Ways to Plan a Gift - Donor Advised Fund

Definition
The St. Lawrence University Donor Advised Fund accepts gifts from individuals, businesses and other entities (such as private foundations, trusts and estates). Donors may then make recommendations to the Fund for grants to St. Lawrence and other IRS recognized charities.

Further Information

The St. Lawrence Donor Advised Fund (the Fund) is administered internally at the University. Gifts to the Fund reside in separate accounts and are commingled with the University endowment for investment. The minimuminitial gift to establish an account at the Fund is $100,000. A cash or non-cash asset may be used with approval from the Fund Committee (comprised of two trustees and two staff members). Additional gifts of at least $10,000 may be made to an account at any time.

Donors may make recommendations in writing to the Fund at any time for grants to St. Lawrence and other public charities operating and organized in the United States which are described in Sections 501(c)(3) and 509(a)(1) or (a)(2) of the IRS Code. The Fund will not make grants to individuals, political organizations, organizations not recognized by the IRS (Publication 78), organizations that will benefit a Fund donor (that provide goods, services, benefits or privileges to a fund donor) or to satisfy a verbal or written pledge by a Fund donor. Each recommended grant must be for a minimum of $1,000. Each year, at least 50% of the funds granted must go to St. Lawrence University. Grants from the Fund to charities will be made on a quarterly basis, at the end of March, June, September and December. Grants will be made first from income, then capital appreciation and corpus of an account. There is no minimum required number of grant requests each year.

Gifts to the Fund will be included in St. Lawrence fundraising totals and credited to the donor. Approved grants from the Fund payable to the St. Lawrence Annual Fund will be included in annual fund fundraising totals. Donors receive an annual financial statement outlining the performance of the Fund account and any gifts and grants made to and from the Fund account. Interim reports are available on request. If an account balance decreases below $5,000, the donor is asked to make an additional contribution within 30 days, otherwise the balance in the account is distributed to the University on an unrestricted basis.

Generally, Fund accounts are created for the lives of the donors. Distributions of any remainder in the account will be made to the University in accordance with the following based on the donor’s total contributions to the Fund:

Less than $500,000 in gifts - 100% to St. Lawrence University
$500,000 to $999,999 in gifts - minimum of 75% to St. Lawrence University
$1,000,000 and above in gifts - minimum of 50% to St. Lawrence University

If a donor to the Fund pledges to leave a remainder in the fund at his/her death as a gift to St. Lawrence, he\she may become a member of the G. Atwood Manley Society.

Donor-advised funds are often compared to private foundations.

Click here to request further information on the St. Lawrence Donor Advised Fund

Tax and Financial Implications

An individual may generally receive an income tax charitable deduction when a gift is made to a donor advised fund. A gift of cash may be eligible for a deduction up to 50% of adjusted gross income, a non-cash gift may be eligible up to 30% of AGI, depending on the donor’s individual circumstances. Grants later made from the Fund are not tax-deductible.

A Fund donor may not benefit (e.g. tickets to events, discounts, meals, memberships, etc.) from a grant made to a charity, and a grant may not satisfy a pre-existing pledge at the charity.

The University is the owner of all assets in the Fund and administers the Fund in its discretion, and has full authority with respect to the investment of the assets and properties comprising the Fund in a manner consistent with its exempt purposes. The assets of the Fund may be commingled and co-invested with the University’s other assets and properties.

The University has elected not to charge the Fund for providing administrative services. The University, may, however at any time elect to administer a fee to the Fund for providing such services. The Fund is subject to reasonable investment, custodial and related fees actually incurred by the University.

 Process to Create

While every gift situation is unique, there are several steps that may be outlined to help clarify the process. When an individual creates an account in the St. Lawrence Donor Advised Fund, he/she will most likely follow steps similar to the ones below. The process often begins with a conversation:

1. We talk. An initial conversation with the development office is advisable to help the university understand your priorities and goals. You may wish to meet with your financial and legal advisors to determine if a donor advised fund is right for you. St. Lawrence will provide a copy of our donor-advised fund agreement for your review.

2. You decide. Once all of the information is presented and reviewed, it is time to decide if the timing and circumstances are right to proceed and create your account.

3. You arrange transfer. At this point you write the check, authorize transfer of the stock, or otherwise arrange for ownership of the asset(s) to pass to the St. Lawrence Donor Advised Fund. Once ownership of the asset passes to the Fund the development office determines the gift date and the value of the gift for gift crediting purposes (it’s easy with cash, but gets more complicated with multiple transfers of stock, for example).

4. You sign. The final contract is prepared for signature, along with a gift receipt. The office will also wish to make sure the university has documented your wishes for final use of any remainder in your account.

5. You relax. You have just made a wonderful gift that will benefit St. Lawrence and maybe other charities as well, now and into the future. Enjoy the moment!

What to Expect After Your Plan is Created

The creation of your donor-advised fund account is the start of a new relationship with St. Lawrence

• You will be able to make grant recommendations from your account. You may wish to discuss your philanthropic plans with advisors at the University.
• You will receive an annual report on your account each July
• If you are a new member of the Manley Society, you will receive letters of welcome. As a Manley Society member, you will receive the society annual report each year, and an invitation to the annual meeting held during reunion each June.