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Donor Advised Funds

Is your credit union interested in starting a nonprofit foundation or charity?

Many organizations seek to give back to the community through foundations and charitable donations, but may encounter compliance challenges or lack critical resources. A Cornerstone Foundation Donor Advised Fund may help you navigate the complex legal and accounting requirements as you start up your credit union's charitable organization.

Here are a few of the issues to consider:

Substantial start-up costs, including legal and filing fees
Minimum annual distribution requirements
Excise taxes

Managing operating costs
Setting up 501(c)(3) status
Annual reporting and licensing compliance

Informational Webinar

Donor Advised Funds Informational Webinar Handouts (pdf)

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Cornerstone Foundation provides a terrific alternative solution with a Donor Advised Fund

An ideal alternative to starting a nonprofit foundation is a Donor Advised Fund. A Donor Advised Fund provides the benefits of creating a foundation while avoiding many challenges such as initial set-up fees, administrative costs, and ongoing compliance issues, including reporting and excise taxes.

Features of a Donor Advised Fund:

No set-up fees
No excise taxes
Disbursement fee based on the disbursement amount and a low one‐time annual storage fee

No specific annual distribution requirements
Shared operating costs
501(c)(3) status is not required
Cornerstone Foundation handles reporting and licensing

Why use Cornerstone Foundation?

Cornerstone Foundation assists your credit union with all aspects of setting up a Donor Advised Fund. Our team will help your organization create a decision-making committee and establish application, approval, funding, and reporting processes. We handle the compliance and administrative functions of managing your charitable donations and guide your board, financial, and legal advisors. Additionally, Cornerstone Foundation advises your credit union on using the most appropriate assets to start your fund as well as determining the allocation of your charitable gifts. Your credit union acts as the donor and chooses the fund’s name with the ability to brand it as the credit union’s own charity.

Enjoy these benefits:

Recipient and grant amounts are disbursed based on your recommendations
Brand and market your fund to organizations of your choosing
Tax-deductible donations increase potential contributions from members and partner organizations
No capital gains taxes on real estate or limited partnership interest gifts

Up to 30% tax deductions for gifts of appreciated, long-term securities
Give back to the community through local charities and other 501(c)(3) charities
We handle all the administrative tasks and there are no start-up costs
Full support: Our professional staff is available to you at any time