Types of Funds

No two clients have the same charitable giving needs or goals. We will help you find solutions that are most effective in meeting your clients' long- or short-term charitable objectives, while also addressing their financial- and estate-planning concerns.

Charitable Checking Account℠ Service
– offers a donor-directed vehicle for handling primarily temporary, charitable funds for individuals, companies and nonprofit organizations

Endowed Funds
– provides financial support for your favorite charities now and into the future and gives you the degree of control you desire in distributing your fund’s income

Alternatives to a Private Foundation
– including Family Foundation Plus℠ and Family Foundation Plus℠-Advised, offers more cost-effective alternatives that also benefit from the Foundation’s investment, administrative and charitable giving support


CHARITABLE CHECKING ACCOUNTS℠ – DAYTON FOUNDATION DEPOSITORY, INC.

The Dayton Foundation’s Charitable Checking Account Service (Dayton Foundation Depository, Inc.) offers a donor-directed vehicle for handling primarily temporary, charitable funds for individuals, companies and not-for-profit organizations.

Your clients may direct distributions from these funds to any IRS-approved charities in the Greater Dayton Region or throughout the U.S. The Charitable Checking Account Service offers your clients tax advantages, flexibility, donor direction and convenience when doing their charitable giving.

Flexibility

By using Charitable Checking Accounts, your clients may direct grants to the charities of their choice, whether local or outside the region. Deposits (gifts) are made into your clients' accounts and are tax-deductible on the date the deposits are made. Withdrawals (gifts to your clients' chosen charities), however, may be made at any time, upon their direction.

Tax Advantages

Dayton Foundation Depository, Inc., the legal entity for the Charitable Checking Account Service, is a public charity. Gifts into Charitable Checking Accounts qualify for maximum deductibility for tax purposes. The Internal Revenue Service allows gifts of appreciated property to public charities to be deducted at full market value.

Obviously, the savings from your clients' tax deductions are greater when their tax bracket is higher. If they have investments that have declined in value, your client may consider selling them, taking advantage of deductible losses where possible, and giving the cash proceeds in order to enjoy maximum tax savings from charitable gifts.

Donor Direction

For many clients, the ability to direct their charitable distributions as frequently as they choose and to the organizations and in the amounts that they select is a great benefit. Plus, Charitable Checking Accounts require no minimum balance.

Convenience

Giving through a Charitable Checking Account simplifies the giving process for your clients. The Foundation makes charitable distributions, based upon their direction, ascertains that the charities are IRS-approved, provides the gift acknowledgments required by the IRS, and generally simplifies the bookkeeping and tax-reporting burdens of multiple gifts by providing quarterly and end-of-year statements of account activity.

To open a Charitable Checking Account online now, click here.

Acrobat PDF fileMore information about The Dayton Foundation’s Charitable Checking Account℠ Service is available in our brochures, The Charitable Checking Account℠ Service and in Guidelines for Using Your Charitable Checking Account℠.

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ENDOWED FUNDS

Endowment funds provide financial support for your clients' favorite charities now and into the future and give them the degree of control they desire in distributing the fund’s income.

There are five types of endowment (long-term) funds:

Unrestricted Funds. By establishing an unrestricted fund or by designating a portion of a fund for unrestricted use, your clients place their trust in us to use our years of experience and community knowledge to determine where grant money is needed most.

Unrestricted funds provide the most flexibility for making grants. They enable the Foundation to help address our region’s changing needs by increasing discretionary grant awards and undertaking new initiatives. These funds are vital for the support of many local not-for-profit organizations that enhance the quality of life in our community.

Field-of-Interest Funds. If your clients have a particular areas of interest – such as children, education, the arts, health or the environment – but want us to use our discretion to determine where community need is greatest, a field-of-interest fund can be an excellent option.

Donor-Advised Funds. With a Donor-Advised Fund, your clients are actively involved in the distribution of their gifts by making periodic grant recommendations to support different organizations and activities that are of interest to them.

Click here for more about Donor-Advised Funds.

Donor-Designated Funds. Your clients may designate specific agencies or purposes to receive their gifts. This allows them optimum control over their distributions, guaranteeing income for their favorite charity in perpetuity. If their designated organization ceases to exist or loses its not-for-profit status, we will help choose a similar beneficiary that can best carry out your client’s original intent.

Click here for more about Donor-Designated Funds.

Scholarship Funds. Your client may choose to encourage education by providing scholarships, based upon academic interest or other criteria, to deserving students. They also may select the guidelines for candidate selection, requirements and award use. Many such funds utilize our experienced and capable staff support to administer and award the scholarship.

Students and their parents also can search for available Dayton Foundation scholarships through ScholarshipCONNECT, our online scholarship directory.

More information about establishing a scholarship fund is available in our brochure Scholarship Funds.

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ALTERNATIVES TO A PRIVATE FOUNDATION

The Dayton Foundation offers several alternatives to establishing a private foundation to help your client accomplish his or her long - and short-term charitable giving goals.

Family Foundation Plus℠ (New Foundation). The Dayton Foundation’s Family Foundation Plus is a first-in-the-nation service that offers many of the advantages of a private foundation, plus all of the benefits of a community foundation.

With a minimum threshold of $250,000 and no start-up expenses, Family Foundation Plus is a more economical and less burdensome way to establish a family foundation. With Family Foundation Plus, your client can benefit from:


  • donor-directed giving to qualified charities of your client’s choice,
  • family involvement through generations,
  • no separate annual 990 filings,
  • more favorable tax treatment, including significantly greater tax deductibility of donations
  • the ability to give anonymously, if your client so chooses, and
  • no separate accounting or legal fees, among other benefits.

Similar to a private foundation, a Family Foundation Plus fund is invested and participates in market growth. Compare all of the benefits for your clients here.

In addition, Family Foundation Plus donors have the added benefit of the Foundation’s experienced staff – grantmaking, investment, administration, charitable gift expertise – to assist them at a fraction of the cost of administering a private foundation.

Click here for a scenario illustrating the benefits of opening a Family Foundation Plus℠ fund.

Acrobat PDF fileMore information about Family Foundation Plus is available in The Dayton Foundation’s brochure, Better Than a Private Foundation: Family Foundation Plus.


Family Foundation Plus℠—Advised (Existing Foundation Transfer). Offering many of the same benefits as Family Foundation Plus, Family Foundation Plus—Advised is an advised fund option, enabling individuals with current private foundations to roll them into this donor service vehicle. Benefits of this gift option include:

  • family involvement through generations,
  • added tax benefits,
  • no separate 990 tax filings,
  • lower cost,
  • increased flexibility,
  • the ability to give anonymously, if your client so chooses, and
  • the ability to determine annual disbursements, unconstrained by a minimum 5 percent payout requirement, among other benefits.


Acrobat PDF fileMore information about Family Foundation Plus—Advised is available in The Dayton Foundation’s brochure, Better Than a Private Foundation: Family Foundation Plus—Advised.


Supporting Organizations. Supporting Organizations are excellent alternatives to private foundations. They have their own board that makes its own decisions and have their own 501(c)(3) tax-exempt status from the IRS.

Supporting Organizations (frequently begun as family foundations) give donors many of the advantages and controls of a private foundation, but with few of the disadvantages and with all of the advantages of public charity status.

Through this affiliation, they may avoid being subjected to the rules and compliance requirements of private foundations and better utilize resources for greater charitable purposes. Supporting Organizations give individuals, families and organizations access to The Dayton Foundation’s institutional experience and its well-established practices, policies and procedures.

The benefits of establishing a Supporting Organization include:
• Maintain client involvement and a high degree of control
• Preserve your clients' service to the community through their own family foundation
• Conduct charitable giving effectively and with no required annual minimum distribution
• Maximize tax advantages/minimize income taxes; pay no excise taxes
• Gain access to our knowledge of nonprofit organizations and community needs
• May retain their own legal counsel, tax counsel and fund managers
• Access our technical support, as needed

Donor-Advised Funds. See above description.

 

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File date: 9.18.14

HERE TO HELP

Joe Baldasare

“Scholarship funds are an excellent way to honor a special achievement or memorialize a loved one. The Foundation manages more than 120 scholarship funds for donors across the Greater Dayton Region. Contact me.”
Joe Baldasare, vice president, Development, at (937) 225-9954

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