Fax: (212) 714-0303 fjc@fjc.org
Capaciteria.org - The Nonprofit Capacity Resource Index
FJC Programs
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
How Do FJC Designated Fund Accounts Work?
There are two types of FJC Designated Fund Accounts:
- Individual DFA: established by an individual to support a specified organization.
- Collective DFA: established by, or on behalf of, a group of individuals who wish to raise funds to support a specified organization.
If you are not sure which Designated Fund Account is best suited to help you meet your philanthropic goals, please feel free to contact our office and an FJC representative will be happy to assist you.
Individual DFA
At the time you establish a DFA is established, the Authorized Signatory will be asked to name the organization for which the distributions from the account will be designated. At the time FJC receives the account opening documents, we will verify that the organization is an eligible tax-exempt charity.
The initial contribution of $5,000 or more, and all future contributions made to the account, will be invested based on the account’s Investment Allocation. The funds will continue to grow, tax free, so there is even more money available for distributions. FJC will issue a tax receipt for the initial gift and all subsequent contributions made to the account.
Additional contributions may be made to the account at any time. There is no minimum amount for additional contributions. The Authorized Signatory may request a reallocation of the account holdings three times each calendar year, subject to FJC’s approval.
Grant recommendations may be submitted via the secure FJC DonorWeb, email, 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 the Authorized Signatory a copy of the grant distribution letter for each distribution made from the account. Click here to see a sample of the standard transmittal letter sent to an organization. Letters can also be adjusted to reflect donor anonymity.
FJC has one of the most competitive and simple fee structures. The DFA 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 at a rate of 1/4 of 1% and will be clearly outlined on the account's Quarterly Statement of Activity. Administrative fees are reduced for account balance in excess of $3 million. There are no transactional fees, balance requirement fees, or hidden charges – simply the annual fee based on your account balance.
Collective DFA
Once the Authorized Signatories on the account and the organization the funds will be designated for have been selected, the Collective DFA Letter Agreement and Application will be submitted to FJC. Upon the receipt of your account opening documents, FJC will confirm that the named organization is a qualified organization.
There is no initial contribution required to establish the account; however, there is a transactional fee of 2% assessed on all contributions received to help cover the administrative costs of processing third party contributions. Individuals, corporations and other foundations are free to make contributions to the account at any time. There is no minimum amount for contributions and all donors will receive a receipt as required by the Internal Revenue Service. The account will also 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 at a rate of 1/4 of 1% and will be clearly outlined on the Quarterly Statement of Activity from FJC.
Distribution requests may be submitted by the Authorized Signatories on the account via the secure FJC DonorWeb, email, 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 the Authorized Signatory a copy of the grant distribution letter for each distribution made from the account. Click here to see a sample of the standard transmittal letter sent to an organization. Letters can also be adjusted to reflect donor anonymity.