Create a Lasting Legacy with a Donor-Advised Fund

In today’s philanthropic landscape, many families are looking for meaningful ways to give back to their communities while instilling a sense of generosity and social responsibility in the next generation. The Community Foundation of Herkimer and Oneida Counties offers a creative solution through its donor-advised funds, which are specifically designed for individuals and/or families who wish to actively engage in charitable giving. For businesses looking to give back, the organization also offers corporate donor-advised funds.

What is a Donor-Advised Fund?
A donor-advised fund, also known as a DAF, is a versatile and straightforward way for individuals, couples and families to manage their charitable giving. With an initial charitable contribution, families can easily establish their fund and start recommending grants to their favorite nonprofit organizations. Unlike private foundations, which often require extensive administrative work and legal oversight, a donor-advised fund through the Community Foundation is a turn-key solution that simplifies the process, allowing families to focus on giving without having to deal with the burden of paperwork and technical details. 

"People focus a lot of energy on organizing their personal finances, so why shouldn’t they do the same with their giving? Especially if they can do it in a tax efficient way that helps them,” says Nick Grimmer, director of giving strategies at the Community Foundation. “These [Donor-Advised Funds] make giving simple. Tax time can be a burden in some ways with trying to remember the charities you gave to over the last year, but with a donor-advised fund, you need to do none of that. All you have is one document from the Community Foundation that says ‘here's all the places that you gave to and the money that was put into your fund’ and that's the singular tax deduction. For people with a complicated and busy life, it's just super efficient and low cost.”

Why Choose a Donor-Advised Fund?
Tax Advantages – Initial gifts used to create a fund (and any additional gifts) will receive the maximum charitable tax deduction allowed by law.

Gain a Partner in Giving – The Community Foundation’s experienced team is knowledgeable about local nonprofit organizations and community needs to help inform giving. DAFs allow advisors on the fund to decide where philanthropic dollars go, putting the donor in control of what causes and organizations the fund will support. The Community Foundation also handles all administrative work such as grant checks, gift receipts, letters and more for the fund.

Simplicity – A fund can be established by signing a simple fund agreement document and making an initial gift of cash, securities or other assets. The donor chooses the fund name and designates advisors to manage the fund. Those who prefer to keep their giving private may also choose to remain anonymous.

Investment – Upon creation of a fund, the donor will choose one of the Foundation’s impressive investment options to grow the fund over time. Donor-advised funds carry no investment risks—the Community Foundation manages all investments, compliance and reporting, ensuring that families can focus on their charitable passions.

A Legacy of Giving
With a remarkable history of 70+ years investing in the community and managing over $200 million in charitable assets across 500+ funds, the Community Foundation of Herkimer and Oneida Counties is a trusted partner in philanthropy. Over a quarter of these funds are ones that were established by families, reflecting the growing interest among creating a lasting family legacy through charitable giving.

"Our donor-advised fund has far exceeded our expectations, not only through the investment returns but also with the administration of our grantmaking,” said fundholders Ron and Sheila Cuccaro. “The staff at the Community Foundation have helped us to align our philanthropic goals with the pressing needs of our community, as well as helping us to evaluate the impact of our grants. The Community Foundation is a valuable asset for donors and for our community as a whole."

One other perk of these funds is that the donor has the ability to grant to any nonprofit—there is no geographic restriction on giving. 

“As long as it’s a not-for-profit entity, college or university, or town or village, you may make grants to that organization from your fund,” said Grimmer.

While donor-advised funds are a key offering, the Community Foundation offers various other fund types, including scholarship funds, field-of-interest funds, and memorial funds, among others. Each serves a unique purpose, ensuring that there’s an avenue for everyone, no matter their financial status or philanthropic goals. 

For more details on donor-advised funds, visit foundationhoc.org/createafund, or contact Nick Grimmer, director of giving strategies, ngrimmer@foundationhoc.org. 

Article originally published in the Daily Sentinel on October 23, 2024.