For advisors: Establishing a donor-advised fund with the Charitable Foundation can simplify and amplify giving

Donor-advised funds have become one of the most popular and flexible tools for charitable giving — and with good reason. These funds offer generous people a simple, tax-efficient way to support nonprofits doing great work in our communities, now and into the future.

At the New Hampshire Charitable Foundation, we steward an ever-increasing number of donor-advised funds for generous people, families and businesses. Many donors appreciate how donor-advised funds can streamline giving, foster family engagement, and serve as a launchpad for significant community impact.

When your clients establish a donor-advised fund at the Foundation, we aim to help them simplify and amplify their giving. While many commercial providers offer donor-advised funds, establishing a donor-advised fund at a community foundation offers a different kind of impact. Community foundations like the Charitable Foundation are nonprofit, mission-driven organizations. Donors who choose to work with the Foundation are making a commitment to support a shared purpose of making New Hampshire a community where everyone can thrive. They are provided the opportunity for a hands-on partnership with our staff to inform their giving, and the benefit of decades of local knowledge and expertise about the needs and opportunities in our communities. They also become part of a network of generous people who are committed to making New Hampshire better for all.

It’s a simple process for your client to establish a donor-advised fund at the Charitable Foundation. Here’s what you need to know about the benefits of doing so:

Simple set-up process

Whether your client is starting a new donor-advised fund or transferring one from a commercial provider, the process is easier than many expect:

• Set up the fund: our team of philanthropic advisors will work directly with you and your client to establish the fund and clarify their charitable goals.
• Make a contribution: Your client can make an initial contribution of cash or other assets – or, if transferring a fund from another donor-advised fund sponsor, can request a grant from their existing donor-advised fund to the Foundation.
• Complete the transfer: To transfer a donor-advised fund, your client designates the Foundation (and references the new fund) as the grant recipient. Before closing the original account, we recommend downloading the full grant and contribution history for future reference. Note that transfers between donor-advised funds are tax-neutral; these transactions and not taxable events.
• From there, we help your client make the most of their charitable giving — now and for generations to come.

Added value

What sets the Charitable Foundation apart is what we bring to the table beyond the basics:

• Decades of staff expertise on community needs and the work of New Hampshire’s nonprofit sector that inform strategic giving opportunities for our donors
• Personalized service from staff experienced in structuring complex gifts (e.g., appreciated stock, real estate, closely-held business interests, estate gifts)
• Opportunities for collaboration with other donors and access to educational information on issues important to our communities
• Our staff works in close partnership with people from nonprofit, business and public sectors on solutions to critical challenges facing our communities, including: childcare affordability and accessibility, housing and hunger, substance misuse and mental health, education and career pathways, environmental protection and civic health
• Family and corporate philanthropy services to foster long-term, multi-generational charitable engagement
• Administrative fees that are reinvested in the community, supporting local operations and amplifying the Foundation’s mission
• Direct access to local experts who can research and recommend nonprofit work aligned with your clients’ goals

Tax and administrative advantages

Donor-advised funds at the Foundation come with the same tax and administrative advantages as commercial providers, including:

• Online access for clients to make grant recommendations, view fund balances, contributions, and grant history
• Staff due diligence to ensure nonprofits recommended are in good standing and eligible to receive grants
• Full administrative support for tax receipts, recordkeeping and compliance
• Favorable tax deductibility for contributions, including gifts of cash, securities, and other assets

We look forward to working with you and your clients to make the most of their charitable giving. With a donor-advised fund as a cornerstone of their charitable giving, your client can begin to tap into the many ways the Charitable Foundation serves as a home for local giving, from strategic grant making to legacy giving and everything in between.

This report was compiled by New Hampshire Charitable Foundation staff with material provided by Embolden. This article is informational and educational in nature. It is not offering professional tax, legal, or accounting advice.

For more information about how the New Hampshire Charitable Foundation can help advisors help their clients with charitable giving, please contact Michael DeCristofaro, Foundation director of advisor relations at Zvpunry.QrPevfgbsneb@aups.bet or 603-225-6641 ext. 251.