{"id":4648,"date":"2022-10-26T10:31:38","date_gmt":"2022-10-26T16:31:38","guid":{"rendered":"https:\/\/crewefoundation.org\/?p=4648"},"modified":"2022-10-27T10:40:33","modified_gmt":"2022-10-27T16:40:33","slug":"can-donor-advised-funds-give-to-a-private-foundation","status":"publish","type":"post","link":"https:\/\/crewefoundation.org\/can-donor-advised-funds-give-to-a-private-foundation\/","title":{"rendered":"Can Donor Advised Funds Give to a Private Foundation?"},"content":{"rendered":"

One of the most exciting benefits of having a donor advised fund<\/a> (DAF)\u00a0 is making grants to your favorite charities.\u00a0 You can make grants from your DAF to many different charitable organizations.\u00a0 One of the questions that may come up in the process is, \u201cCan donor advised funds make grants to a private foundation?\u201d<\/span><\/p>\n

Generally speaking, donor advised funds can make grants to any active and qualified 501(c)(3) charitable organization.\u00a0 Unfortunately, the IRS does not allow DAF\u2019s to make grants to most private foundations.\u00a0 However, there are circumstances when it is allowed to make a grant from your DAF to a private foundation to a certain type of private foundation.\u00a0<\/span><\/p>\n

Types of Private Foundations<\/h2>\n

There are multiple types of private foundations as qualified by the IRS.\u00a0 The most common type of private foundation is called a private non-operating foundation.\u00a0 They are grantmaking organizations that exist primarily to make grants to other qualified charities and charitable programs.\u00a0 Gifts from DAFs to these types of private foundations are not allowed.\u00a0\u00a0<\/span><\/p>\n

There is another type of private foundation that the IRS defines as a private operating foundation that can receive grants from DAFs.\u00a0 A private operating foundation is a special type of private foundation that spends at least 85 percent of its adjusted net income or its minimum investment return, whichever is less, directly for the active conduct of its exempt activities.\u00a0\u00a0\u00a0<\/span><\/p>\n

These organizations are called private operating foundations because they are established with a closely held board of directors, such as family members, and only focus their charitable activities on their own charitable programs and activities.\u00a0 Some examples of different types of private operating foundations could include libraries, museums, research facilities, zoos or other charitable endeavors.\u00a0 Notice these are all types of organizations with a specific purpose.\u00a0 They typically use the majority of their funds to further their charitable missions.<\/span><\/p>\n

Making sure that your DAF or foundation can grant to a certain organization can be tricky.\u00a0 When you are in the process of determining if the organization qualifies for a grant from your organization, the easiest way is to ask the organization directly.\u00a0 It\u2019s always a good practice to verify.\u00a0 You can request their tax returns which should be available upon request or you can look them up on the IRS\u2019 Search for an Exempt Organization page.\u00a0 There is a section of the return that a private foundation completes to qualify as a private operating foundation.\u00a0 This will be the key to making sure your grant is sent to the right type of qualifying organization.<\/span><\/p>\n

Working with Crewe Foundation<\/h2>\n

It all sounds like a lot of work and that\u2019s why at Crewe Foundation<\/a> we handle the complete verification and grants process for you.\u00a0 When you make a grant request from your DAF with Crewe Foundation, it\u2019s really simple.\u00a0 All you have to do is login<\/a> to your account on our secure site and enter the name of the organization and we\u2019ll handle everything from there.\u00a0 If the organization is not already listed in our search you can still submit the charity for approval.\u00a0 We\u2019ll do the due diligence needed to verify the foundation is qualified to receive a donation from your DAF.<\/span><\/p>\n

Please feel free to contact us<\/a> if you have any questions.<\/p>\n","protected":false},"excerpt":{"rendered":"

One of the most exciting benefits of having a donor advised fund (DAF)\u00a0 is making grants to your favorite charities.\u00a0 You can make grants from your DAF to many different charitable organizations.\u00a0 One of the questions that may come up in the process is, \u201cCan donor advised funds make grants to a private foundation?\u201d Generally […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[134],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/posts\/4648"}],"collection":[{"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/comments?post=4648"}],"version-history":[{"count":1,"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/posts\/4648\/revisions"}],"predecessor-version":[{"id":4651,"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/posts\/4648\/revisions\/4651"}],"wp:attachment":[{"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/media?parent=4648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/categories?post=4648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crewefoundation.org\/wp-json\/wp\/v2\/tags?post=4648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}