the “other” grantmakers...2017/04/28 · the “other” grantmakers donor advised funds and...
TRANSCRIPT
The “Other” GrantmakersDonor Advised Funds
and
Supporting Organizations
Planned Giving Group of New EnglandApril 28, 2017
Wendy Chou
The Oregon Community Foundation
www.oregoncf.org
Outline
• Why gift planners should care about DAFs and SOs
• Legal definitions and vocabulary
• Case studies
• Questions
www.oregoncf.org
Grants from DAFs to Nonprofits*
Total Charitable Funds Raised from Individuals in 2015:
$265 billion
$22.26 billion contributed
to DAFs
$14.52 billion in grants to Nonprofits
* Data from National Philanthropic Trust’s 2016 Donor-Advised Fund Report.
Total Assets Held in DAFs in 2015: $78.6 billion
www.oregoncf.org
Grantmaking From DAFs*
8.148.55
9.91
12.42
14.52
0
2
4
6
8
10
12
14
16
2011 2012 2013 2014 2015
Grant Dollars to Nonprofits 2011-2015Billions
* Data from National Philanthropic Trust’s 2016 Donor-Advised Fund Report
www.oregoncf.org
Grants from
Supporting Organizations
57,000Supporting Organizations
in the U.S.
$76BILLION
IN TOTAL ASSETS
=
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Our Donors
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Donor Advised Fund:
A Relationship
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• I advise a grant to the Dallas Hospital
• Fund Sponsor approves or not
• Fund Sponsor makes a grant to Dallas Hospital
The Ewing Donor Advised Fund of The Dallas Community Foundation
www.oregoncf.org
Why do donors give to DAFs?
It is......
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DAFs and Supporting Organizations are
vampires of the charitable world and suck
away money that would otherwise be going
to operating charities.
Rumor
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Scenario #1
Ewing Oil Had a
High Income Year
Ewing DAF at
The Dallas
Community
Foundation
Corporate
Stock
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a. Swear profusely and spit in the eye
of Dallas Community Foundation.
b. Continue cultivating the Ewings.
c. All of the above.
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Scenario #2
JR will require DCF to make a
grant to Dallas Hospital.
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Donor Control
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AND
Pledges
Scenario #3
What Not to Do With DAFs
www.oregoncf.org
www.oregoncf.org
www.oregoncf.org
Scenario #4
Football Fever
• Bobby recommends large grants from his
DAF to the football program at Texas A&M.
• Texas A&M wants to give Bobby
“preference points.”
• Permissible?
www.oregoncf.org
Supporting Organization
www.oregoncf.org
Supporting Organizations
Supporting Organization Board
Funds
Services
Infrastructure
Mission
Supported Organization Board
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Spectrum of Control
Least Most
Donor Advised
Funds
Private Foundations
Supporting Organizations
www.oregoncf.org
Why do donors form SOs?
www.oregoncf.org
Gift of Complex Asset
Closely held stock in
biotech synthetic oil
company??!
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Supporting Organization
Technical Points
Can I control the board of my supporting organization?
Can the supporting organization pay my wife a
salary?
It’s not like I have to attend board meetings, right?
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Scenario #5
James Beaumont, J.R.’s son, who
was born out of wedlock, applies to
work for the Southfork SO as a
program officer.
www.oregoncf.org
www.oregoncf.org
www.oregoncf.org
Scenario #6
We’re Following the Rules, But…
• JR and Bobby are on the board of the SO
• DCF names three directors:
– CFO
– VP of Gift Planning
– Employee of Ewing Oil
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Questions?
