News

Donor advised funds explained

Mar 24, 2016
Clubs and individuals often explore the idea of establishing their own foundations. But many are discouraged by the time, financial cost or amount of energy needed to get it done. The Kiwanis International Foundation offers donor advised funds as an alternative.

A donor advised fund is easy to establish. Without the staffing and legal fees, it's also less expensive to set up than a private foundation. And because the fund is housed in the Kiwanis International Foundation, you get the maximum tax deduction available.

Kiwanians who set up a donor advised fund can recommend grants for specific purposes that are meaningful to them. A donor advised fund is a permanent, endowed fund available through the Kiwanis International Foundation to individual Kiwanians, as well as their families and Kiwanis organizations.

With a donor advised fund, a gift is made to our foundation—and then the donor recommends grant distributions to qualified charitable organizations. Donors also have the opportunity to name their funds. In fact, they often choose to honor or dedicate the fund to the memory of a loved one.

The minimum amount required to establish a donor advised fund with the Kiwanis International Foundation is US$10,000. The fund must reach a total of US$25,000 before grants can be awarded—to ensure that the fund is strong enough to support a significant annual disbursement. The grant distribution amount is determined by the Kiwanis International Foundation’s investment policies, and is currently set at five percent.

See how you can set up a donor advised fund in four simple steps, and find answers to frequently asked questions.

For more information, contact the Kiwanis International Foundation at grants@kiwanis.org. Or call 1-800-KIWANIS, ext. 155 (U.S. and Canada), or +1-317-217-6155 (worldwide).