CONTRIBUTIONS
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Q: |
What is the minimum contribution?
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The minimum initial contribution is $10,000. Subsequent donations can be for $500 or more.
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| Q: |
May I make a gift of securities? What value is placed on my gift?
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The Program accepts marketable securities, which are usually sold within three business days of receipt in the Program’s account. Two values apply:
- The donation amount, which you report to the IRS, will be the average market value of the securities on the day the Program receives them in good order.
- The proceeds amount, which is placed in your donor-advised fund account, equals the actual selling price of the securities minus brokerage and other fees associated with the sale. Due to market fluctuation, this value may be more or less than the donation amount.
We will report both values to you in writing and in the quarterly statement. You may also call a Program service associate for the information.
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| Q: |
Can I donate from my IRA to the Program for Charitable Giving now?
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Yes, you can contribute assets withdrawn from your IRA to the Program. Withdrawals from your IRA are taxable and are included as part of your ordinary income. If you do contribute to the Program, you can claim a charitable income tax deduction for the amount of the contribution in the year in which it is made (up to the IRS limits). Prior to making the contribution, you may want to discuss this decision with your tax advisor or attorney to ensure that these assets are not needed for you or your family.
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| Q: |
Can I leave assets in my IRA to the Program for Charitable Giving?
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Yes, you can leave your IRA or other retirement accounts to the Program for Charitable Giving. The most common way to do this is to name the Program as the primary beneficiary of your IRA or retirement account.
If you wish, you may inform the Program of your intentions and provide account information. Simply, complete a Program Account Form and indicate that the contribution will be made through your estate. This ensures that account information and the names of donor-advisors are included in the Program's records.
The advantage of this strategy is that your estate will receive an estate tax charitable deduction for the amount of the bequest, and the charity will have full use of the contribution for its programs since it does not pay income taxes. Prior to making the contribution, you may want to discuss this decision with your tax advisor or attorney to ensure that these assets are not needed for you or your family. Return to Top
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| Q: |
Why not contribute directly to the charity of my choice?
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| A: |
The Program for Charitable Giving offers several features that may be relevant and advantageous to you in achieving your charitable giving objectives and strategies.
Specifically, the Program offers you:
- The ability to take a tax deduction (up to the allowable IRS limits) in the year of the gift.
- The opportunity to make your grant decisions over a number of years. You decide when you want to support the organizations you feel most strongly about.
- The ability to provide support to multiple nonprofits from one block of stock.
- The potential to grow your gift within managed investment pools to increase the amount you ultimately contribute. This strategy is especially advantageous for philanthropists who seek current tax advantages yet have high charitable aspirations and a longer investment time horizon.
- The convenience of managing your charitable giving through one account that provides quarterly statements documenting all account activity.
- The ability to name multiple advisors and contributors to your account, promoting charitable giving within your family or business.
- A resource to assist you in researching charitable organizations that may be compatible with your charitable mission or objectives.
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| Q: |
Is there a minimum account balance?
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Yes. The minimum account balance is $2,500 per investment pool. Donors whose accounts fall below the minimum are notified prior to any action by the Program.
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GRANTS
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| Q: |
How do I support charities of my choice?
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You make a grant recommendation for a distribution from your donor-advised fund account. Grants may be made to U.S. public charities, private operating foundations, and certain governmental entities. As a result of the Pension Protection Act of 2006, some supporting organizations are no longer eligible for a Program grant. The minimum grant recommendation is $250. To review the charitable causes supported by the Program, click here.
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| Q: |
May I make a grant recommendation from my account as soon as it’s established?
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Yes, you may make a grant recommendation at any time.
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| Q: |
How long will it take for my recommendation to be considered?
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All grant recommendations are reviewed by the professional staff of the Program.
The length of the review process is contingent upon:
- Thoroughness of information provided with the grant recommendation (federal tax ID number/EIN for charitable organization, mailing address, etc.).
- The Program’s previous experience with the charitable organization recommended.
- The dollar amount of the recommended grant:
Grant recommendations of more than $10,000 and up to $100,000 require the approval of the president. Grant recommendations of more than $100,000 require the approval of the Board of Directors.
We anticipate reviewing all grant recommendations and notifying donors within five business days of receiving the grant recommendation.
You will receive a copy of the letter that will accompany the grant disbursement to the recipient organization. You will also receive a written explanation if a recommendation is not approved.
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| Q: |
If my grant recommendation is approved, how will I be recognized?
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The Program will send a donation to the charity with a letter that recognizes you according to your wishes. The Program will name you as the advisor for the grant, provide the name of the account, and provide your address, unless you wish to remain anonymous. You will receive a confirmation of this gift as a copied party on the letter to the charity.
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| Q: |
Why would a grant recommendation be turned down?
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The Program makes every effort to honor grant recommendations. Remember that grants must meet the following criteria:
- The purpose of the grant must be for a designated charitable cause:
- Human relief and support services
- Religion
- Education
- Medical and scientific research
- Civic and cultural development
- Environmental and ecological preservation
- Other innovative charitable undertakings
- The grant recipient must be a recognized U.S. public charity, private operating foundation, or qualified governmental entity and directly support the Program's designated causes. Please note that some supporting organizations are not eligible for a grant.
- The recommendation cannot be made to fulfill a previous pledge.
- The recommendation may not be in exchange for a return benefit such as an in-kind token of appreciation, admission tickets, etc.
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| Q: |
Am I required to distribute 5% from my donor-advised fund account each year?
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The Program requires that the total dollar amount of grants issued by the Program is equal to at least 5% of the Program’s total assets (based on a five-year average). In 2006, the Program made grant distributions of over 20% of the average assets held by the Program in that year.
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GENERAL GIVING FUND
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| Q: |
What is the General Giving Fund of The T. Rowe Price Program for Charitable Giving?
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The Program has established a General Giving Fund, which accepts contributions on an unrestricted basis. This fund will be used by the Program in making grants according to Program guidelines. It may also be used to cover administrative and overhead expenses of the Program as a whole. Like all gifts made to the Program, donations to the General Giving Fund are irrevocable and donors realize their allowable charitable tax deduction in the calendar year in which the donation is made. No donor interest in regard to investments or grants is established.
The General Giving Fund also receives assets from donor-advised fund accounts where the advisory rights have lapsed or terminated; from donor-advised fund accounts that fall below the $2,500 minimum (for an extended period); and accounts from which no grant activity has been recorded within five years.
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| Q: |
Why would I consider a gift to the General Giving Fund?
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The General Giving Fund provides you with an immediate outlet or direction for your charitable donation to the Program. This strategy works best for individuals without a general interest in how their donation will be put to use or who do not have the time or desire to investigate and research appropriate charitable outlets. Grants using assets donated and placed in the General Giving Fund are determined by the Board of Directors of the Program.
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INVESTMENT POOLS
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| Q: |
What investment options are available?
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The Program offers five investment pools, each with a specific risk/return objective.
The pools are composed of no-load mutual funds managed by T. Rowe Price
Associates, Inc., and T. Rowe Price International, Inc.
The T. Rowe Price investment
approach strives to achieve superior performance while considering risks incurred
versus potential rewards. Click here for more detailed information on the investment
pools. When you open your donor-advised fund account, you select one or more
pools in which to invest your contribution. You can request a change in your
investment selection at any time with no fee.
Donor-advisors associated with a T. Rowe Price Program for Charitable Giving
account with a balance of $3 million or above may request separate portfolio
management for their fund account. This service offers an opportunity to recommend
the account be invested in individual securities, bonds, and mutual funds. Click here
for more information.
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| Q: |
How do I find out how the investment pools are performing?
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The Program updates the pool performance after the end of each quarter and posts it on the Program’s Web site. Click here to go to the most recent pool performance.
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FEES
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| Q: |
What are the fees associated with a donor-advised fund account?
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The Program assesses an annual administrative fee on all donor-advised assets to
help cover operating and administrative expenses. The prorated assessment is
made on a daily basis and is reflected in the net asset value of each investment pool.
Annual administrative fees are as follows:
The Program has established service agreements with T. Rowe Price Associates,
Inc., to manage the investment pools operated for the benefit of the Program and its
donors. Investment returns are net of expenses of the underlying mutual funds.
Annualized expense ratios for the pools have generally ranged from 0.35% to 0.75%.
The total annual fees are the sum of the administrative and investment fees.
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BOARD OF DIRECTORS
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| Q: |
What are the responsibilities of the Program’s Board of Directors?
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As a 501(c)(3) organization, the Program has a Board of Directors with ultimate authority over investment and grant decisions, including the right to approve grant recommendations and investment allocations.
Click here for Board of Director biographies.
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