Central to the RMCF's commitment to honoring donor intent is the flexibility to offer our donors a direct way to support the causes and organizations they care about.
When you establish a RMCF donor-advised fund, you can specifically designate where and when your funds are directed. With RMCF's strong governing principles, you can be assured that your funds will be used for those causes that you specify. You can add to your fund at any time, and will receive a tax deduction in the year the gift to a fund is made. Grants can be distributed at any time and RMCF screens grant recipients to ensure that they meet IRS requirements for qualified charities.
It is a way to give that is:
• Personal. You can recommend grants to your favorite charities wherever they are located.
• Flexible. You can add to the fund whenever you want. RMCF can accept gifts of almost any asset, including stock and real property.
• Efficient. RMCF keeps track of your donations and sends an acknowledgment for each gift made to a fund.
• Accountable. RMCF sends a quarterly report that provides information in recent gifts, grant activity, and investment results.
• Informed. RMCF staff is available to help you learn more about groups that fit your philanthropic needs.
• Family-friendly. You can involve your family in your charitable donations at any time - and allow them to advise grants from the fund into the future.
A donor-advised fund is ideal for families and individuals who:
· Appreciate simplicity.
· Support multiple charities and are interested in learning more about their communities.
· Want help with their decisions about their grant recommendations.
· Need to make charitable contributions at times that are financially advantageous from a tax standpoint.
· Discuss a donor-advised fund with RMCF fund development staff.
· RMCF will provide a fund agreement for you.
Donor Advised Fund Guidelines
The Rocky Mountain Community Foundation, a Colorado nonprofit corporation recognized by the Internal Revenue Service as exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code (the “Foundation”), has authorized the establishment of Donor Advised Funds by resolution of the Board of Directors adopted on October 17, 2007. These guidelines may be amended from time to time, when deemed necessary or desirable by the Board of Directors.
Characteristics of Donor Advised Funds
Donor Advised Funds may be established by the donation or transfer by any person to, and acceptance by, the Foundation of money or property, whether by contribution, gift, bequest or devise, or by transfer from a charitable or other organization, to further or carry out the charitable purposes of the Foundation, as set forth in its articles of incorporation and bylaws. Contributions to Donor Advised Funds represent irrevocable gifts subject to the legal and fiduciary ownership and control of the Foundation’s Board of Directors. A Donor may not impose any material restriction or condition that prevents the Foundation from freely and effectively employing the contributed assets, or the income derived there from, in furtherance of a charitable purpose of the Foundation.
Nature and Terms of Donor Advised Funds
Each Donor Advised Fund shall be the property of the Foundation, owned by it in its normal corporate capacity; it shall not be deemed a trust fund held by the Foundation in a trust capacity. In such capacity, the Foundation shall have the ultimate authority and control of all property in the Fund, and the income derived therefrom, for the charitable purposes of the Foundation. Each Fund may be recorded on the books and records of the Foundation as an identifiable and separate fund and may be given a name or other appropriate designation as requested by the Donor. Anything herein or in the deed of gift or other instrument of transfer creating a Donor Advised Fund to the contrary notwithstanding, each Fund shall be a component part of the Foundation and not a separate trust, and shall be subject to the governing instruments of the Foundation,including the articles of incorporation and bylaws, as amended from time to time.
Value
The minimum amount to establish a Donor Advised Fund is $5,000, but the Foundation encourages Donors to build their funds up to a minimum of $50,000 over three years. The Foundation will not advise Donors on the value of contributed property.
Role of Donors
The Foundation welcomes the involvement and recommendations of its Donors with respect to distributions from Donor Advised Funds, but such recommendations are advisory only and are in no way binding upon the Foundation. The Foundation honors the charitable intentions of its Donors consistent with community needs and applicable laws and regulations. Donor advice will be considered if offered in writing or by fax or e-mail. If the Donor hereafter serves on the Foundation’s Board of Directors, the Donor shall be ineligible to vote on any distribution from the Donor Advised Fund.
Distributions
Non-Endowed Funds. In any given year, the Foundation shall use or distribute from the Fund, for grants or administration as the Board of Directors shall determine, such amounts as are determined by the Foundation.
Endowed Funds. It is intended that the principal of the Fund shall be preserved in perpetuity. In any given year, an amount not to exceed a certain percentage of the market value of the Fund (determined in accordance with the Foundation’s valuation policies and procedures in effect from time to time), less administrative fees and expenses, shall be used or distributed for grants or administration as the Board of Directors shall determine.
All Funds. All distributions from Donor Advised Funds are subject to the Foundation’s variance power and must be ratified by the Foundation’s Board of Directors. The Foundation encourages distributions of at least $250 from any Donor Advised Fund. Unless otherwise requested by the Donor of the Fund, any distribution from a Donor Advised Fund shall identify to the grantee organization the name of the Fund from which the distribution is made.
Restrictions on Distributions
Distributions from Donor Advised Funds established at the Foundation will be made only if they are consistent with the Foundation’s charitable purposes and satisfy community needs identified by the Foundation as deserving of its support. Fund distributions will not be made to individuals. Fund distributions will not be made for any purpose or to any organizations that would provide a tangible benefit to the Donor recommending the distribution. No Fund distribution (whether in the form of a grant, loan, compensation arrangement, expense reimbursement, or other payment) will be made to the Donor, a Donor Advisor, or a related person. It is the Foundation’s policy that distributions from Donor Advised Funds may not be made to any organizations that are not section 501(c)(3) public charities without sufficient due diligence to establish that such distribution fulfills a charitable purpose. In addition, it is the Foundation’s policy that distributions from Donor Advised Funds may not be made to any section 509(a)(3) supporting organization without sufficient due diligence to establish that such distribution does not require the Foundation to exercise expenditure responsibility. Distributions from Donor Advised Funds will not be made to support or promote political or legislative activities.
Evaluation of Donor Recommendations
In evaluating recommendations for distributions from Donor Advised Funds, the Foundation staff investigates all prospective grant recipients to ensure that they are organized and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal Revenue Code or that the grant will be used for a charitable purpose. All distributions from Donor Advised Funds must be ratified by the Foundation’s Board of Directors.
Additional Advisors
The privilege of making recommendations shall be extended to Donors, their spouses, and their designees. All requests to appoint additional advisors and successor advisors must be communicated to the Foundation in writing by the Donor(s) establishing the fund. A Donor may change this designation at any time by completing the Successor Advisor Form available from the Foundation. If after six months from the death, resignation, or incapacity of a Donor Advised Fund’s Donor(s), the Foundation has not received in writing the names of an additional advisor or successor advisor to the fund, the Fund shall continue as part of the unrestricted endowment funds of the Foundation.
Investment of Assets
The Foundation has the responsibility and authority for the investment of the assets of each Donor Advised Fund. In addition to all of the powers granted by the Uniform Management of Institutional Funds Act or other provisions of applicable law, the Foundation shall have all powers necessary, in its sole discretion, to carry out the purposes of the Fund, including, but not limited to, the power to retain, invest and reinvest the Fund in accordance with its investment policies as adopted by the Foundation and as may be amended from time to time. The assets of any Fund may be separately invested or may be commingled with those of other funds of the Foundation, or may be invested in units of a common investment fund which may be established or utilized by the Foundation. However, the Foundation shall have no obligation either to invest separately or to commingle the assets for investment purposes. In making Fund investments, the Foundation shall exercise ordinary care and prudence under the facts and circumstances prevailing at the time of the action or decision. The Foundation may, in its sole discretion, delegate to its committees, to its officers or employees, or to agents (including investment counsel) the authority to act in place of the Board of Directors in investment and reinvestment of the Fund; contract with independent investment advisors, investment counsel or managers, banks, or trust companies so to act; and authorize the payment of compensation for advisory or management services.
Variance Power
Donor Advised Funds will be subject to the provisions of the articles of incorporation and bylaws of the Foundation, including the power vested in the Board of Directors to modify any condition or restriction on the distribution of funds if in its sole judgment (without the approval of any trustee, custodian or agent), such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent with the charitable purposes and functions of the Foundation.
Conflict of Terms
In the event of an inconsistency between these guidelines and any guidelines, terms, or conditions appearing elsewhere in connection with any fund, these procedures, as interpreted by the Foundation, shall govern, and the Foundation reserves the right to take any actions at any time which, in its discretion, it deems reasonably necessary or desirable for the proper administration of any fund or the Foundation.
Fees
Donor Advised Funds are subject to administrative and investment fees, and the Foundation reserves the right to change its fee structure at any time.
Reports
The Foundation will provide to the Donor at least annually a report showing the assets then held as the principal of the Fund and all receipts, disbursements and distributions during the period covered by the report, as well as such other information relating to the Fund as the Donor may reasonably request. The Foundation shall not be obligated to obtain a separate audited financial report for the Fund.