Donor Advised Funds
Donor advised funds are individual endowments through which the person(s) or family who created the endowment determine the annual distribution. The recipient or beneficiary may change each year, or there may be multiple beneficiaries with each distribution. A donor advised fund offers the opportunity to easily create a low cost, flexible method for charitable giving as an alternative to direct giving or the costly administration of a private family foundation. Donors receive maximum tax advantages with the administrative duties and expenses passed on to the holder of the endowment (ie: Independent Catholic Foundation). Recipients must be approved by the Board of Trustees and must align with the teachings of the Catholic Church.
These are permanently restricted with an annual distribution as determined by the Trustees; all endowments have the same percentage distribution. Principal can not be distributed, except as required by law. The Foundation is advised each year who will be the beneficiary of the annual distribution and the Foundation mails the checks to them.
Provisional or Temporary Endowment:
An Endowment is created that allows the interest (annually) and up to and including the 50% of the original principal to be distributed. This has all of the tax and expense advantages to the donor as a permanent endowment. There are stipulations in place for minimum distributions and timing of same. Additionally, there may be provisions for different administrative fees. The details of each situation vary.
For more information, please contact the Foundation Office at 814-201-2080.