Donor Impact Made through Fund Flexibility
By: Jennifer Fox
Together, the Henry County Community Foundation and donor advised funds are bringing local solutions to causes and issues that matter in the community.
So, what is a donor advised fund (DAF), and what makes it special?
Donor advised funds are a unique way for individuals and families to help address the evolving needs in Henry County. These funds are a flexible option and are great for donors who want to play a more active role in grantmaking.
They allow donors the opportunity to recommend charitable organizations to receive grants and to work with the Foundation to identify local projects that could benefit.
Another remarkable aspect of the DAF is the ability to respond quickly to local needs. DAFs can be used to support everything from emergency response efforts to community economic development.
Who can be a part of the donor advised fund process?
Establishing a donor advised fund provides donors with a personal account to use for charitable giving. That personal account can be built over time through monthly donations that ultimately reach the $25,000 minimum needed to begin grantmaking. This can be through personal contributions or a community effort.
These options for giving allow donors to take time to reach endowment. At community foundations across the country, families of varying income levels use DAFs as a way to sustain charitable giving into the future and involve their children in philanthropy.
Once the fund is endowed, gifts are then invested and stewarded to provide annual grant dollars to the projects and organizations of the donor’s choosing. They get to see what the most immediate needs are and make an impact in those areas.
Check out our next article to see the impacts being through donor advised funds at your Community Foundation!