Donor Advised Funds
An FJC Donor Advised Fund is a charitable vehicle allowing you to recommend distributions to the qualified tax-exempt organizations of your choice at any time you choose. You receive immediate charitable deductions when you open and make additional contributions to your FJC account.
An FJC Donor Advised Fund permits you to think about where you want to give without the pressure of government or self-imposed guidelines for deductions for charitable distributions. You can recommend how your funds are invested, from FJC’s wide selection of investment options, to optimize the dollars you have to give to charity.
Establishing a Donor Advised Fund
How Does an FJC Donor Advised Fund Work?
Your establishing contribution, and all future contributions made to your account will be invested based on your account’s Investment Allocation. Depending on your investment’s performance, your funds will continue to grow, tax free, so you have even more money available for distributions. FJC will issue you a tax receipt for your establishing gift and all subsequent contributions made to your account per Federal requirements.
You are free to make additional contributions to your account at any time. There is no minimum amount for additional contributions. You may request a reallocation of your account holdings three times each calendar year, subject to FJC’s approval.
Grant recommendations may be submitted via our Donor Portal, e-mail, fax, or postal mail at any time. There is no minimum or maximum number of distributions allotted for a calendar year. There is a $100 minimum per distribution. FJC will send you a copy of the grant distribution letter for each distribution made from your account. Letters can also be adjusted to reflect donor anonymity.
Distributions from your donor advised fund can only be made to qualified tax-exempt organizations, or other qualified charities as approved by FJC. Please see the Summary of Procedures and Rules for Donor Advised Funds for a summary of the restrictions and limitations on donor advised fund distributions.
FJC has one of the most competitive and simple fee structures. Your donor advised fund will be charged an administrative fee of just 1% annually, based on the average daily balance in the account. Fees are posted to the account on a quarterly basis and will be clearly outlined on the Quarterly Statement of Activity you receive from FJC. Administrative fees are reduced depending on your account’s balances. There are no transactional fees, balance requirement fees, or hidden charges – simply the annual fee based on your account balance.
Advantages of a Donor Advised Fund:
Avoid Capital Gains Taxes
Your contributions of appreciated securities (including mutual funds) or other property, held for at least one year, are deductible at their full fair market value. You pay no capital gains tax on the appreciation, and the full amount of the appreciated value is available for charity.
As an independent foundation, FJC offers a larger and more diverse selection of Investment Options for its Donor Advised Funds than most other organizations. In addition to investment choices managed by leading financial institutions, FJC offers a unique investment option - the FJC Agency Loan Fund. The Agency Loan Fund provides loans at market interest rates to credit qualified charitable organizations with limited access to other credit sources.
Low Establishing Contribution
FJC requires only a $5,000 establishing contribution for both individual and corporate donor advised funds. Some other donor advised funds require $25,000 for individual funds and $100,000 for corporate funds.
FJC offers a special opportunity not available from most community foundations or donor advised funds. FJC can honor grant recommendations to pre-approved overseas charities and domestic organizations that have not yet received their tax-exempt ruling. FJC will work with the recipient organization to complete our application, agreement and reporting requirements.
No Minimum Subsequent Contributions
Make additional contributions whenever you want, at whatever value you want. FJC does not require you to make annual contributions, nor do we require you to maintain a minimum balance in your account. Third parties can make contributions to your account at any time and in any amount. This activity is limited on donor advised funds; high volumes of third party contributions on a regular basis will require the fund to restructure and become a Collective Giving Fund.
Quick and Easy Grant Procedures
FJC has a low minimum grant recommendation amount ($100) and typically processes grant recommendations within 10 business days. Please note, certain recommendations may require additional research, which will extend the processing time.
Authorized Recommenders on the Fund may submit grant recommendations via e-mail, online using the FJC Donor Portal, or in writing using your customized Grant Recommendation Form, which you send in by postal mail or fax. Please note: we cannot accept recommendations over the phone.
FJC Gift Certificate Program
You may request FJC Gift Certificates, for $100 or more. Recipients of the certificate can then recommend a distribution to the qualified charity of their choice.
Involve Future Generations
You may designate Successor Recommenders to assume the role of a Recommender at the time of your death, or designate a final distribution of funds to the charities of your choice once no eligible Recommenders exist on the account.
Tips About Grantmaking
You may recommend grants to any qualified tax-exempt organization, or qualified religious institution, in good standing with the IRS. Distributions can also be made to international charities that meet due diligence requirements and are approved by FJC for distributions on an agreement and reporting basis.
You may recommend any number of grants from your Fund during the year. The only requirement is that each grant recommendation is for a minimum of $100 and you have enough funds in your account to honor the recommendation at the time it is submitted.
FJC will contact you if your recommendation does not meet the minimum amount, if there are insufficient funds in your account, or if FJC has any other questions or concerns regarding your recommendation.
Please note that we ask you to allow ten (10) business days to process eligible requests, but we generally process requests within about a week.
FJC cannot honor the following recommendations from your Fund:
Pledges - FJC cannot honor pledges that you have made to an organization. This is a personal obligation that you have entered into and cannot be honored through your FJC Donor Advised Fund. FJC can honor solicitation requests.
Tuition - No form of tuition, or the enrollment fees for extracurricular activities, can be paid from your Fund. If a distribution to a school is submitted without a specific designation, FJC will confirm with the school, in writing, that the funds received will not be applied to the tuition of any particular individual.
Gift Intended for the Benefit of One Named Individual - FJC cannot honor recommendations for gifts that will benefit one named individual. For example, “Please apply this gift towards the tuition of John Smith.”
Gifts, however, can be designated for funds being raised by a particular individual for an event. For example, “This gift is designated for Jane Smith’s participation in the Race for a Cure.”
Bifurcated grants - like all other donor advised funds, FJC will not distribute funds for the tax-deductible portion of a dinner ticket to, for example, a fundraising gala.
If you are not sure if a gift qualifies for distribution from your FJC Donor Advised Fund, please contact our office for clarification.