Frequently
Asked Questions
If
you still have questions, call us at 1-888-440-4233
1.
What types of assets are eligible for contribution to a Donor Advised
Fund?
In addition to cash and publicly traded securities, AEF can accept closely
held stock, life insurance policies, real estate, and interests in limited
liability partnerships and LLC's.
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2.
Another donor advised program I saw required that contributed assets be
immediately sold . Does AEF have such a requirement?
No. Upon review, AEF can hold assets in-kind. When
they are eventually are sold, you recommend how you would like to reinvest
the proceeds.
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3.
Can my financial advisor be involved in investing my Fund?
Yes. You can recommend that we work with your financial advisor to determine
how the assets in your Fund will be invested, and invest in a broad range
of securities, including individual stocks, bonds, and mutual funds.
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4.
Can I name my Fund as beneficiary of my charitable remainder trust?
Yes. As a public charity, AEF can be named as a CRT remainderman.
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5.
Can my children succeed me as advisor of my Fund?
Yes, you can name anyone you want as successor advisor.
Simply name your successor advisor in the Disposition section of the Fund
Application. If you want to name more than one successor advisor, please
identify who will serve as spokesperson of the group.
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6.
What types of organizations are eligible to receive grants?
AEF can make grants to any US-based, tax-exempt 501(c)(3) charitable organization
(other than non-operating private foundations). If
you have any question, please call.
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7.
Can I use my Fund to pay off a pledge I made to my college?
No. Unfortunately, tax regulations prohibit grants that satisfy personal
pledges.
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8.
Can I make an anonymous grant?
Yes. If you request anonymity on the Grant Recommendation Form, AEF will
make the grant without disclosing your identity to the grantee organization.
This can be done selectively or for all grants.
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9. What are AEF’s administrative fees?
AEF incurs expenses in operating your Donor Advised Fund. These include
Donor services, phone support, mailed notices, statements and communications,
grants administration, and online services. To cover the costs associated
with these services, the Fund assesses an account administrative fee,
outlined below:
Fees are
charged directly to your Donor Advised Fund.
Please call us for our latest Fee Schedule: 1-888-440-4233
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10. What are the contribution and balance requirements?
Individuals, as well as organizations or businesses, can open an account
with a minimum of $10,000. After the initial contribution, you may make
contributions of $500 or more at a time.
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11. What types of statements will I receive?
We will mail you quarterly statements that itemize the contributions made
into your account and list the value of your account. This letter also
serves as your receipt for tax purposes. If you recommend a grant to charity,
you will also receive a copy of the letter we mail to the charity with
the grant check, once the grant is approved.
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12.
Can I plan for a successor on my account?
Yes. We encourage our donors to see their account as a vehicle with which
to leave a lasting legacy of giving. You may name one or more designated
individuals as the successor(s) on your account, to take over as donor-advisors
when you are no longer able to, or no longer want to.
Alternatively, you may designate a specified charity as the beneficiary,
and the account will be distributed to the charity.
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13.
How can I get my children involved?
With proper guidance from an adult, you can get involve your children
or grandchildren immediately. If you children are of legal age, you can
engage then as donor-advisors on your account. In that capacity, they
can recommend grants to charities and will receive copies of all statements
and newsletters. If you would like to name your children to succeed you
as donor-advisor to the account after your death, you can name them as
successors of the account.
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14. Can I contribute assets from an IRA?
You may designate your Donor Advised Fund as a beneficiary to a portion
or all of your IRA. There is pending legislation (not yet enacted) that
would allow IRA distributions to charity to be tax-free at age 70 1/2.
We encourage you to consult with a qualified tax attorney to discuss the
tax consequences of utilizing an IRA for charitable giving.
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15. How do you determine the fair market value
of my contribution?
Fair Market Value (for purposes of the charitable contribution deduction)
is determined on the date that contributions are received by the Fund.
In the case of contributions of stock, Fair Market Value is the average
of the high and the low for the day that the assets were received by the
Fund. In the case of contributions of mutual funds, Fair Market Value
is the closing price on the date of receipt. Securities are typically
liquidated the following business day after receipt, so the Fair Market
Value for tax purposes may be different from the amount of sales proceeds
credits to your Donor Advised Fund.
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16. How long will it take for my contribution
to appear in my account?
Typically, your account is open and funded within 24 hours from the receipt
of your contribution. On some occasions (particularly if assets are being
transferred from a financial institution to another.), the process can
take from two to six weeks. If the assets are coming from another financial
institution and you are concerned about timing, we recommend you contact
your broker and encourage the firm to expedite the transfer.
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17. Will I receive a receipt for tax purposes?
Yes. Contribution statements are mailed for each contribution. You will
also receive an annual summary in January.
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18. Can I recommend investments?
Yes, and you can recommend an independent investment advisor to provide
investment management for the account, as well. AEF must approve the advisor
to manage the assets in your account. Assets may be invested in a wide
variety of publicly traded securities, including stocks, bonds, and mutual
funds, in any combination.
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19. Do you sponsor a pooled income fund or
gift annuity?
No. At this time we have chosen to focus our efforts on ensuring the simplicity
and efficiency of our Donor Advised Fund.
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20. Will I receive any income?
No. All account earnings accrue within your Donor Advised Fund, thereby
increasing the amount that you can recommend for grants to public charities.
The earnings in the Fund do not increase any tax deduction you can claim
for contributing to the account, since you receive your deduction at the
time of contribution. Distributions from the account — whether of
principal or earnings — can be made only to qualified charitable
organizations.
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21. How do I recommend a grant?
You can recommend a grant online once you have logged into the DonorCentral,
or you can fill out the Grant Recommendation Form and fax or mail it to us.
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22. What does it mean to “recommend”
grants?
Tax laws require that your charitable contribution must be irrevocable
and unconditional in order for you to receive the associated tax benefits.
Any assets contributed to the Fund belong to AEF and you have relinquished
control of them. However, your role as donor advisor to those funds does
allow you to recommend how the funds are invested and distributed.
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23. Do you have a list of approved charities?
Grants can be made to any IRS-approved public charity. Approved organizations
are U.S.-based organizations that qualify as tax-exempt under Section
501(c)(3) of the Internal Revenue Code and are public charities as defined
by Section 509(a) of the code. AEF provides you the ability to research
through CharitySearch, from GuideStar®,
a database of over 1 million IRS-registered 501(c)(3) non-profit organizations.
Note: All grant recommendations are subject to approval of the Fund.
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24. Is there a minimum grant amount?
$250 is the minimum grant amount.
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25. When will the charity receive the grant?
If we have worked with the charity before, the check will ordinarily be
issued within five business days. If we have not granted to the charity
before, we perform due diligence on your behalf. In this case the check
is typically issued within a few business days.
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26. Will the grant check have my name on it?
The check will bear the name of the American Endowment Foundation; however,
the accompanying letter will recognize the donor or account name (per
your instructions) who recommended the particular grant. You may also
remain anonymous if you wish.
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27. Will I receive confirmation when a grant
is made?
You will receive a copy of the letter sent to the charity along with the
grant check. If for any reason the grant was unable to be issued, we will
contact you by phone as quickly as possible.
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28. Why would a grant be declined?
AEF takes great care to comply with all laws governing charitable gift
giving and all IRS guidelines affecting Donor Advised Funds. The Fund
will not approve any grants that:
- Are directed
to a charity not based in the United States;
- Fulfill
a donor’s pre-existing pledge to an organization;
- Provide
benefit to the donor or individual;
- Support
lobbying, political campaigns or other political activities;
- Support
a charitable event that would constitute a quid-pro-quo arrangement
(e.g., tickets for a fundraiser dinner.)
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29.
How do I access my account online?
Click here to go to DonorCentral
If you do not have your Password, please call us at 1-888-440-4233.
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30. What if I forget my password?
Please call us at 1-888-440-4233 and we will be happy to assist you.
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31. Is my password protected?
Yes. Your personal information is only accessible to you and AEF.
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