Donor Advised Funds in Houston.

A donor advised fund is a personal giving account that allows you to make tax-deductible charitable contributions to your own investment fund. These investments can then be used to recommend grants to nonprofit organizations. In other words, you can support all the causes you care about with one, easy-to-use, tax-advantaged fund.

Think of your donor advised fund as a charitable investment account. Once you open your fund, you are able to make charitable contributions as frequently as you like and recommend grants to your favorite charities when it feels right for you. The assets in your donor advised fund will be invested at your discretion, and any growth will be tax-free — allowing you the ability to increase your philanthropic impact, helping more of those in need around the Greater Houston area.

In addition to helping you give back to the causes that matter to you, donor advised fund benefits also include maximizing your tax benefits and supporting your legacy plan.

The benefits of a donor-advised fund include:

• Easy to establish and manage
• Gifts are tax-deductible and earnings are tax-exempt
• More confidential than a private foundation; assets and donations are not public
• You are able to work with your own investment manager for funds over $500,000
• You can donate complex assets such as real estate, royalty interests, and closely held stock
• Can be endowed to support giving beyond your lifetime and create a lasting charitable legacy
• Opportunity to engage children and future generations in your charitable giving
• Use as a channel for gifts from your estate after your lifetime
• Access streamlined gift tax receipt management online through our donor portal

The tax advantages of a donor advised fund include:

• Full tax deductibility in the year the contribution is made to your fund, but distribute grants when you’re inspired to give (no annual giving requirement)
• Higher deductibility than private foundations: 60% AGI limit on cash, 30% on appreciated assets
• Five-year carry-forward for unused deductions
• Earnings grow tax-free; no excise tax on net investment income
• No capital gains tax on gifts of appreciated assets including securities, real estate, and complex assets
• Reduce estate taxes by including giving through a donor advised fund in your estate plan

An annual advisory fee is charged based on the level of assets in your account. Fees are deducted from your account on a monthly basis. Your fee supports the costs associated with administering your donor advised fund, including online account management, gift and grant processing, philanthropic advising, and educational opportunities. Your fees at Greater Houston Community Foundation are also an investment in Houston. As the primary steward of philanthropy in Houston, we are a 501(c)3 nonprofit organization that works to inspire meaningful and positive change with our donors and for our community and delivers impact through programs like disaster relief and Understanding Houston.

View Advisory Fee Schedule

Starting a donor advised fund at Greater Houston Community Foundation is easy. Contact Andrea Mayes, Senior Director of Charitable Solutions, at 713.333.2203 or amayes@ghcf.org, to open a fund today. All you need is your personal information (name, address, and date of birth) to get started. We encourage you to also elect a successor advisor to direct your fund after your lifetime. For donors who wish to invest at least $500,00, you can retain third-party investment management and name your professional advisor if you would like for them to have access to your account.

The link to your new donor advised fund will be emailed to you within 3-5 days. Once you have that link, you will be granted online access to your personal account where you can add funds — including complex assets — watch your investments grow, and make grant recommendations.

You may elect to have your fund assets invested in one of four investment pools: Growth, Growth and Income, Income or Money Market. These investments pools are overseen by the Investment Committee and professionally managed by Angeles Investments. You get to leverage the cumulative assets of the Foundation to provide competitive returns at cost-effective rates. Additionally, for funds with assets over $500,000, you may work with your independent investment advisor through the Foundation’s third-party management program.

Learn more about the investment performance returns associated with your donor advised fund.

To ensure compliance with IRS regulations and to prevent potential penalties for Donors/Advisors and interested parties, Greater Houston Community Foundation will not approve grants that aim to cover any portion of a gift resulting in more than an incidental benefit for an individual. This includes benefits related to fundraising events, like gala table sponsorships, event tickets, 5K race registrations, items at a charitable auction, museum memberships, and the like. In simpler terms, grants cannot be used to pay for parts of a gift that provide the donor or advisor with benefits they wouldn’t have received otherwise. If attendance at an event or any other benefit is dependent on a grant from a donor-advised fund account, we cannot approve the grant recommendation. If a Donor/Advisor wants to receive goods or services (like event tickets) from a charity in exchange for a specific contribution, they should make the contribution directly, without involving their donor advised fund.