Why does MRG manage donor advised funds?
MRG is committed to expanding giving in the community; especially giving that supports social justice. In addition, donor advised funds are a way MRG can support our donors as you seek to create a better world through your gifts.
Is my gift to set up a donor advised fund tax deductible?
Yes! You receive a tax benefit in the year in which you made your gift.
How much do I need to give to set up a donor advised fund at MRG?
Donor advised funds can be either short-term or long-term. For short-term donor advised funds, a donor must make a gift and then recommendation of at least $500 for in state grants and $1,000 for out of state grants. Donors have 30 days to make grant recommendations.
Long-term donor advised funds start with a minimum gift of $10,000 to set up the fund.
How long do I have before making grant recommendations for my donor advised fund?
The time you have to make grant recommendations depends on the size of your donor advised fund. We have four levels of donor advised funds:
- Level I: $10,000 and $49,999. Two years to distribute funds.
- Level II: $50,000 and $149,999. Four years to distribute funds.
- Level III: $150,000 to $249,999. Six years to distribute funds.
- Level IV: For funds greater than $250,000, specifics of the fund will be determined.
Does MRG charge fees to manage donor advised funds?
Yes. MRG either charges a per grant fee or will waive fees for those who make direct gifts to MRG. The amount of the donation required to waive the fee depends on the size of the donor advised fund.
Can I recommend a grant to an individual?
No. Donor advised grants may not include any transfer to an individual or a transfer for any purpose other than a charitable purpose. Thus, donor advised funds cannot support scholarship programs or make grants to 501(c)(4) organizations.
Can I make a grant to my child’s school or the non profit I work for?
No. According to IRS regulations, grants cannot be made that result in more than incidental benefit for the donor, fund advisor, or person related to the donor or fund advisor (directly or indirectly).
Can a donor advised fund be used to fulfill a pledge?
No, Donor advised grants may not be used to fulfill pledges made by the donor to the grantee(s).
Can I make a grant recommendation to any group I want?
Yes. However, MRG’s Board of Directors is responsible for final approval of all grant recommendations. MRG will not fund a group that is contrary to our vision for justice, such as a group that opposes marriage equality, is anti-choice or works to erode environmental protections.
May I recommend a grant to a group outside of the United States?
Yes. Grants to groups working internationally are okay if the recommended group is based in the United States with a 501(c)(3) tax-exempt status.
Can I make a grant recommendation to an individual?
No. Donor advised grants cannot be given to individual.
Can my donor advised grants be anonymous?
Yes. If you want to be anonymous, MRG will not share your information with the groups you recommend for funding.
Think that a donor advised fund may make sense for you?
Contact Sheryl Sackman or call 503-289-1517. It is our goal to serve donors’ philanthropic visions for a better world.