This section provides resources donors may need for their account.
OPEN AN ACCOUNT
COST
INVESTMENT OPTIONS
CONTRIBUTE TO YOUR ACCOUNT
MAKE A GRANT
COMMON QUESTIONS
FORMS
DISCLAIMER
Creating a donor advised fund with Local Philanthropic is easy, just complete the new fund application and select your funding method. The account application form can be found HERE and also in our “Forms” section.
You will be able to create your own fund name, which can be as simple as your family name (The Smith Family Foundation) or as a reflection of the nature of your charitable mission (The Smith Fund for Education). With each grant recommendation, you may elect to be acknowledged by the account name or preserve your privacy and select anonymity.
The new account is typically funded either by cash or often with donated securities, like stocks or bonds. The minimum account size is $5,000.
We must also establish an investment strategy for your donated funds. Local Philanthropic offers five main investment styles, ranging from less- to more-risky strategies, or you can recommend a custom investment allocation. More information on investment strategies can be found HERE.
Once the fund is created, you will be issued login credentials which will allow you to view account information at any time. It also contains comprehensive charity reviews and a way to make grant recommendations online.
An account with Local Philanthropic costs nothing to establish and there are no additional out-of-pocket expenses. Only a monthly fee is charged based on the size of your account. Local Philanthropic is unique in that it charges a smaller fee for months when the account is lower, which is a way to make your fee fairer.
Negative month: 0.04% charge
For example, an account of $100,000 would have a fee of $80 if the account value is higher on the month and $40 if it is lower.
There is a minimum monthly fee of $20 to cover our custodian, research, marketing, legal, accounting, administrative, and processing costs, as well as general overhead.
Account Custodian services are provided by Interactive Brokers and trading costs must be paid to the custodian. Most trades cost $1 and Interactive Brokers includes $10 worth of free trades every month. Trades exceeding 200 shares can cost more than $1. Details can be found HERE. Local receives no compensation or kickbacks from the custodian, eliminating potential conflicts of interest.
Local Philanthropic offers five main investment styles to accommodate donors who may be looking to give soon, or well into the future.
A Local Philanthropic fund is unique in that it can invest in investment products like ETF’s and mutual funds from any investment company. Many donor-advised funds are sponsored by investment companies that only offer investments only from their company.
With Local Philanthropic, donors are able to customize their own investment style, but we recommend the following allocations (Click description for more information):
The Growth theme carries the most risk, but has the highest potential for growth and has the longest term horizon. It invests primarily in stocks, both domestic and foreign, and has a smaller percentage of safer investments, like bonds.
Target allocation:
70-80% Equity
10-30% Fixed Income
0-10% Cash
The Moderate Growth style carries some risk and has growth potential, but not as much as the Growth style. A slight majority of the portfolio is invested in riskier assets like stocks.
Target allocation:
60-75% Equity
15-35% Fixed Income
5-10% Cash
The Balanced style gets its name because it is a split between riskier and safer investments. It is less aggressive, but still has the potential for growth.
Target allocation:
45-55% Equity
45-55% Fixed Income
5-10% Cash
The Moderate Conservative style leans towards safer investments, but has a slight allocation to riskier assets with the potential for growth. A majority of the portfolio is in safer investments like bonds, while the riskier investments like stocks are invested in less-risky large cap and dividend paying stocks.
Target allocation:
15-35% Equity
60-75% Fixed Income
5-15% Cash
The Conservative theme carries the least risk with the least potential for growth and has the shortest-term horizon before gifting to charity. It invests primarily in safer investments like bonds. It maintains a slight exposure to stocks, though invests in “safer” stocks like large caps and dividend paying companies.
Target allocation:
5-15% Equity
65-85% Fixed Income
10-20% Cash
A minimum initial contribution of $5,000 is required to open a donor-advised fund with Local Philanthropic. Subsequent contributions can be made in any size.
Donations can be made with cash and publicly-traded securities like stocks, bonds, mutual funds, and ETF’s.
Contributions to Local Philanthropic will be followed with a written acknowledgement sent by mail. This acknowledgement serves as your receipt for tax purposes.
Donors should consult with their legal and tax advisors prior to making a gift.
Donors may recommend grants at any time to qualified U.S. charities. Recipient nonprofits must be exempt under Section 501(c)(3) and classified as public charities under Sections 509(a)(l), (2) or (3), or are treated as the equivalents of public charities for federal tax purposes, like universities.
Grants may be made in any amount, however, grants under $250 will be charged $10 fee to in order to curb small donations. There are no restrictions on a maximum or minimum number of grants that can be recommended in any given time period and no minimum balance is required to maintain a DAF account.
Grants can be made either online or by completing the grant form found in the forms section.
Payment to the recipient nonprofit will be sent with an accompanying note, personalized to the donor’s instructions.
Full Disclosure – Will provide the name of the individual(s) named on the account and their mailing address, as well as any special purposes, like “Donation made in honor of or in memory of …”
Partial Disclosure – Will provide only the account name of the Donor Advised Fund (“The Smith Family Charitable Fund”)
Anonymous – Will not disclose any donor information with the grant, only providing information that the gift came from The Local Philanthropic Fund, Inc.
Nonprofits that receive your donation will not issue a tax receipt, but may send a note of thanks if you choose to provide contact information.
Anyone can open a donor advised fund, including individuals, families, and companies.
Establishing a donor advised fund with Local Philanthropic is easy.
Just start by completing the donor advised fund application.
Then transfer assets to the newly opened account.
Login credentials will be issued upon completion of the new account process. The client website contains comprehensive charity reviews and financial account information, as well as allow grant recommendations.
A donor advised fund can be created for as little as $5,000. Subsequent donations can be made in any amount.
Local Philanthropic will accept cash and publicly-traded securities.
You may choose any name for your donor advised fund. If a name is not chosen, the default title will be “The (Name) Charitable Fund.”
Donors may recommend grants to charities of their choice from their Local Philanthropic account. Grant recommendations are largely approved as long as the organization is an IRS-approved 501(c)(3) public charity and the grants comply with guidelines and restrictions specified in the Program Policies.
There is no minimum grant size. However, sending the grant is a labor-intensive process so grants under $250 are charged a $10 fee.
Yes. You may request that the account name and/or donor's information not be provided to the grant recipient.
Yes. Contributions to your donor-advised fund are eligible for immediate tax deduction. Local Philanthropic will provide written confirmation of your contribution, which serves as a receipt for tax purposes.
However, grants made to charities from the donor advised fund are not eligible for a tax donation.
Yes, but only IRS-approved, 501(c)(3) charities that are based in the United States are eligible for grants.
No. Internal Revenue Service rules specifically forbid such grants.
Of course. Donors may make changes to their investment style at any time.
No. All gifts are irrevocable.
The size of the deduction depends on the type of contribution made.
Cash donation – When donating cash (by check or transfer),
donors are eligible for an income tax deduction of up to 50% of adjusted gross
income.
Appreciated investments – Contributions of appreciated
publicly-traded securities are a popular donor method because it eliminates
the capital gains taxes that come from selling investments.
Please contact your tax advisor to evaluate your tax deductibility limits.
You will receive IRS Form 8283 to file with your tax statement at the end of the year. It is extremely important to review the information on this form since it is your responsibility to submit correct information to the IRS.
No. Internal Revenue Service rules specifically forbid such grants.
Yes. You will be provided with login credentials to access your
donor advised fund through the Local Philanthropic website. Website features
include:
-View the status of your fund including the current value, contribution history,
and grant history.
-Make changes to your contact information.
-Provide information regarding contributions that you intend to make.
-View nonprofit reviews.
-Submit grant recommendations.
-View monthly statements and correspondence such as tax receipt letters.
The following forms help to manage your fund with Local Philanthropic. Completed forms may be returned by mail or fax, or scanned and emailed.
ACCOUNT FORMSPolicies and Guidelines
Open an account
Investment Allocation Questionnaire
Recommend a grant
Make a contribution
LEGAL DOCUMENTS
IRS letter of determination
Articles of incorporation
Bylaws
Conflict of interest disclosure
Privacy Policy
Local Philanthropic Fund, Inc. is a 501(c)(3) public charity. Contributions are tax deductible as allowed by law (Tax ID: 81-5130625).
A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL FREE WITHIN THE STATE, 1-800-435-7352. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE. Florida registration number CH50751.
Local Philanthropic Funds, Inc. has made every attempt to ensure the accuracy and reliability of the information provided on this website. However, the information is provided "as is" without warranty of any kind. Local Philanthropic does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained on this website.
Information is provided for general informational purposes only. This information is intended to aid donors in their giving decisions. However, it is not intended, nor should it be construed, as a replacement for professional legal, tax, accounting, or other professional advice. In no event will Local, its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this Site or for any consequential, special or similar damages, even if advised of the possibility of such damages.
Certain links in this site connect to other websites maintained by third parties over whom Local Philanthropic has no control. Local Philanthropic makes no representations as to the accuracy or any other aspect of information contained in other websites.