Harness the Giving Power of a Private Foundation
A donor advised fund, which is like a charitable savings account, gives you the flexibility to recommend how much and how often money is granted to Hood College and other charities.
You transfer cash or other assets to a tax-exempt sponsoring organization such as a public foundation. You can then recommend—but not direct—how much and how often money is granted. In addition, you avoid the cost and complexities of managing a private foundation.
In return, you qualify for a federal income tax charitable deduction at the time you contribute to the account. This also allows for a centralized giving and record-keeping system in one location.
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An Example of How It Works
Joe and Laura want to give back to their hometown by putting their money where it will do the most good. They establish a $25,000 donor advised fund with a community foundation.
The couple receives a federal income tax charitable deduction for the amount of the gift. They also get all the time they need to decide which charities to support.
After researching community needs with the foundation’s staff, Joe and Laura recommend grants for Hood College (which they’ve supported for years) and the Animal Rescue League. The foundation presents the charities with checks from the Megan Fund, which Joe and Laura named in honor of their daughter. Joe and Laura are delighted to start this personal legacy of giving.Watch this video to learn more
Your Next Steps:
- Get to know the organization's policies and procedures—from minimum contributions to administrative fees. Each organization handles these details differently.
- Seek the advice of your financial or legal advisor. Contact Teresa May, Ph.D. at 301-696-3513 or firstname.lastname@example.org to discuss using donor advised funds to support Hood College and our mission.
- Evaluate a sponsoring organization to make sure it supports your interests, values and the type of asset you are considering as a funding source. If you include Hood College in your plans, please use our legal name and federal tax ID.
Legal Name: Hood College of Frederick MD
Address: Frederick, MD
Federal Tax ID Number: 52-0591608