Giving to C89.5 through your Donor-Advised Fund

Making a charitable contribution to C89.5 through your donor-advised fund is an excellent way to support the educational and cultural mission of the station. Advise your fund to make a grant to our partner 501(c)(3) organization – the C89.5 / KNHC Public Radio Association (tax ID: 20-5402402)

What is a donor-advised fund?

A donor-advised fund (DAF) is a type of giving program that allows you to combine the most favorable tax benefits with the flexibility to easily support your favorite charities. An increasingly popular charitable vehicle, DAFs are an excellent way to both simplify your charitable giving and facilitate your strategic philanthropic goals.

A donor-advised fund is somewhat like owning a mutual fund or a diversified portfolio from which you can donate principal and/or investment growth to your favorite charity, such as C89.5. The differences are: (1) the fund itself is a non-profit entity, sometimes called the “sponsoring organization”, which usually charges a fee to manage your funds, and (2) your investment in the fund is irrevocable, meaning you can never withdraw money from the fund for your personal use. Instead, you only advise the fund to distribute your money to charities of your choice, such as C89.5.

Donor-advised funds provide a flexible way for donors to pass money through to charities —an alternative to direct giving or creating a private foundation. Donors enjoy administrative convenience (the sponsoring organization does the paperwork after the initial donation), cost savings (managing your own foundation typically requires around 2.5% to 4% of its assets each year to run), and tax advantages by conducting their grant-making through the fund. Consult your financial advisor for more information on the pros and cons of donor-advised funds.

How does it work?

  • Find a sponsoring organization that has a donor-advised fund program (examples include Fidelity Charitable, Schwab Fund for Charitable Giving, or Vanguard Charitable Endowment Program)
  • Establish your donor-advised fund by making an irrevocable, tax-deductible donation to the sponsoring organization.
  • Decide on your investment allocation strategy (note: investment growth is tax-free)
  • Recommend a grant to the C89.5 / KNHC Public Radio Association (tax ID: 20-5402402)

What are the main advantages of a donor-advised fund?

  • Simplicity – The DAF sponsor handles all record-keeping, disbursements, and tax receipts.
  • Flexibility– Timing of your tax deduction can be separate from your charitable decision making.
  • Tax-efficiency – Contributions are tax-deductible and any investment growth in the DAF is tax-free. It is also easy to donate long term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
  • Family legacy– A DAF is a powerful way to build or continue a tradition of family philanthropy.
  • No start-up costs – There is no cost to establish a donor-advised fund. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).**
  • No transaction fees – Once approved, 100% of your recommended grant goes to your qualified public charity of choice.**
  • Privacy (if desired)  Donors may choose to remain anonymous to the grant recipient.

**Sponsoring organizations (of the donor-advised fund) generally assess an administrative fee on the assets and may require a minimum initial contribution. Fees depend on the sponsoring organization.

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