HOW TO SET UP A DONOR ADVISED FUND
You can create a Child Welfare League of America Charitable Investment Fund account in four simple steps.
STEP 1: OPEN AN ACCOUNT
Complete and sign the Donor Contribution Agreement and mail or fax to CWLA. Below are several guidelines for completing the application:
- Designate Account Donor(s): You can include yourself, your spouse, family members, and friends as donors.
- Name the Account: Choose a name for your charitable account. The name can reflect your family name or your charitable mission, such as "The Arthur Smith Fund for Children."
- Designate Account Advisor(s): You can choose to name advisors to the account that can assist you in making grant recommendations. Often children and other family members are chosen as account advisors.
- Designate Account Successor(s): Account successors assume all responsibilities for the account upon the death of the original donor(s), including making additional contributions, up front investment strategy recommendations, grant recommendations, and designating future account successors. By choosing account successors, you ensure your charitable giving plan continues.
- Designate an Area of Interest: If the account is inactive for at least five years, and no donors, advisors, or successors are found, the Trust may make grants from the account to the charity(ies) named by the donor(s), or if none have been named, according to your stated area(s) of interest. Your area of interest may be either a geographic area, such as the Mississippi Delta or Acadia National Park, or a particular charitable cause, such as education or the arts, or both.
STEP 2: MAKE A CONTRIBUTION
When opening an account with the Fund, you make an irrevocable gift of cash and/or securities to the Trust. The minimum for initial contributions is $25,000. The minimum for additional contributions is $5,000. You will immediately receive a potential income tax deduction.
STEP 3: ADVISE ON INVESTMENT STRATEGY
One of the primary advantages of a donor-advised fund is your ability to advise the Trust up front on the investment strategy of your contribution. By investing your contribution, you have the opportunity to grow your contributed assets, providing you with the possibility of increasing the size of your charitable grants. The Trust offers three investment pools for you to choose from-all professionally managed by Citigroup Asset Management using Smith Barney Mutual Funds.
- Growth Pool: (80% equities/20% fixed income)
- Balanced Pool: (50% equities/50% fixed income)
- Conservative Pool: (20% equities/80% fixed income)
STEP 4: RECOMMEND GRANTS
At any time, you can make grant recommendations to the Trust. When choosing your recipient charities, you can turn to our online database of nearly 800 member agencies that serve children, youth, and families across the country. Our database will help you refine your search, allowing you to research and pinpoint child- and family-serving organizations by geography and area of interest. Recipient charities must be public charities domiciled in the United States. You can also complete the Grant Recommendation Form and forward the completed form to CWLA.
Donor-advised funds, unlike private foundations, give you the choice of whether or not you wish to receive recognition for your gift. If you prefer, you can make your grant recommendation anonymously or in the name of another.
You are in the fortunate position to make a lasting impact in the lives of America's children. By incorporating a charitable-giving strategy into your overall financial and estate plan, you will help promote positive changes in every aspect of a child's life. The Child Welfare League of America's dedicated members directly address virtually every need a child may have from infancy to adulthood.
Investing in children is an investment in the future-a future in which eager, young minds can realize their dreams and grow into thoughtful, intelligent adults.
The Child Welfare League of America is not engaged in rendering legal or tax advisory service.
Please notify your attorney or other professional advisor for advice or assistance in specific cases
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