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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

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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 oneā€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

Ready to Get Started?

Download the handbook to learn more and obtain next steps.

For more information, contact  Emily Moreno, program director, at 214-334-3397.