The Tidewater Jewish Foundation’s (TJF) Procedures for Operation of Philanthropic Funds provides comprehensive guidelines for its Affiliates, Donors and Staff regarding all aspects of funds held with TJF. It applies to all types of funds held (donor-advised, restricted, unrestricted) and formalizes TJF’s current practices and procedures.
View the entire document HERE.
Highlights of / Additions to the document include the following:
- Incorporates tax law changes under the Pension Protection Act of 2006 (PPA).
- Life cycles of funds: establishing funds, contributions and gift/acceptance processes, investment considerations, annual spending policy and “sweeps”, grants and distributions, and on-going fund administration
- Reinforces that distributions from funds must be for grants to 501(c)(3)public charities (not private foundations) and to governmental units such as state colleges and universities (special rules apply to restricted funds that may provide grants to support individuals, e.g. scholarships)
- Confirms current practices under “Fund Administration” section related to quarterly reporting to donors and other fund representatives and the administrative fees charged to funds
- Confirms current procedures related to donor recognition in annual reports and for acknowledgement in grant distributions unless donor requests anonymity
- And, as applicable to TJF and the UJCVP Endowment as sponsoring organizations of Donor-Advised Funds (DAFs) to conform with PPA:
- Compliant with tax law, donors/advisors retain a privilege of advising on DAF grants, the ownership of the funds and final grant determination is with TJF/UJCVP (formalizes current practices of ensuring grants must not be incompatible with TJF’s mission and grants over $50,000 receive prior Board approval; UJCVP must receive prior Board approval over $10,000
- Special rules may apply where DAF contributions include interests of more than 20% in a business enterprise “excess business holdings” – monitored at gift acceptance (results from PPA)
- Donors cannot receive more than an incidental benefit from any grant and grants cannot be used to pay a legally-binding obligation, pledge or debt of donors
- DAF grants to certain organizations (essentially ones where a donor may have control) requiring “expenditure responsibility” generally will not be approved (results from PPA)
- To comply with Congressional intent that charitable contributions represent a “completed gift” with regard to DAFs and the timing between contributions and ultimate grants to charities:
- Indicates DAFs should remain active with additional gifts and recurring annual grants
- DAFs deemed inactive after 24 months – staff follow-up moving to Board termination
- Other DAF life-cycle considerations:
- Successor advisors must be named during donors’ lifetimes and DAFs must have $25,000 balance at point of succession
- Funds terminated for inactivity or at end of advisors’ lives to transfer to unrestricted funds (balances over $5,000 become named funds)
If you would like a printed version of the full document sent to you, please contact Shelby Tudor, Donor Services Manager, at (757) 965-6105, firstname.lastname@example.org, or Stephanie Grooms, Donor Relations Coordinator, at (757) 965-6106, email@example.com.