How to set up a Donor-Advised Fund for Focus Foundation
Setting up a DAF
DAF offers a flexible and tax advantageous solution to supporting the causes that matter most to you. We’re here to help you navigate this process, ensuring your values are understood and giving you a voice in how your contributions make a lasting impact on your community.
A quick guide to setting up a Donor-Advised Fund
Choose a sponsoring organisation
Research: Select a sponsoring organisation that manages DAFs. Examples include community foundations, financial institutions, and national charities.
Compare Fees and Services: Look at the fees, investment options, and services offered by different sponsoring organisations to find the best fit for your needs.
Open your Donor-Advised Fund
- Initial Contribution: Make an initial contribution to your DAF. This can be in the form of cash, stocks, or other assets. The minimum contribution amount varies by sponsoring organisation, typically ranging from £5,000 to £25,000.
- Immediate Tax Deduction: You’ll receive an immediate tax deduction for your contribution, even if you decide to recommend grants at a later date.
Manage and grow your fund
- Investment Options: Choose how you want your fund to be invested. The sponsoring organisation will manage the investments, allowing your fund to grow tax-free.
- Additional Contributions: You can make additional contributions to your DAF at any time, receiving further tax deductions.
Recommend grants to Focus Foundation
- Grant Recommendations: Recommend grants from your DAF to Focus Foundation. You can recommend one-time grants or set up recurring grants.
- Approval Process: The sponsoring organisation will review and approve your grant recommendations, then disburse the funds to Focus Foundation.
Inform Focus Foundation
- Notification: Let Focus Foundation know about your grant. This helps them acknowledge your generosity and plan for the future.
- Recognition: Focus Foundation may offer recognition for your support, such as including your name in their donor listings or annual reports.
Benefits of a Donor-Advised Fund
- Tax Efficiency: Receive an immediate tax deduction and grow your fund tax-free.
- Flexibility: Make grants to Focus Foundation at any time, allowing you to support their work when it’s most needed.
- Legacy: Create a lasting impact by supporting Focus Foundation’s mission over the long term.
By setting up a Donor-Advised Fund, you can make a significant and lasting contribution to Focus Foundation. If you have any questions or need further assistance, please consult with a financial advisor or the sponsoring organisation.