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Getting Started FAQ's
1. Where to start?
When you're ready to set up a charitable fund, contact Cheryl Elliott (President & CEO) or Jennie Balch Hale (Donor Services) at
(734) 663-0401 to discuss the many
types of funds we offer and to review the
types of assets that AAACF accepts. You are more than welcome to ask your professional
advisor to accompany you.
Most of our fund types are geared to specific charitable giving objectives. Non-endowed funds (including donor advised funds)
typically are used for current giving; donors can 'spend down' the fund balances. Those interested in permanent charitable
giving will look to our endowed gift funds; spending is limited to a percentage of the funds' balance (up to 5 percent) in
accordance with our Investment and Spending Policy.
(A PDF of this document is available under the Professional Advisor tab).
AAACF staff are ready to help you understand your choices and clarify your philanthropic intentions.
2. What kind of assets will AAACF accept?
AAACF accepts a
wide variety of assets, including cash, securities, life insurance, retirement assets,
real estate, tangible personal property, and more. If you or your financial advisor want more information about our Gift
Acceptance Policy,
click here.
3. How much does it cost?
Administrative fees for fund management depend on the type of fund you choose. For more information about our various fund
types, fund minimums and the fees we charge,
click here.
4. What is the advantage of a community foundation over a private foundation?
The tax benefits of gifts to a private foundation are more limited because such entities do not qualify for public charity status.
Also, it's much more costly and time consuming to create and administer a private foundation than it is to establish a gift
fund at AAACF.
A donor advised fund at AAACF will provide you with the same flexibility without the substantial legal, accounting, and
operational fees associated with private foundations. There are no minimum payout requirements, so donors can choose to
let their funds grow over time - or they can recommend grants of any amount, even invading the corpus of the fund to do so.
Plus, the fees we charge will be less than or equal to the 2% excise tax that the IRS levies on private foundations.
Click here to see how a donor advised fund at AAACF stacks up against a private
foundation.
5. What are the tax advantages?
As you know, tax considerations will vary according to assets. Generally speaking, your will be able to deduct up to 50
percent of your adjusted gross income (AGI) for cash gifts and up to 30 percent of ACI for gifts of highly appreciated
securities. The State of Michigan offers a Tax Credit for gifts to permanently endowed funds at community foundations.
Click here for more information.
6. What's involved in setting up a fund agreement?
A fund is officially established when you sign a fund agreement and assets are received.
Click here to preview sample fund agreements.
7. Can I preserve my anonymity?
Absolutely. A number of our funds carry names that shield the identities of our donors ( The Flying Red Horse Fund, The Vulcan
Fund, The Smallmouth Fund). You also have an opportunity in your gift fund agreement to specify whether you would like for
the grant distributions from your fund to be anonymous. You can also specify whether you want to be listed as a donor in our
Annual Report.
8. Can I make more gifts to the fund I establish?
Yes - you can make additional gifts of any amount at any time.
9. Can I establish more than one gift fund?
Many of our donors have established both endowed and non-endowed funds to accommodate their specific charitable interests.
The most popular type of non-endowed funds are donor advised funds; they're particularly flexible because the assets can be
'spent down.' Many of our donors choose to treat their donor advised funds as permanent endowment and voluntarily adhere to
our
Spending Policy, which is up to 5% of a fund's value established on an annual basis.
Others donors also named the foundation in their estate plans or used other
planned giving vehicles such as charitable trusts to ensure their wishes are met in perpetuity.
10. How often will I get information from AAACF about the fund I establish and the amount available for spending?
That's up to you. Most of our donors elect to receive a fund report annually, some bi-annually, and some quarterly. You
will have an opportunity to make this decision when you establish your fund.
11. What other donor services do you offer?
Serving donors is a cornerstone of AAACF's mission along with making grants and providing community leadership. Our
services range from helping donors choose the right type of fund to reflect their charitable giving objectives, refining their
giving strategies, and researching potential nonprofit recipients for distributions. We also provide donors with networking
opportunities, site visits, and opportunities to leverage their charitable dollars with other AAACF monies. For more information,
click here.
12. How does AAACF manage its assets?
The management of AAACF assets is overseen by the Foundation's Board of Trustees and Finance Committee in accordance with
the AAACF Investment and Spending Policy. Funds are invested through financial managers in a balanced portfolio. The
performance of our Investment Managers is reviewed regularly by the Foundation's Finance Committee
and our Investment Consultant. In addition, the Foundation's financial position is evaluated on an annual basis by an
independent audit. For more information on how we manage our assets,
click here.
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