Just as each of your clients has a unique plan to meet their specific goals, each of your philanthropic clients needs a unique charitable giving plan. For example, for some clients, giving shares of highly-appreciated stock consistently every year to their fund at the Omaha Community Foundation makes the most sense for their charitable goals and their mix of assets. For other clients, leaving a bequest to the community foundation to support specific areas of interest is the best fit for the client’s financial situation and community priorities.
We offer charitable giving vehicles to meet a wide range of your clients’ needs. In many cases, a single client can benefit from setting up multiple funds of different types.
Here’s a quick primer on a few of the most popular fund types.
Donor Advised Fund
A Donor Advised Fund enables your client to establish a specific account for charitable giving. Your client makes tax-deductible contributions of cash (or, ideally, stock or other highly-appreciated assets) to the fund, and then recommends grants to nonprofits of their choosing. If your client is looking at a DAF for the first time, consider reaching out to Katie Vogel, OCF Donor Services Senior Advisor.
Field of Interest Fund
Clients who want to target their giving to specific areas of community need (such as education, health, environment, or the arts) can set up a Field of Interest Fund to establish parameters for grantmaking under the ongoing guidance and expertise of our Donor Services and Community Interest teams.
Designated Fund
A designated fund allows a client to direct giving to a specific agency or purpose. Over time, our team manages the distributions from the fund according to the terms established by your client.
Agency Fund
An agency fund is similar to a designated fund, however, the source of the initial contribution is the beneficiary nonprofit organization itself, not a donor or donors as is the case with a designated fund. If your client serves on boards of directors of organizations, they’d likely be interested in learning more about agency funds.
Indeed, if you represent nonprofit organizations or their board members in your practice – or if you serve on a nonprofit board — it’s helpful to keep in mind that organizations frequently establish agency funds at OCF to set aside endowment reserves. We are adept at navigating the specific accounting standards that are unique to this type of arrangement. Talk to Donor Services Advisor Nathan Morgan, with more than 30 years of nonprofit experience to discuss the benefit of these funds for donors and organizations.