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Faq
DFA programs
DFA Menu Options:
- What is an FJC Designated Fund Account?
- How Do FJC Designated Fund Accounts Work?
- How Do I Establish a Designated Fund with FJC?
- What Are the Advantages to Opening a Designated Fund Account with FJC?
- Designated Fund Account FAQ
The FJC Designated Fund Account FAQ
DFAs allow donors to support one organization in perpetuity with the same tax benefits and ease of giving as those offered by a donor advised fund. FJC’s Collective DFA structure allows groups to raise money in support of the specified organization of their choice. FJC will accept tax-deductible donations designated for the DFA, provide tax receipts to donors, manage the funds maintained in the account, and complete all due diligence and tax reporting requirements on distributions made from the DFA.
Similar to donor advised funds, funds in DFAs are invested in various options FJC has available to donors.
What fees are involved for FJC’s services?
Individual DFAs are charged an administrative fee of just 1% annually, based on the average daily balance of the account.
Collective DFAs are charged the annual daily balance fee and a one-time additional 2% fee for all funds received to help cover the administrative costs of processing third party contributions.
What types of assets can be contributed to a Designated Fund Account maintained at FJC?
Contributions to a DFA will be accepted in the form of cash, via credit card or appreciated securities (including mutual funds), at any time for any dollar amount.
FJC can also accept, with prior approval, other forms of property, such as stock in privately held companies, “144” stock and other restricted securities, and interest in real estate and other properties. Please contact FJC to discuss contributions of this nature.
Are there any limitations on the number of grants which can be made from a Designated Fund Account?
Authorized Signatories on the account may recommend any number of grants from the DFA. Distributions are limited to the organization specified as the Designee at the time the account was established and all distributions must be for a minimum of $100.
Can the investment choices for a DFA be changed?
An Authorized Signatory can recommend a reallocation of the account balance among FJC’s investment choices three times each calendar year. Special investment options are available for balances in excess of $1 million, subject to FJC’s review and approval. FJC may alow the investment of account funds to be managed by investment managers outside of our in-house options.