Giving in the News: Switching From Private Foundations to Donor-Advised Funds

Jilian Mincer highlights the trend of givers transferring their private foundations to donor-advised funds in a recent Wall Street Journal article.

In the article, Mincer highlights the fact that moving one’s foundation assets into a fund causes substantial tax savings (meaning more to give), cost benefits, additional privacy, and higher levels of flexibility. Donors can be more focused on where and how they give charitably, rather than spending time on administrative duties.

Ms. Mincer also highlights the potential drawbacks why some might not like the idea of abandoning the private foundation model – primarily lack of independence and total control. She cites, for example, the legal requirement that all grants from funds be directly made to charitably exempt organizations, as opposed to individuals and groups that aren’t officially recognized as such by the IRS. This is an accurate point. At Servant, however, we’ve partnered with benevolence ministries such as Helping Hands Ministries to channel tax-deductible gifts to qualified individuals. We’ve also seen that givers prefer the freedom from the administrative details of the private foundation. In the example cited in the article, a donor that had typically spent several weeks each year on foundation maintenance was able to reduce that by 75%. And all of that time can be focused on the actual giving of grants.

You can read the entire article here.

Giving in the News: WSJ’s Four Ideas for Tough Times

Shelley Banjo at the Wall Street Journal wrote Sunday that though giving has been down significantly in 2009, givers have four strategies that the WSJ has found to be effective:

1. Donating portions of required IRA distributions (for donors age 70 1/2 and older)
2. Giving Stocks and Bonds
3. Dip into a Donor-Advised Fund
4. Make charitable loans

You can read the entire article here.

Your thoughts: what is true generosity?

At its most basic, generosity is the overflow of a heart filled with God’s spirit. But how do we tell the difference between generosity and the other fruits of the Spirit? As Jesus pointed out in the parable of the widow’s mite, it’s not a matter of quantity, but of the state of the giver’s heart. Generosity is joyful giving, but that doesn’t mean it comes easily or without pain.

Maybe generosity is not a point on the map, where we’ll arrive one day after much straining. Instead, maybe generosity is more like a journey, marked by ever increasing giving of our money, our time, our talents, ourselves. Generosity is what happens when we let go of our idols and take hold of the life God intends for us.

Aimee Minnich

New Receipting Changes Beginning Nov. 11

We are pleased to announce a new feature for fundholders to receive electronic notifications when new contributions are posted. Instead of receiving hardcopy receipts, donors who have an active email address on file with us will be sent an alert when contribution receipts are available online. An email will be sent as soon as the contribution has been posted to the fund, giving our donors faster access to their documents. This new service will take effect November 11. If you would prefer to continue to receive your contribution receipts through US Mail, please contact Jonathan at jharrison@servantchristian.com.

This change will not affect givers who already receive their statements in the US Mail, and friends or supporters who give to another’s fund will continue to receive paper receipts.

Upgrades such as these help the foundation wisely allocate limited resources. In 2008 alone, 4,060 receipts were mailed (approximately 78 per week). These upgrades also allow donors faster access to their documents in a securer format.