How the Program Works
The Program takes care of administration so your clients can focus on giving to their favorite causes. It couldn't be simpler or more convenient.
Your client:
- Makes an initial donation (irrevocable) of $10,000 or more to the Program — in cash or marketable securities.
- Receives a full current-year income tax deduction (up to IRS limits). Amounts beyond the limits may be carried over to future years. Capital gains taxes are avoided on gifts of long-term appreciated securities.
- Names the donor-advised fund account — for self, family, loved one, company name, or special interest.
- Invests contribution among six investment pools — professionally managed by T. Rowe Price to potentially grow contributions.
- Recommends grant distributions on his or her own timetable to support public charities of choice.
Additional features make the Program even more attractive:
- Professional advisers may be named as secondary donor-advisors on the Contribution Agreement form and can oversee the account on behalf of the client.
- Friends, family members, and others can be named as successors to carry on the charitable legacy. Or your clients can name beneficiary organizations to receive account assets at their death.
- Fund accounts involve low minimums and low fees, including a $10,000 initial donation, subsequent donations of $500 or more, grant amounts of $250 or more, minimum account balance of $2,500, and a low maximum administrative cost of 0.50% of account assets. Administrative fees are reduced for larger account balances.
