Opening a Great Commission Donor Advised Fund
- Who can open a Great Commission Donor Advised Fund (GCDAF) account?
- Other entities
- How much do I need to apply for a Great Commission Donor Advised Fund account?
- You can fund a GCDAF account with as little as $5,000 cash, stock or other appreciated assets.
- Can a Great Commission Donor Advised Fund account be named after someone other than me?
- Yes. You can name the GCDAF account to best suit the legacy you are establishing.
- How quickly can a Great Commission Donor Advised Fund account be established?
- At Cru Foundation, we can establish the GCDAF account as soon as the application is received, typically within one business day. We will then give you online access to the GCDAF account to allow you to contribute to the Fund and manage grants advised from the Fund.
- If I establish a Great Commission Donor Advised Fund account, does that mean all the grants made from it have to be to Cru?
- No, as long as the requested grant does not violate our statement of faith and fits within the guidelines as detailed in our publication “The Great Commission Donor Advised Fund Program Guidelines.”
Managing a Great Commission Donor Advised Fund
- Can my children be involved with the Great Commission Donor Advised Fund account?
- Yes. You can name them as co-advisors or successor advisors to the GCDAF account. They can assume these roles at 18 years old.
- Can a Great Commission Donor Advised Fund account have multiple successors?
- Yes. The GCDAF account can have multiple successors that share responsibilities.
- How are the assets in a Great Commission Donor Advised Fund invested?
- Account holders can advise on the selection of one of 6 investment profiles.
- What types of fees are charged to a Great Commission Donor Advised Fund?
- Cru Foundation now charges no administrative fee.
- The current “all-in” investment fees are 0.58% or less, depending on the investment profile chosen, as of 4th quarter 2022. You can view a full chart of DAF Investment Fees here.
- What happens to a Great Commission Donor Advised Fund account if there are no successors?
- The funds will be distributed to Cru and the GCDAF account closed.
- How are the funds managed?
- The funds are managed by a firm of experienced professionals who share our Christian values. They oversee all aspects of portfolio design including asset allocation, investment vehicles, manager analysis, and liability management and are accountable to the Cru Foundation Board of Directors.
- What investment vehicles does Cru Foundation use?
- Cru Foundation typically uses cash, money market mutual funds, and exchange-traded funds. The investment manager may use other investment vehicles in order to achieve the goals and comply with the investment policies as set by the Cru Foundation Board of Directors. Please see our detailed Program Guidelines or contact us to inquire about further information.
Assets and Definitions
- What types of assets can I contribute to a Great Commission Donor Advised Fund account?
- Cash, stock, bonds, real estate, cryptocurrency, business interests, precious metals, and other assets.
- At what point is a contribution considered a charitable donation?
- A contribution generally becomes a donation when the asset is out of the donor’s control. This is determined by the type of asset you contribute, as well as when and how it is transferred to the GCDAF.
- Can I contribute assets from my IRA to a Great Commission Donor Advised Fund account?
- While the IRS doesn’t allow Qualified Charitable Distributions from an IRA to any donor-advised fund, after-tax IRA funds may be used to establish the GCDAF. Normal IRA distributions can be taken and then contributed to the GCDAF. The contribution to the GCDAF is tax-deductible and may offset income tax incurred by the IRA distribution. Please consult your tax professional to make sure your individual situation applies.
- What is the best type of asset I can contribute to a Great Commission Donor Advised Fund?
- While this varies by person, the most common contributions of assets are appreciated securities that you have owned for more than one year. For many people, this allows them to avoid triggering the capital gains tax that would have been due at a sale. In addition, it allows for a substantial tax deduction which can offset income taxes. Please speak with your tax professional.
- Can friends and family contribute to a GCDAF?
- Yes. Anyone can contribute to the fund account and receive a tax-deductible receipt for the donation.
Contribution Amounts and Frequency
- How much do I need to open a Great Commission Donor Advised Fund account?
- You can establish a GCDAF account with as little as $5,000. Once the GCDAF is established, you can make subsequent contributions.
- Are additional contributions to a Great Commission Donor Advised Fund tax-deductible?
- Yes. All contributions to the GCDAF are considered tax-deductible, subject to your personal situation.
- How often can I make contributions to a Great Commission Donor Advised Fund?
- You may contribute to the GCDAF as often as you like. Many donors prefer to maintain the balance and will replenish soon after they recommend grants. Others prefer to build the account by making regular contributions to allow for larger-scale future grants.
Contribution Management and Reporting
- Will I get a receipt for my contributions to a Great Commission Donor Advised Fund?
- Yes. Cru Foundation will issue a written confirmation of your contributions into the GCDAF. This confirmation will serve as a receipt for your taxes. With a GCDAF, you can deduct the full amount of your contribution, subject to your personal tax situation. Because you take a tax deduction for the initial contribution, grants you recommend from the GCDAF do not qualify for a tax deduction.
- Will I be able to access my statements online?
- Yes. Your statement with all transactions will be available through online access.
- How do I make cash contributions?
- Many ways! You can mail a check, send a check from your bank’s recurring bill payment program, use ACH, or wire money. You can contribute via credit card or e-check through your online account. Any associated transaction fees charged by third parties will come out of the balance of the GCDAF; however, your tax-deductible receipt will be for the full amount of the contribution.
- Can I move a donor-advised fund held at another institution to a Cru Foundation GCDAF?
- Yes. Usually this involves issuing a grant from the existing donor-advised fund account to a new account at Cru Foundation. Please contact us today for assistance.
TAX INFORMATION**Please consult with your professional tax advisors on all matters related to your gifts. Cru Foundation does not provide tax, legal, or other professional advice.
- Can the income accrued in a Great Commission Donor Advised Fund be deducted as an additional charitable donation?
- No. Only contributions to Cru Foundation are tax-deductible. Growth inside the GCDAF is not eligible for an additional deduction.
- Does my tax deduction depend on the type of asset I contribute?
- Yes. The deductible amount depends on the type of asset contributed, which can affect how the value is calculated and what ceilings there might be on how much of it you may deduct. Cru Foundation can assist your tax professional in determining the deductible amount.
Tax Liability and Filing
- Why is the net amount in a Great Commission Donor Advised Fund different from the amount of my charitable deduction?
- If you funded the GCDAF with a credit card, e-check or similar, the merchant services company charges Cru Foundation a fee which will reduce the net amount in the GCDAF. However, your charitable deduction will be for the full amount prior to the amount taken out by third parties.
- If you funded the GCDAF with stock or other appreciated assets, you receive your charitable deduction based on the average of the high and low on the date you contribute them. It is our policy to seek to sell any securities within three business days of receiving them. From the time you contribute to the time we liquidate, market prices can fluctuate, causing a higher or lower amount to be in the GCDAF.
- While money in a GCDAF is generally invested conservatively and managed with prudence according to industry standards, the value of a Fund account can go down due to market fluctuations. While risk can be managed, there is no way to eliminate the risk of investment loss.
- Do I file a contribution receipt with my taxes at the end of the year?
- For non-cash gifts over $500 and that are not publicly traded securities, you may need to complete and file IRS Form 8283 with your tax statement at the end of the year. You may also need to file a copy of a qualified appraisal as described on IRS Form 8283. It is extremely important to review the information on this form with a competent tax professional since it is your responsibility to submit correct information to the IRS.
- How are capital gains treated for gifts of appreciated securities?
- Since Cru Foundation is a 501(c)(3) non-profit, we do not pay capital gains tax when we sell gifted securities. Therefore, you owe no capital gains tax on securities you contribute to the Great Commission Fund.
Grantmaking Guidelines and Definitions
- Are there any types of grants that Cru Foundation cannot make?
- Yes. We cannot make grants to organizations whose beliefs or activities conflict with the goals, objectives, statement of faith, or religious mission of Cru. We cannot make grants to private foundations or to individuals. Grants cannot be made to political candidates or parties. They cannot be used for any personal benefit such as tuition, dues, membership fees or for any goods/services purchased at a charitable auction. Please refer to the GCDAF Program Guidelines or inquire with our team if you’re unsure about a grant that you might recommend.
- How do I recommend a grant?
- Grants can be recommended through your online account 24/7.
- Can I recommend a grant from a Great Commission Donor Advised Fund to attend a charity event?
- No. Funds cannot be granted to sponsor a table or for event tickets. When you make your initial contribution to the GCDAF, the contribution is 100% tax-deductible. That is because you do not receive any goods/services in exchange for that contribution. Charitable events and galas provide attendees with benefits that aren’t tax-deductible, such as food, drinks and door prizes.
- Can I recommend a grant from a Great Commission Donor Advised Fund account to any charity or non-profit organization?
- Yes, nearly any, subject to our Program Guidelines. Cru Foundation can make grants to charitable organizations that are tax-exempt under Internal Revenue Code Section 501(c)(3) and public charities under IRS Section 509(a) if they are not in contradiction with the goals, objectives and religious mission of Cru.
- Can I recommend an anonymous grant from a Great Commission Donor Advised Fund account?
- Yes. Any individual grant can be issued anonymously, credited to the GCDAF itself or credited to you as the donor. You may also recommend a grant in someone’s honor or memory.
Grant Amounts, Fees and Frequency
- How many grants can I recommend each year?
- There is no limit to the number of grants you can recommend each year.
- What is the minimum amount for a grant?
- The minimum distribution is $50 to organizations outside of Cru. If the distribution is made to a Cru ministry or a Cru staff’s ministry or project, the $50 minimum grant applies, but it can be split across multiple ministries with no minimum on those requests.
- Is a fee charged for each grant I recommend?
- How quickly are grants processed?
- Approved distributions will generally be sent out to the organization within 6 business days of receipt of the distribution request, often sooner.
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