How do I recommend a grant from my fund?
The easiest and most convenient way for you to recommend a grant is through our online platform. To log in, please click Log In at the top right of this page. For assistance with the online platform, please contact firstname.lastname@example.org or 502.585.4649.
Who can make grants from a Donor Advised Fund?
Throughout your lifetime, or until you resign from the Advisory Committee, you may recommend grants from your fund. You may also designate your spouse or partner, your child, or another member of your family or a friend to the Advisory Committee. You can name your children and grandchildren as successors to the Advisory Committee. At the end of the Advisory period for your fund (after your death or resignation or your successors) the Foundation’s Board of Directors will make grants from your fund in accordance with your wishes.
Charitable Checking Funds do not allow for successor advisors, but remaining funds at the time of death can be designated to charities of your choice.
Are my grants tax deductible?
Grant distributions from your Community Foundation fund are not tax deductible. You receive your charitable tax deduction when you make a gift to the Community Foundation. Even if a nonprofit sends you a receipt for your grant distribution from your fund, you may only claim a charitable tax deduction for your original gift to the Community Foundation.
To whom may I recommend a grant?
You may recommend grants to qualified nonprofits and government entities. To comply with applicable IRS regulations however, the Community Foundation’s Board of Directors retains the final responsibility for approving distributions from funds. Grants are generally made to organizations recognized under Section 501(c)(3) of the Internal Revenue Code.
What is the minimum I can grant?
The minimum grant amount is $100.
What if I need assistance with my grantmaking?
We have professional staff members who are available to help you make effective and meaningful grants. We can help you learn about nonprofits who work in your areas of interest or conduct research on causes that matter most to you. Contact Michael Pfaff, Senior Manager, Grants Administration at 502.855.6959 to discuss your charitable interests and goals.
May I recommend a grant through my fund to buy a ticket to an event?
According to IRS regulations, the cost of a ticket to such an event cannot be paid from your fund, even when only a portion of the ticket price is identified as tax-deductible and another portion as non-tax-deductible. Two examples illustrate this point:
- If a nonprofit’s fundraising event is $250 per person, and the nonprofit states that $100 are tax-deductible and $150 is non-tax-deductible, you may not divide the event support between a Donor Advised Fund and your personal check. You must pay the full $250 personally.
- If you wish to sponsor a nonprofit’s event (at which individual tickets cost $200 per person) at a $5,000 level, you may recommend a grant of $5,000 from your Donor Advised Fund to support the nonprofit and personally pay $200 per ticket to attend.
You may support the event by recommending a general operating grant so long as you do not attend the event.
May I recommend a grant for membership dues?
In some cases, membership dues can be paid from a fund, as long as any benefits or privileges received are considered “incidental benefits” that would not reduce the value of a charitable deduction in return for an annual contribution. If you refuse a membership benefit you can a recommend a grant for membership through your fund, but only if you explicitly reject the benefit at the time the gift is made. You cannot choose to refuse the benefit after you already received it. In a case like this, we suggest that you recommend the grant for general operating support in order to avoid the appearance of conflict. General operating grants to a nonprofit are always allowed.
Please contact the Community Foundation at 502.585.4649 if you have any questions regarding grants that may include membership benefits.
How long does it take to process a grant recommendation?
Grant recommendations will generally be processed within five business days. Grants to nonprofits that require additional time for verification may take longer to process. Grant recommendations over $250,000 require additional review and may be delayed.
Can a grant from my fund fulfill an irrevocable pledge to a nonprofit?
Although you may not fulfill an irrevocable personal pledge through your fund, you may recommend that the Foundation make a multi-year grant from your fund to a nonprofit.
May I recommend an anonymous grant?
Yes, you can recommend a grant anonymously at any time. You may request all grants to be made from your fund anonymously, or you can do so on a grant-by-grant basis. Both the name of your fund and your own name can remain anonymous to grant recipients.
May I recommend grants outside of Louisville?
Yes, you may recommend grants anywhere in the U.S., as long as they are made to IRS-approved, 501c(3) nonprofits, schools, or churches.
Can you send me the grant check so I can deliver it to the nonprofit?
The Foundation sends checks directly to nonprofits. You can, however, present a Grant Certificate to inform the nonprofit of your pending grant.