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Donor Advised Funds

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.



COMPARE THE DIFFERENCE
Private Foundation 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

 

BENEFITS

  • 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

STEPS TO GET STARTED

FAQ

“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.