How a Donor Advised Fund works

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How a Donor Advised Fund Works

The procedure is designed to be easy. If you have questions, the experienced staff of American Endowment Foundation is available to guide you through every step of the process. To establish a Donor Advised Fund at AEF:

1. Download and print out a Program Description and Application, or contact us to have it mailed to you.

2. Complete the simple Application.

3. Contribute assets to your Fund. AEF will accept as little as $10,000 as an initial contribution. When we receive your completed application, we will contact you or your professional advisor to arrange transfer of the assets you intend to give and to arrange the Fund’s investment program.

4. When we accept your contribution, we send you a letter acknowledging your gift, and you receive a supply of grant recommendation forms.

You retain the right to advise AEF in administering the affairs of your Fund. Your role is that of an advisor (hence the name donor advised fund). This concept of advice is key to your Fund’s superior tax treatment by the IRS. Consider the following:

Contributions, once received and accepted by AEF, are irrevocable.
All recommendations from you are advisory. IRS regulations common to all donor advised funds requires that the sponsoring charity (in this case, AEF) must have final say on all recommendations.
The Donor Advised Fund must be operated exclusively for charitable purposes.
AEF can only consider grants to US-based, tax-exempt, public charities or to qualified governmental organizations.
AEF will contact you immediately regarding grant recommendations that do not comply with tax regulations.

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. Fees are charged directly to a Fund and not charged to the donor.

Please call us for our latest fee schedule: 1-888-440-4233

Getting started
AEF lets you structure your giving over time - A Donor Advised Fund can start with a minimum contribution of $10,000. This allows you to get started at low threshold, understand how our program works, and then, as appropriate, contribute more.