it distributes money to charities.
The Pension Protection Act of 2006 defined a donor-advised fund as a fund or account—
“(i) which is separately identified by reference to contributions of a donor or donors,
“(ii) which is owned and controlled by a sponsoring organization, and
“(iii) with respect to which a donor (or any person appointed or designated by such donor) has, or reasonably expects to have, advisory privileges with respect to the distribution or investment of amounts held in such fund or account by reason of the donor’s status as a donor.”
In short, that means that a donor-advised fund or “foundation” is a charitable giving vehicle administered by a public charity (like United Charitable) created to easily manage charitable donations on behalf of individuals, families, or organizations.
A contribution becomes a donation when the asset is “out of the donor’s control.” This is determined by the type of asset you contribute, when and how it is transferred to your United Charitable donor-advised fund account.
Yes. Anyone can make a tax-deductible contribution to your donor-advised fund account at United Charitable.
You may name your donor-advised fund as the charitable beneficiary of all or part of an IRA. You should consult with your tax advisor or attorney to determine how this affects your tax liability and filing needs.
You may contribute any amount at any time. Many donors like to add to their donor-advised fund accounts at the end of the year to maximize their tax savings. Others prefer to make regular contributions and allow the assets to grow for future grantmaking.
United Charitable's DAF application fee is $500 (this is considered a tax-deductible donation). We have no minimum donation amount required to open the DAF account, however the account needs to maintain a balance of $1,000 annually. To create an investment account within your DAF, you must make a contribution of $25,000 or more. Once your account is established, you can make subsequent contributions of any amount.
If the funds are less than $25,000, the account is held in cash. Once your fund account reaches $25,000 or more, we invest it, according to your recommendations.
United Charitable accepts a wide range of assets. These include:
United Charitable strongly encourages you to consult with your tax advisor or attorney before making a charitable contribution. If you have a question about donating an asset not listed here, please call us at 571-620-3003 and we’ll be happy to discuss it with you.
Yes. United Charitable provides you with a written confirmation of your contribution(s). This confirmation serves as a receipt for your taxes. With a donor-advised fund account, you can immediately deduct the full amount of your contribution. Therefore, grants you recommend from your donor-advised fund account are not tax deductible.
Under the Internal Revenue Code, deductions for charitable contributions are subject to certain "percentage limitations." That means you can deduct a stated percentage of your adjusted gross income ("AGI") in the year you take the deduction. Contributions in excess of these percentage limitations may be carried forward for additional years.
United Charitable is a 501(c)(3) public charity. Therefore, percentage limitations that apply are the most favorable charitable deductions available. Deductions for contributions of long-term capital gain property—such as appreciated securities held for more than one year—are limited to 30% of AGI. Deductions for all other contributions —including contributions of cash—may be taken up to 50% of AGI. Your ability to take itemized deductions may be subject to certain other limitations. Please contact your tax advisor to evaluate your tax deductibility limits.
United Charitable cannot make grants to private non-operating foundations. Also, United Charitable cannot make grants to individuals or to satisfy a pre-existing pledge. Grants cannot be made to political candidates or parties. Grants cannot be used for any personal benefit, such as tuition, dues, membership fees, or any goods purchased at a charitable auction.
Yes, with United Charitable's prior approval. After we review and approve your plan, a donor-advised fund may award a scholarship, fellowship, and other awards based on IRS guidelines. United Charitable will provide assistance in designing such programs.
United Charitable can make grants to charitable organizations that are tax-exempt under Internal Revenue Code (IRC) Section 501(c)(3) and public charities under IRS Section 509(a). United Charitable can also make grants to private operating foundations. United Charitable cannot make grants to private non-operating foundations. If you have a special grant request, please contact a member of United Charitable's staff.
No. The most common reason for denying a grant is a donor's desire to use that grant for table sponsorship or event tickets. When you make your initial contribution to a donor-advised foundation, your contribution is 100% tax deductible because you do not receive any goods or services in exchange for that contribution. Charitable events and galas provide their attendees with benefits that aren't tax deductible — such as food, drinks, entertainment, and/or door prizes. Therefore, grants recommended for these purposes cannot be approved.
Yes. United Charitable is one of the few donor-advised fund providers that makes international grants. These grants require additional due diligence to determine if the foreign charity is eligible. International grants also require additional monitoring. As a result, United Charitable charges additional fees for these types of grants. These additional fees are charged to your donor-advised fund account when you recommend the grant.
No. A donor may engage in such activities privately, but may not use donor-advised fund funds to support them. If you are interested in actually conducting a charitable program, please call us at 571-620-3003 to inquire about fiscal sponsorship. We have entirely separate operating rules and regulations governing fiscally sponsored programs.
United Charitable's grant requests are processed daily. You can provide us with written requests using our Disbursement Request Form. If you use your secure account login to access your donor-advised fund online, you may recommend a grant to be disbursed immediately.
No. United Charitable does not charge a per-grant fee. United Charitable does charge additional fees for international and non-501(c)(3) grants, as well as for grants that are requested with next-day delivery.
Yes. Your fund will be identified on the top line of the upper left-hand side of the check. The accompanying letter will also recognize the name of your fund. If you choose to make the gift anonymously, your fund name will not be printed on the check or the accompanying letter.