For your convenience, here are the answers to questions your clients may ask you about donor-advised funds and The T. Rowe Price Program for Charitable Giving.

What makes the Program a donor-advised fund?
A donor-advised fund, such as The T. Rowe Price Program for Charitable Giving, is a tax-exempt entity approved by the IRS as a 501(c)(3) organization. It offers a convenient and cost-effective way to increase philanthropy in the United States by receiving contributions from individuals and corporations. Then, based on the advice of its donors, the fund invests those contributions — so they may potentially grow over time — and makes grants to qualified public charities.

What is the minimum contribution?
The initial, irrevocable contribution is $10,000 or more. Subsequent donations may be as low as $500.

What is the tax deduction?
Your client receives an immediate, full charitable income tax deduction (up to IRS limits) for the year the contribution is made

Are there advantages to contributing securities?
Capital gains taxes on long-term appreciated securities are not applicable, up to IRS limits, so contributing these securities can be an effective tax management strategy.

How are assets invested?
Your client's contribution will be invested in up to five investment pools. These pools are professionally managed by T. Rowe Price — a firm with which you are familiar and which offers world-class investment guidance. The investment pools were established for specific risk/return objectives and are listed from lowest risk/return potential to highest risk/return potential. Because contributions are invested, they have the potential to grow and enable your clients to increase their generosity. For information on the investment pools, click here.

How can accounts be named?
Your client names the donor-advised fund account — for self, family, loved one, or special interest.

In addition, maintaining a legacy of giving is possible by naming children or advisors as successors.

How are grants made?
When your clients wish to recommend a grant, they simply complete a recommendation form and mail it to the Program or they can make a grant recommendation online. The minimum grant amount is $250.

Is there a specific timetable to make grants?
No. Your clients can recommend grants when they open their accounts or at any time they would like. Your clients lock in their charitable tax deductions now and make grant recommendations according to their personal schedule.

Are there any restrictions in making grants?
The few restrictions are simple. No tangible benefit, such as in-kind tokens of appreciation, goods, or services, can be received as a result of a Program grant by any individual or entity connected to a donor-advised fund account. Grants may not be used to fulfill a preexisting pledge, to benefit a specific individual or private foundation, or to lobby or support political activities.

What are the Program fees?
A low annual administrative and operating fee of 0.50% is assessed on all donor-advised assets. The assessment is made on a daily basis and is reflected in the net asset value of each investment pool. The administrative fee is reduced for balances over $500,000. In addition, annualized expense ratios for the pools have generally ranged between 0.35% and 0.83%.

How does a donor-advised fund differ from a private foundation?
Generally speaking, a donor-advised fund reduces the administrative time and costs related to running a foundation, making philanthropy more convenient and economical. Additional benefits include no separate tax filing, no annual excise taxes, more generous deduction limitations, and low administrative fees, among others.

How do I open an account?
It's very easy to open a Program account. To take care of the process for your client, you simply complete the applicable forms, have your clients sign the forms, and return them to The T. Rowe Price Program for Charitable Giving as indicated.