Charitable Gift Fund
The Charitable Gift Fund Program at Anabaptist Foundation is a tool that enables you to support the charities of your choice while receiving a tax deduction, protecting your privacy, and simplifying your giving. You may contribute cash, securities, real estate, commodities, or anything on which a fair market value can be placed. In return, you have the privilege to recommend when the gifts will be distributed and which charities will benefit. This type of program is sometimes called a donor-advised fund.
How does the Charitable Gift Fund Program work?
You donate cash or any other asset with a fair market value (real estate, stock, mutual fund shares, etc) to Anabaptist Foundation. We turn your contribution into cash and place the funds in our Charitable Gift Fund. Your gift represents an irrevocable contribution to Anabaptist Foundation, a 501c3 public charity, and is not refundable to you.
These funds are available for distribution to charities you recommend at any time you wish. Assets contributed to the Charitable Gift Fund become the property of the Foundation, and you retain no legal control over the gift. Instead, you are entitled to give non-binding advice to the Foundation about distribution of the funds. Because Anabaptist Foundation is a public charity, you get a tax deduction for the year in which you make the gift, even if not all of the funds are disbursed to other charities during that year.
A special gift fund account is available to you if you wish to make a larger contribution that is distributed to charities over time. Special gift fund accounts may earn interest which result in additional funds for charity.
Key aspects of the Charitable Gift Fund Program
- Donations are immediately tax-deductible
- Able to accept cash or a variety of assets such as real estate, stock, or mutual fund shares
- Added benefit of avoiding capital gains taxes on gifts of appreciated assets
- Flexible timeframe for making disbursements to charities
- Able to support a variety of charities out of one contribution
- Donor isn’t required to gift any percentage of the assets to Anabaptist Foundation
- Serves as a privacy screen to protect the identity of the donor
Costs to use the Charitable Gift Fund Program
Donors incur only modest costs to participate in the program. The basic program fee is only 0.75% on incoming funds ($25.00/minimum) to cover administrative overhead costs. If the Foundation incurs any special costs to accept a gift or to liquidate non-cash gifts (i.e. real estate or securities), we naturally have to cover brokerage fees and administrative expenses out of the gift proceeds.
Typical Users of the Charitable Gift Fund Program
Donors who value anonymous giving:
Anabaptists have maintained a strong tradition of anonymous giving. We are told in Matthew 6:1 “Take heed that ye do not your alms before men, to be seen of them: otherwise ye have no reward of your Father which is in heaven.” This is one of the primary roles of the Charitable Gift Fund – to provide donors with the ability to make gifts while protecting their privacy. The gift checks that the Foundation sends out to churches and charities provide no information as to the identity of the donor.
Donors who want to give from their business:
Some individuals wish to do charitable giving directly from their businesses. These businessmen make monthly, quarterly, or once-a-year gifts into their Charitable Gift Fund account, receive a tax deduction for the gift from their business, and then have the ability to make gift recommendations. Partners in a business can have their shares of the contribution placed in separate accounts so each can make personal gift recommendations.
Donors who give appreciated assets:
Appreciated assets (like real estate, stocks, and mutual fund shares) can be given to charity, with the donor receiving a tax-deduction for the fair market value of the gift. Additionally, the donor can avoid capital gains tax on any portion given to charity. The Charitable Gift Fund is able to accept gifts of appreciated assets, convert them to cash, and permit the donor to make gift recommendations out of the proceeds.
Donors who like systematic giving:
The Automatic Disbursement Option for charitable gift funds permits donors to make regular, systematic gifts to a variety of ministries. The donor provides a list of gift recommendations, and the Foundation confirms the tax-exempt status of the receiving organizations and ensures that gifts are sent out in pre-determined amounts at regular intervals (monthly, quarterly, or annually). This permits the donor to provide ongoing support for the ministries he cares about without having to write more than one check or take time to mail in gifts on a regular basis. The quarterly report provided helps the donor keep track of his charitable giving.
Donors who have a lump sum to give:
Sometimes, a person experiences an infrequent or once-in-a-lifetime financial windfall. Situations like an inheritance or the sale of a farm or business may provide unique opportunities to make special gifts. With use of the Charitable Gift Fund, the donor receives an immediate tax-deduction for the contribution, the ability to make multiple gifts from one lump sum contribution, and the opportunity to make gifts all at one time or over a period of time.