Donor Advised Funds
It's like a private foundation for your credit union... without the hassle!
If your credit union is considering its own foundation, a donor advised fund offers significant benefits and is an excellent way to carry out your charitable wishes. It gives your credit union the flexibility of its own foundation without the task of starting and managing a private foundation.
Next steps to get started
Compare the difference
||HCUCF Donors Advised Funds
|Substantial set-up costs
(legal, accounting, filing fees)
|No set-up fees
|5% annual distribution requirement
||No specific annual distribution requirement
|Excise taxes, typically 2% of annual income
||No excise taxes
|Responsible for all operating costs
||Shared operating costs
|Requires 501(c)(3) status,
which must be maintained with the IRS
|No need to acquire 501(c)(3) status
|CU responsible for annual reporting & licensing
||CU responsible for annual reporting & licensing
- The recipient and amount of each charitable grant is made following your credit union’s recommendation
- Federal tax deduction up to 30% for gifts of appreciated, long-term securities
- Potential increase in fundraising from members and partner organizations because donations are tax-deductible
- Professional staff to assist you at any time
- No capital gains taxes on gifts of real estate or limited partnership interests
- No reporting requirements, administrative burdens or expenses – we handle the paperwork
What people are saying...
“Starting the River Region Fund was an easy decision for my credit union. We avoid paying taxes on earnings by making a contribution to the donor advised fund. Then we use those funds throughout the year to directly support local charities that impact our members. It’s a great opportunity to make a local impact and support the Foundation.”
- Rick Nichols, CEO, River Region Credit Union
To learn more, contact Andrea Robinson, HCUCF Executive Director, 800.392.3074, x1316.