Donor-Advised Funds
Tax efficient. Simple. Flexible. DAF’s are the ideal vehicle for modern philanthropy.
There’s a reason that donor-advised funds are the most popular way to give in the U.S. It’s because they were created with the donor in mind.
TODAY’S MOST UNTAXING WAY TO GIVE
When you’re ready to start giving, MCF is ready to make it easy. Open a donor-advised fund in just one day with virtually any asset that you’d like to use — from simple to highly complex.
When you do so, you’ll receive an immediate tax deduction for the full fair market value of the assets donated, and then every time you contribute to the DAF. The funds can be distributed to nonprofits immediately or at a later date. This allows you to maximize your charitable deductions in high income years and manage your giving according to your financial situation and charitable priorities.
Once contributed, MCF invests and manages the assets so they can grow tax-free. You can choose from a range of investment options, depending on your risk appetite.
Recommend grants to qualified nonprofits at any time via MCF’s proprietary online Giving Center.The streamlined process makes granting simple. And if privacy is important, you can choose to remain anonymous in your giving.
MCF handles all the administration and IRS compliance. With four decades of grantmaking experience, we have a team and a process that’s absolutely seamless.
Most importantly, once the fund is open, you’ll experience the true value of MCF: our people.
Opening a DAF at MCF offers tax benefits, streamlines your charitable giving, provides flexibility and investment opportunities, and supports strategic philanthropy—all while leaving a lasting impact on causes and organizations you care about.
FAQs
How much does it cost to open a donor-advised fund at MCF?
There are no start-up costs associated with opening a fund at MCF
Is there a minimum contribution size?
There is no minimum contribution to open a fund. However, to ensure you feel as though you’re getting value from your annual fee, we recommend you establish a fund of at least $50,000
How much do I legally need to distribute from my fund every year?
Unlike private foundations, that legally have to distribute a minimum of 5% of their fund’s balance annually, there is no distribution requirement for a donor-advised fund. However, we strongly encourage our donors to distribute at least 20% every year.
Can I make grants internationally?
Yes! Unlike DAFs at commercial companies, like Schwab and Fidelity, MCF donors can recommend grants to nongovernmental organizations outside of the U.S. that have a verifiable charitable purpose. All grants directed outside of the U.S. must comply with federal government regulations, and the prospective grantee must be verified as the equivalent of a public benefit organization within the U.S., not appear on any government lists of suspected terror organizations, and otherwise conform to all relevant U.S. federal and state laws. MCF simply passes on the fees associated with any third-party due diligence.
Is there a minimum grant amount required?
Grants given to all 501(c)(3) public charities within the U.S. must be for a minimum of $500. Grants given outside the U.S. must be for a minimum of $2,500. U.S. grants can typically be made in a week.
