Donors give to a charitable gift fund in order that money might be used in an effective manner. There are different types of philanthropic funds, and each has distinct benefits tied to it. Assets in a charitable gift fund might be earmarked for a specific purpose, such as eliminating poverty in a poor, rural region. The design of the fund might be more flexible and allow donors to suggest nonprofit organizations that a charitable gift fund could support.
Although no two charitable gift funds may be exactly alike, the ultimate goal of these portfolios is to make a positive difference in a region, demographic, or cause. Assets from various donors are pooled together into an individual charitable gift fund. Donors can give money to the fund and let the managers or board of trustees decide how that money is used.
Also, donors can become more involved in the process and have a say in the way that assets in the charitable portfolio are invested so that the value of the fund grows. To take a more active role, a donor might have a specific nonprofit organization in mind that the charitable fund could support and may recommend that money be directed in this manner. Donors' funds alone can go toward a nonprofit organization in the form of a grant, and the donor may be named or remain anonymous.
Charitable gift fund donations could be received by individuals, families, or corporations. For a company that is dedicated to supporting philanthropic efforts, selecting a charitable gift fund could streamline the giving process. Donations can be made online, and because the donor can recommend different uses for the fund assets, there may little reason to invest in other charities.
Among the benefits for donating to a charitable fund are potential tax advantages. Upon donating, the overseers of the charitable gift fund should provide donors with the necessary paperwork. This may include a conformation of the donated amount, financial statements about the fund, and tax forms so that the donor can take advantage of benefits.
A charitable gift fund may require a minimum investment amount. The size of the first investment will likely vary based on whether the donor is an individual or a corporation. Also, fees are likely be assessed for the administration of and the investment in the charitable fund. Some funds offer incentives, such as fewer fees, for larger donation amounts.
