Donor-Advised Funds

Donor-Advised Funds provide you with the greatest flexibility to meet your charitable goals. You receive a full tax deduction for an irrevocable gift, retaining the right to recommend grants to any nonprofit organization in the country from investment income, appreciation and/or the principal of the fund. Distributions are made in your fund's name, and you receive regular statements. You also have the right to name successor advisors to the fund.

The best reason to create a Donor-Advised Fund at the Hartford Foundation is to gain access to our program staff's expertise about grantmaking and the region's nonprofit community.

• The funds are simple to create.
• There are no start-up costs.
• Gifts to the funds are tax deductible at favored public charity rates.
• Donors make advisory grant recommendations; final review and approval rest with the Hartford Foundation.
• Administrative tasks (reporting, record keeping, correspondence, grant distribution, grant managing) are handled by the Hartford Foundation.
• While the grantmaking from a donor-advised fund needs to be anchored in the Greater Hartford region, grants can be made anywhere in the country.

Donor-advised funds are an excellent alternative to private foundations. If you are considering a private foundation, our staff can help you answer these questions to determine your best option:

• How much money will you devote to this fund?
• What kind of grants do you want to make?
• Do you know all the charitable beneficiaries you want to support, or are you interested in learning about, or even becoming involved with, organizations and projects that are new to you?
• What geographic area do you want to benefit?
• What assets do you plan to contribute, now or in the future?
• How comfortable would you be managing record-keeping and tax filings?
• Do you look forward to soliciting and reviewing grant applications, site visits and grant follow-ups? Would you be comfortable declining grant applicants?
• How much time can you and other family members devote to this endeavor each month? Each year?
• How do you expect to involve other members of your family?
• Do you want public credit for your grants? Or, anonymity?
• How important is it to you that you personally manage the investments of your fund?

Still unsure? Download a chart comparing donor-advised funds to other popular options (PDF, 63KB).