Thank you for choosing Greater Houston Community Foundation (Foundation) for your philanthropy. This guide provides information that you will find useful as you give through your Donor Advised Fund.
For almost 30 years, the Foundation has expanded philanthropic impact by partnering with our donors throughout the greater Houston region. We provide individuals, families, corporations, foundations, and advisors with the ability to reach beyond what they could have ever imagined in their giving. We strive to inspire families and educate the next generation of philanthropic leaders as they navigate their quest to do strategic and impactful philanthropy.
As a convener for leading philanthropists, we take great pride in putting our expertise, experience, and stewardship to work. The Foundation has gathered a talented and knowledgeable team of philanthropic professionals to partner with you and ensure that your needs are met with service that exceeds expectation.
As one of Houston’s leading philanthropic grant makers, we are honored to partner with you to make a positive, meaningful, and long-lasting impact in our community.
Stephen D. Maislin President & CEO
PROVIDING INNOVATIVE CHARITABLE VEHICLES
Corporate Donor Advised Funds
Designated & Agency Funds
Donor Advised Funds
Donor Working Groups
Field of Interest Funds
Legacy Funds
Scholarships
Supporting Organizations
FOSTERING STRATEGIC PHILANTHROPY
Center for Family Philanthropy
Corporations – Customized Programs
Family Meetings
Interest-Area Programming & Learning Opportunities
Next Gen Donor Institute
Youth Programming
Community & Corporate Disaster Relief
Corporate Giving Program Support & Management Services
Customized Consulting
Giving Plans
Grants Management
Landscape & Issue Analysis
Nonprofit Research
Private Foundation Services
Topical Convenings
Acceptance of Complex Assets
Charitable Advice & Customized Giving Solutions
Third-Party Investment Management (starting at $500,000)
Greater Houston Community Foundation has built deep relationships for nearly 30 years by honoring donor intent and igniting meaningful change with our clients. We help grow effective philanthropy by connecting donors to the causes they care about and providing excellent stewardship of assets entrusted to us. Our Community Impact Fund expands our collective reach to fuel new strategic investments to make Houston a more vibrant region for all.
The Community Impact Fund supports:
A regional indicators project providing community leaders with credible data on various topics. The analysis and articles on UnderstandingHouston.org illuminate critical issues in the region to inform decision-making and reflect our commitment to using quantitative and qualitative data, evidence, and innovative ideas to invest in.
Data collected from Understanding Houston will fuel new strategic investments in highimpact initiatives addressing a pressing challenge or need in the community to build a more vibrant Houston region. With a strategic lens and through the support of our generous donor community, we can support our neighbors more deeply to tackle growing and shifting needs.
Today, the Foundation continues its 15-year history of impact in disaster recovery. The Greater Houston Disaster Alliance (Disaster Alliance), launched in May 2023, is an actionfocused initiative powered by Greater Houston Community Foundation and United Way of Greater Houston. The Disaster Alliance will build a broader tent of partners and solidify a hub of activity focused on disaster preparedness and resiliency year-round for our region.
Greater Houston Community Foundation donors have been at the forefront of local philanthropy for generations. We have a thriving network of donors who are committed to continuing the philanthropic tradition that has helped Houston thrive. We support the initiatives of these families and individuals with strategies that make giving easy, efficient, and effective.
As the fastest growing philanthropic platform in the U.S., Donor Advised Funds (DAFs) are a simple, yet highly effective and streamlined giving tool. You can contribute as much and as often as you like, and you can distribute grants in the time frame of your choosing. Because of their structure, DAFs allow you to take a tax deduction at the time of your donation without having to immediately decide where to direct it. Our philanthropic advisors and administrative staff give you the same support and expertise as if you were running a private foundation, while removing many details that consume your time and energy. Our donors have 24/7 access to their funds via our secure online donor portal DonorSphere.
A private foundation provides high levels of control over the terms of giving, investment objectives, and tax structuring. Your existing private foundation can partner with our team of top-level specialists in foundation operations, grant administration, and accounting to help you navigate complex giving, philanthropic strategy, and operational issues with a highly personalized approach. If you want to retain your existing team of advisors, our staff will work closely with them to ensure that your grant making strategy and philanthropic platform remain consistent.
The Next Gen Donor Institute is a program for donors who wish to develop a deeper understanding of their philanthropic journey and learn from their peers and community leaders about philanthropic trends and possibilities.
We have established an extensive network of Next Gen donors to help develop a greater culture of altruism within the community. Activities include social and educational events, as well as Community Impact Fund site visits.
The Giving Circle serves as a forum for aspiring Houston philanthropists to explore, develop, and implement the tools of strategic giving. Each year, Giving Circle members collectively decide to focus on one area of need in greater Houston, solicit for and examine grant applications, perform site visits to grant semi-finalists, and ultimately select one or more organizations to support.
Our consulting team has specialized experience and training in multigenerational philanthropy. Our goal is to help you find common ground so that all family members participate actively in your philanthropy. Greater Houston Community Foundation can help you develop a charitable plan that will ensure your philanthropic legacy, whether by passing on your tradition of philanthropy to the next generation or establishing a structure that will fund your chosen priorities for years to come.
The Center for Family Philanthropy (CFP) helps donors amplify their generosity and ensure their legacy. The CFP offers next gen and family programming, consulting services, peer-to-peer connections, and access to best practices in family philanthropy and legacy planning.
§ Provides families best-in-class resources, special programming, infrastructure, and peer connection across generations.
§ Offers families support to ensure their giving brings the family together and enriches the communities they serve.
The Family Giving Circle initiative brings families with children ages 12 and up together to give, learn, and make a difference in the Houston area. The grant making efforts are led by members of the Youth Leadership Team (YLT). The YLT is a great way for 11th-12th graders to develop their values, independent thinking, decision-making power, community knowledge, and leadership skills.
Whether you are opening a scholarship to help students achieve higher education, encourage studies in certain fields, or assist your employees through a corporate scholarship, Greater Houston Community Foundation (Foundation) can help customize your scholarship program to achieve you charitable goals. The Foundation plays an active role in managing several scholarship programs. We utilize industry best practices and offer expert advice in the design and management process to ensure they comply with IRS rules and regulations. We manage the entire process from start to finish, allowing donors to play a passive or active role in the process.
Greater Houston Community Foundation understands the important issues and needs in the community. We are a hub for the local giving community: connecting Houston’s leading donors to an extensive network of nonprofits and innovative solutions for the social sector. We actively convene donors to collaborate and share ideas on philanthropy through a variety of educational and social events throughout the year, including panel discussions and lectures. Together with leading donors, we have created the following platforms for high-engagement philanthropy:
Checks
Checks are received and deposited on a daily basis. Fund designation should be listed in the memo line.
Please notify the Donor Services Department (donorservices@ghcf.org) that gifts are to be expected.
The following information is required to properly credit gifts to your fund.
§ Name of fund to be credited
§ Wire amount and/or number of shares and security to be expected Greater Houston Community Foundation’s (Foundation) policy is to sell securities on the day of receipt, unless the Foundation has specifically agreed otherwise.
Please note that wires and security transfers do not always contain sufficient information for the Foundation to identify the donor and fund involved. All donors must inform the Foundation of any wires or securities transferred. Failure to contact the Foundation may result in a delay in posting gifts to your fund.
All charitable gifts above $250 will receive a tax acknowledgment letter detailing the gift and gift date.
Gifts below $250 do not require a tax acknowledgment letter, but you should retain your canceled check for tax purposes.
Gifts are generally posted to the fund within 2-3 business days from date received and will be reflected online under the Contribution History section of the Activity tab.
Please notify the Donor Services Department or your Philanthropic Advisor regarding any incoming gift.
Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift.
Benefits:
§ Avoid paying capital gains tax on the sale of appreciated stock
§ Receive a charitable income tax deduction
There are special rules for valuing a gift of stock. The value of a charitable gift of stock is determined by taking the mean between the high and low publicly traded stock price on the date of the gift. Mutual fund shares are valued using the closing price for the fund on the date of the gift.
When gifting securities, please notify Greater Houston Community Foundation (Foundation) of the number of shares, the security to be expected, and the name of the fund to ensure proper crediting of the proceeds. It is the Foundation’s policy to sell securities on the day of receipt, if possible. However, there may be times that securities may not be sold until the Foundation has identified their source and the fund allocation.
Donating appreciated real estate, such as a home, vacation property, undeveloped land, farmland, ranch or commercial property can make a great gift to Greater Houston Community Foundation.
Benefits:
§ Avoid paying capital gains tax on the sale of the real estate
§ Receive a charitable income tax deduction based on the value of the gift
Your real property may be given to Greater Houston Community Foundation by executing or signing a deed transferring ownership. You may deed part or all of your real property to Greater Houston Community Foundation. Your gift will generally be based on the property’s fair market value, which must be established by an independent appraisal.
Types of Property:
§ Mortgaged Property Please contact us if the property you wish to give has existing debt or a mortgage. Indebtedness can affect your charitable tax deduction.
§ Difficult Property Gifts Certain properties pose challenges. We have adopted policies to limit the acceptance of certain kinds of real estate. Please check with us before making a gift of real estate so we can explain our gift acceptance policies.
§ Capital Gains Tax Check with us on the capital gains tax implications of your gift. You may also be interested in life income options.
Consider donating part or all of your unused retirement assets, such as your IRA, 401(k), 403(b), pension or other tax-deferred plan, to help further our mission.
Benefits:
§ Avoid potential estate tax on retirement assets
§ Your heirs would avoid income tax on any retirement assets funded on a pre-tax basis
§ Receive potential estate tax savings from an estate tax deduction
Did you know that 60%-70% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis, such as real estate and stock, and give the retirement assets to Greater Houston Community Foundation. As a charity, we are not taxed upon receiving an IRA or other retirement plan assets.
A donation by check, wire, or ACH is a simple and easy way for you to make a gift.
Benefits:
§ You can make an immediate impact on our mission
§ You can take a charitable income tax deduction
Did you know that you can mail a check on December 31st and, even if the check is not received and cashed by Greater Houston Community Foundation until after the new year, the IRS will allow you to take a deduction in the year the check was mailed? The envelope containing the check must be postmarked by 12/31 to apply. Keep this in mind for year-end tax planning!
A gift of your life insurance policy is an excellent way to make a gift to Greater Houston Community Foundation. If you have a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy to Greater Houston Community Foundation. For example, you may have purchased a policy to provide for minor children and they are now financially independent adults.
Benefits:
§ Receive a charitable income tax deduction
§ If Greater Houston Community Foundation retains the policy to maturity, you can receive additional tax deductions by making annual gifts so that we can pay the premiums
§ If Greater Houston Community Foundation cashes in the policy, you will be able to use the proceeds to recommend grants from your Donor Advised Fund
§ If Greater Houston Community Foundation retains the policy to maturity, or you name us as a beneficiary, once the policy matures, the proceeds of your policy will be paid to our organization so that we can use the proceeds to further charitable work
To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include Greater Houston Community Foundation as the beneficiary of your policy.
You can also designate Greater Houston Community Foundation as a partial, full, or contingent beneficiary of your life insurance policy. You will continue to own and can make use of the policy during your lifetime. Your estate may benefit from an estate tax charitable deduction. Your deduction for the gift of life insurance will depend on whether the policy has increased in value above the premiums and whether the policy is paid up or there are remaining payments to be made.
Understanding true donor intent involves understanding donors’ stories, their plans, and the impact they want to have now and in the future. All of our donors have a story and want to make an impact. The Legacy Project can help capture your plans for the future of your philanthropy.
By choosing to incorporate philanthropy into your estate plan, you are ensuring that your legacy of generosity will live on through a future gift. Our team of philanthropic advisors will help you navigate the legacy planning process from start to finish, and provide custom giving options based on what matters to you most.
Meet with us to discuss your charitable goals and vision for the future. Learn more about how Greater Houston Community Foundation can connect caring individuals with the community’s most pressing needs or with the causes closest to your heart.
A Legacy Plan is a document that will guide us in carrying out your future charitable wishes. We can keep it simple or create a detailed plan. Either way, a Legacy Plan can help you to create community impact and preserve your philanthropic legacy for years to come. We offer two main options, which may be used separately or in tandem, depending on your preference and availability.
Staff members can meet with you and guide you through a series of exercises and values-based discussions in order to create a custom Legacy Plan, which will be used to capture background information and instructions for your fund.
Our Legacy Plan workbook is designed to help you chronicle your unique giving story in your own words. The workbook is available in print and digital formats. Using tools like the written exercises in the workbook, you will have the option to craft a custom letter and instructions for Greater houston Community Foundation, expressing your wishes for the future of your fund.
A copy of your Legacy Plan will be kept on file at Greater Houston Community Foundation to govern the future use of your fund. Your Legacy Plan can also include involvement from loved ones or other advisors you choose. You may add to or revisit your Legacy Plan at any time. Most planning services are offered on a complimentary basis. No administrative fees apply until a fund is created.
Minimum amount for grant recommendations is $250. Grants submitted must follow Greater Houston Community Foundation’s Grant Recommendation guidelines listed below.
Eligible Grantees – You may grant to any of the following:
§ 501(c)(3) public charities, schools, government entities, municipalities, and religious organizations anywhere within the United States
§ Any component funds of Greater Houston Community Foundation (i.e., field of interest funds, giving circles, donor working groups)
§ Private operating foundations
Greater Houston Community Foundation is happy to process recurring grant payments on a monthly, bi-monthly, quarterly, or annual basis ($250 minimum per grant payment applies). While making your online grant recommendation, indicate your preferred payment schedule in the “Grant Timing” section. Recurring grant payments are processed once per month. The full payment amount will be applied to your fund balance to ensure the entire commitment is fulfilled.
You may recommend grants to international organizations from your Donor Advised Fund. When granting funds to a nonprofit or entity based outside the United States, community foundations granting from a Donor Advised Fund must pursue one of two established procedures: Equivalency Determination or Expenditure Responsibility. Greater Houston Community Foundation contracts with a third-party vendor to ensure cross-border grant making compliance; additional fees will be incurred to the fund. Please contact your Philanthropic Advisor for additional information.
To ensure that the organizations you wish to support receives your grant(s) prior to December 31st, please submit grant recommendations to Greater Houston Community Foundation prior to the second Friday in December.
Grant recommendations are submitted online using DonorSphere, our secure donor portal. For questions regarding online access to your fund, call the Donor Services Department at 713.333.2210, or email at donorservices@ghcf.org.
Grants are generally processed within one week of submission date, pending no vetting issues/concerns.
1. Donor submits a grant recommendation online through DonorSphere; donor will receive an automatic email confirmation.
2. Grant(s) will be listed online under the Grant Activity section of the Activity tab in DonorSphere.
3. Greater Houston Community Foundation will begin the due diligence process which consists of vetting a grantee’s charity status prior to being approved.
4. All grants processed will be listed online under the Grant Activity section of the Activity tab in DonorSphere.
5. Grant checks are mailed to the nonprofit organization and donor notification emails will be sent to the recommending donor advisor.
There are times that your grant recommendation(s) may take longer due to the vetting process and further information needed from the organization or the donor, for example:
§ Verification of public charity status
§ Mailing address confirmation
§ Grant(s) submitted are below the $250 minimum grant amount
§ Expenditure Responsibility or Equivalency Determination is required
§ Insufficient fund balance
§ Grants(s) submitted above $250,000 from funds invested in Third Party Investments may experience delay. Please notify your Philanthropic Advisor when large grants are anticipated.
The Donor Services Department will notify you via email if there is a delay in processing the grant.
When you recommend grants from your fund, Greater Houston Community Foundation must ensure that your grant distributions are used exclusively for the use and benefit of charitable organizations and programs recognized by the Internal Revenue Service. To this end, Greater Houston Community Foundation continually works to protect the integrity of the charitable tax deductions you received from your gifts to your fund.
The following guidelines help us fulfill our oversight responsibility and ensure the charitable integrity in two areas: special events/memberships and legally binding pledges.
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.
Example 1:
Some charitable organizations promote giving levels. A $2,000 level (for instance, “Platinum Sponsor”) allows the Donor/Advisor to enjoy about $600 worth of benefits and $1,400 goes to support the charity’s mission. The Donor/Advisor cannot recommend a $1,400 grant from Greater Houston Community Foundation and fulfill the rest with a $600 personal check.
Example 2:
A Donor/Advisor would like to recommend a grant for $5,000 from their Donor Advised Fund to support a charitable organization’s annual gala. In return for the grant, the charitable organization gives the Donor/Advisor ten tickets to attend the gala. While the Donor/Advisor can recommend the $5,000 grant from Greater Houston Community Foundation, the Donor/ Advisor must decline the tickets in order to make the gift using the Donor Advised Fund as the tickets would be considered more than an incidental benefit. The charitable organization can acknowledge the Donor Advised Fund in its advertising materials in an effort to recognize the Donor/Advisor for the general support/recognition of the event.
In accordance with IRS Notice 2017-73, Donor Advised Funds may be used to satisfy personal pledges provided that certain conditions are met.
One such condition is that Greater Houston Community Foundation may not communicate to the organization that the grant payment is in fulfillment of a donor’s personal pledge. Accordingly, donors should make no reference to “pledge” or “commitment” at the time of grant recommendation submission. Donors should communicate their intent directly with the organization.
Our intent is to safeguard the deductibility of your gift to Greater Houston Community Foundation and at the same time make your charitable giving easy and rewarding. This policy is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that Greater Houston Community Foundation is not engaged in rendering legal, accounting, or financial advice. If legal advice or other expertise is required, the services of a competent professional should be sought.
With an initial investment of $500,000, donors with Greater Houston Community Foundation may recommend their trusted advisor to manage the assets of their fund. Financial advisors, working in accordance with Greater Houston Community Foundation’s Investment Policy Statement, can help donors meet their financial goals for grantmaking. For more information, or to recommend an advisor, please contact your Philanthropic Advisor.
Donor makes a charitable gift into their fund
Donor
Advised Fund
Financial Advisor provides investment management and transfers funds as needed for grant making
Donor recommends grants to approved charities
Greater Houston Community Foundation currently offers four investment pools, overseen by the Foundation’s Investment Committee, that differ by risk and degree of active managments. Target allocations for those pools are reflected below.
Growth oriented asset allocation aiming for long-term capital appreciation, with current income a low priority
80% global equity, 10% opportunistic credit, 8% global fixed income, 2% cash
Projected manager expenses: 0.22%
Diversified asset allocation approach aiming for growth over the intermediate term, while providing some income or cash flow
60% global equity, 10% alternative / multi-strategy, 10% opportunistic credit, 18% global fixed income, 2% cash
Projected manager expenses: 0.50%
Does not include incentive fees for hedge funds
Income-oriented asset allocation approach aiming for stable and substantial current income and preservation of capital in down markets
30% global equity, 15% opportunistic credit, 53% global fixed income, 2% cash
Projected manager expenses: 0.27%
Only money market investments; goal of capital preservation under all circumstances
100% cash
Projected manager expenses: 0.18%
Donor Advised Funds make giving easy and efficient. Donors (individuals, families, groups, companies, or other foundations) recommend grants from the fund to any Section 501(c)(3) nonprofit organization they wish to support. Grant checks include the name of the fund, and donors determine the level of publicity, including anonymous grants.
In general, Greater Houston Community Foundation does not permit fundraising.
Funds established at Greater Houston Community Foundation are component funds of the Foundation, a Section 501(c)(3) public charity. Contributions other than cash or marketable securities must first be approved by Greater Houston Community Foundation. All contributions to Foundation funds are treated as gifts to a public charity and are generally tax-deductible, subject to individual limitations. Greater Houston Community Foundation does not provide tax or legal advice; we recommend consulting a professional advisor with questions about a gift to Greater Houston Community Foundation.
There is no set-up fee to open a fund at Greater Houston Community Foundation; however, an annual advisory fee, minimum of $1,500, is charged based on the level of assets in your account. Fees are deducted from your account on a monthly basis. Advisory fees support the costs associated with administering your Donor-Advised Fund, including online account management, gift and grant processing philanthropic advising, and educational opportunities. The Foundation reserves the right to change its fee and/or minimum policies at any time.
Fund Balance
The net worth of the fund including all investment assets and any illiquid assets.
The portion of the fund balance that may be used immediately for grant making.
One person per fund who should be contacted first for anything concerning the fund. This individual may or may not have fund advisory privileges.
The individual/company establishing the fund.
This individual has full advisory privileges over a fund, including grant recommendations, investment recommendations, naming the fund, and appointment of other fund advisors and successor advisors (this is the highest level of privilege).
This individual is a second generation fund advisor; he/she has no advisory privileges until after some or all of the Current Advisor(s) are unable to exercise their right to advise the fund.
Successor advisors may appoint further successors. If the successor advisor is a minor, Greater Houston Community Foundation’s Governing Board reserves the right to require that grant recommendations be made by the minor’s legal guardian.
All requests to modify or appoint additional Current Advisors and Successor Advisors to a fund must be communicated to the Foundation in writing. In addition, a written acknowledgment must be received from the Foundation confirming that the request has been granted. If Greater Houston Community Foundation has not received the name(s) of an additional Current Advisor(s) or Successor Advisor(s) to the fund, or other special instructions, in writing, Greater Houston Community Foundation will use the fund’s balance to support its Unrestricted Fund.
This individual has access to fund information, but no fund advisory privileges.
Donors establishing a fund may designate any person over 18 years of age to be an advisor but preferably no more than three. If a fund is advised jointly, upon the death of one fund advisor, the remaining advisor(s) retains the privileges associated with the fund.
Assuming no Current Advisor has privileges, Successor Advisor(s) assume privileges or receive the remaining balance upon the Donor/Founder’s death into a Fund. If no Successor Advisor is recommended or named Successor Advisors do not respond within ninety (90) days after notice, the Fund will terminate, and the balance of the Fund will be transferred to Greater Houston Community Foundation’s Unrestricted Fund. Donor/Founders can name eligible charitable organizations as successors to receive the remaining balance of the Fund. If an organization is not eligible at the time of distribution, its portion is distributed among other qualified Successors Advisors or becomes part of Greater Houston Community Foundation’s Unrestricted Fund if none are named. Failure to establish a succession plan may result in the Fund balance being transferred to Greater Houston Community Foundation’s Unrestricted Fund.
After the death of the original donors, if no contributions have been made to the Endowed Donor Advised Fund and no grants have been recommended from the Fund by the Current/Successor Advisors for a period of five (5) years, and after the Current/Successor Advisors have been notified by the Foundation staff, the balance of the Fund will be placed into Greater Houston Community Foundation’s Unrestricted Fund or a Field of Interest Endowed Fund. These funds will be used at the discretion of the Board of the Foundation for the purpose of improving the quality of life of the residents in the greater Houston community.
During a divorce, separation, or annulment, if both spouses are Current Advisors to a Fund, Greater Houston Community Foundation can pause grant distribution recommendations. The suspension can end if both spouses agree in writing or establish an acceptable alternative procedure. With approval, the spouses can create separate successor Funds, each with one spouse or Successor Advisor. If there is no agreement or legal resolution, the Foundation can divide the Fund equally, with each spouse or Successor Advisor managing their respective Fund. However, Greater Houston Community Foundation will wait at least six months from the filing date of the divorce, separation, or annulment before taking such action.
An individual nominated in an account’s succession plan to act as account advisor when all Current Advisors either choose not to serve or are otherwise unable to act due to incapacity. A Successor Advisor has no account privileges until the Foundation receives written proof of incapacity (for example, a copy of an uncontested durable power of attorney with respect to the incapacitated Current Advisor and a written letter or certificate from a physician verifying the Current Advisor’s incapacity), or resignation of all Current Advisors. At that time, the Successor Advisor will be notified by Greater Houston Community Foundation that he or she is now a Current Advisor with full privileges. If the Successor Advisor accepts the nomination, he or she has the option to draft a new succession plan and nominate new successor advisors. If no Successor Advisor has been recommended by a Donor/ Founder, then upon the death of the last Current Advisor, any remaining balance in the fund will become part of Greater Houston Community Foundation’s Unrestricted Fund.
A Spending Policy is established to ensure the availability of grant making dollars to Greater Houston Community Foundation (Foundation) in perpetuity. Annual fund grants are subject to the Foundation’s current spending policy. A copy of the Foundation’s current Spending Policy as contained in the Foundations Investment Policy Statement is available upon request.
Fully expendable: the entire fund balance is available for grant making.
Grants must be for charitable purposes, and those grants may be recommended to any 501(c)(3) organization or verified charitable entity (e.g. schools, religious institutions) located in the United States, or to any nongovernmental organization outside of the United States having a verifiable charitable purpose. All grants directed outside of the United States must comply with federal government regulations and must otherwise conform to all relevant U.S. federal and state laws. Grants may also be given for charitable purposes to non-501(c)(3) organizations if the charitable expenditure can be verified through a process called expenditure responsibility. Expenditure responsibility is required for any organization not described in IRS Section 170(b)(1) (A), including for-profit companies, private operating foundations, and disqualifying supporting organizations
Grants given to all 501(c)(3) public charities within the United States must be for a minimum of $250. Grants given outside the United States or requiring expenditure responsibility within the United States must be for a minimum of $5,000. Grant checks sent to organizations are accompanied by a grant letter specifying the name of the fund and the fund advisor’s name(s) unless requested otherwise by the donor or fund advisor and as approved by Greater Houston Community Foundation (Foundation). The fund advisor’s address may also be included on all letters if requested by the fund advisor. Mail that the Foundation receives for the fund will not be forwarded. Approved grants are typically sent within 10 business days of the recommendation being received or the fund advisor will be notified for the reason of the delay.
The Foundation shall assume responsibility for check writing, bookkeeping, investment management, tax reporting, auditing and evaluation of projects, and for making available to the fund advisors and fund representatives reports of fund income, expenses, and grant making, as deemed appropriate.
In compliance with the Internal Revenue Code, grants are not permitted to individuals; for non-charitable purposes; for political contributions or to support political campaign activities; or for any purpose that would provide benefits, goods, or services to a donor of the fund, the fund’s advisor(s) or other related parties. A fund advisor is subject to IRS penalties if the fund’s donor(s), advisor(s) or other related parties receive benefits, goods, or services in connection with a grant recommendation. This includes grants to satisfy pledges made by any person, including a fund advisor, and non-deductible (or partially tax-deductible) memberships, tickets, sponsorships, registration fees in tournaments, and cause-related market activities. Grants are not allowed to private non-operating foundations. Please contact your Philanthropic Advisor if you have questions about the exclusion of benefits from grant recommendations and/or multiple-year payments.
Greater Houston Community Foundation does not permit expense reimbursements, loans, compensation, or other similar payments from a Donor Advised Fund to any donor, fund advisor, or related party.
Unless pursuant to a separate agreement with Greater Houston Community Foundation (Foundation), Funds that grant more than 80% of their initial fund balance within 12 months of being established will be assessed a 3% pass-through fee on the total amount granted from the fund, with a minimum of $500. The Foundation’s Governing Board sets policies and fees to ensure that all Funds pay their share of the costs of the Foundation.
The majority of Funds remain at the Foundation for extended periods of time, and their fees support operational costs. It is expected that all Funds pay their fair share, and to do otherwise would be to shift the administrative burden unfairly to those Funds whose founders/advisors have made a long-term commitment to meeting the needs of our community.
Inactivity occurs when no recommendations for grants from the fund or gifts made into the fund are received for a period of three consecutive years and the fund advisor cannot be contacted. Greater Houston Community Foundation (Foundation) staff will attempt to contact the fund advisor at least three times, including once via certified mail. If contact cannot be made, the Foundation’s Governing Board will recommend grants that will align with the founder and/or advisor’s intent for the fund or to support the Foundation’s Unrestricted fund.
A fund advisor may recommend closing a fund by granting up to 100% of the fund balance to a qualified charitable organization, including any of Greater Houston Community Foundation’s (Foundation) Funds (e.g., fields of interest funds, endowment funds,operating funds). Such recommendations must be received in writing and, if approved, funds will be disbursed in accordance with the Foundation’s current grant making policies and applicable laws and regulations. Closing a fund by recommending a grant to another qualified charitable organization which is approved will occur as follows: 80% of the current balance will be granted within 10 business days of the request date, barring any issues with the organization’s status as a qualified public charity or equivalent. The Foundation will calculate any outstanding administrative fees, process the final grant within the following 45 days, and the fund will be closed. Endowed Funds are permanent and cannot be closed.
In the event of an inconsistency between these terms and conditions and any terms and conditions appearing elsewhere in connection with any fund, these terms and conditions, as interpreted by Greater Houston Community Foundation (Foundation), shall govern, and the Foundation reserves the right to take any actions at any time which, in its discretion, it deems reasonably necessary or desirable for the proper administration of any fund at the Foundation or to comply with applicable law.
Greater Houston Community Foundation (Foundation) does not allow Donor Advised Funds to purchase business holdings. The Foundation recognizes the provision included in the Pension Protection Act (PPA) regarding excess business holdings. That is, the holdings of a Donor Advised Fund in a business enterprise, together with the holdings of persons who are disqualified persons with respect to that fund, may not exceed any of the following:
§ Twenty percent of the voting stock of an incorporated business
§ Twenty percent of the profits/interest of a partnership or joint venture or the beneficial interest of a trust or similar entity
§ Ownership of an unincorporated business that is not substantially related to the fund’s purposes
The Foundation will identify and monitor any new gift to a Donor Advised Fund of any interest qualifying as an “excess business holding” under the PPA, and will accept such gifts as appropriate according to the Foundation’s Gift Acceptance Policy. The Foundation will exercise its best possible price within five years of the date of the gift as required under the PPA. In any event, the Foundation will dispose of any excess business holdings prior to the five year time limit, except in the event the Treasury Department grants an additional five year holding period. The Foundation will notify potential donors of such interests of this requirement prior to the gift of such interest.
Gift assets that require special review, such as real estate, limited partnership interests, or closely-held stock, may incur additional fees to cover tax, legal, or other expenses associated with the transaction.
The donor(s) agree to comply with any written direction by Greater Houston Community Foundation (Foundation) to cease recommending grants or distributions or conducting activities that may jeopardize the Foundation’s tax status or otherwise subject the Foundation or the fund to excise taxes that are applicable to Donor Advised Funds as defined in the Internal Revenue Code Section 501(c)(3).
The donor(s) hereby certify that all information presented in connection with this agreement is accurate to the best knowledge of the donor and will promptly notify Greater Houston Community Foundation in writing of any changes.
Greater Houston Community Foundation (Foundation) will make grants from the fund to carry out the charitable purposes of the fund in accordance with IRS Code 501(c)(3). The Foundation is generally unable to make reimbursements to any individual for expenditures or to make a grant or distribution for any non-charitable purpose or to any non-charitable entity under the provisions of IRS Code 501(c)(3). Advisors wishing to recommend any such reimbursement, grant, or distribution should discuss it with the Foundation’s Donor Services Department before engaging in any activity that might otherwise lead the donor(s) to an expectation that such payment would be appropriate.
The donor(s) understand and acknowledge that any Endowed fund created under this agreement (with Greater Houston Community Foundation or any of its affiliates or supporting organizations) is a permanent fund and that only the spendable fund balance will be available for granting.
The donor(s) understand that the establishing gift and any subsequent gifts to Greater Houston Community Foundation for the purpose of establishing the fund will constitute an irrevocable gift and is not refundable.
Tools, equipment, and software used by Greater Houston Community Foundation (Foundation) to provide service to the fund shall remain the property of the Foundation and/or its licensors, and no right, title, license or interest in any of them is conveyed to the fund by this agreement.
Greater Houston Community Foundation (Foundation) agrees that it will acknowledge to donors all gifts to the fund of $250 or more in accordance with the guidelines established by the Internal Revenue Service. Generally, the IRS requires taxpayers to complete and file form 8283 with their federal income tax return for gifts of property valued at $5,000 or more. It is the donor’s responsibility to obtain a qualified appraisal for all gifts other than cash and marketable securities for tax deduction purposes.
The donor(s) acknowledges and agrees that they have been advised by Greater Houston Community Foundation (Foundation) that current IRS regulations or rulings permit fund advisor(s) to designate investment preferences but require the Foundation to retain final discretion regarding such investments. The donor(s) understands that investments will be administered in accordance with the Foundation’s rules and procedures.
The donor(s) acknowledges that the investments in the fund are subject to market and interest rate fluctuations and may be commingled with assets of other Funds for investment purposes. The total investment return of each investment managed is net of its operating expenses.
In consideration of Greater Houston Community Foundation (Foundation) creating a fund at the request of the donor(s) or entity and for other good and valuable consideration, the donor(s) hereby agrees to indemnify and hold harmless the Foundation against any liability, cost, or expense which the Foundation may incur by reason of its acting upon instructions or recommendations given to the Foundation by any donor(s) or by persons authorized to make recommendations with regard to the fund.
It is understood that the fund to be established pursuant to this agreement will be subject to the provisions of the Certificate of Formation, Bylaws and other rules, regulations, and procedures of Greater Houston Community Foundation (Foundation) which are now in effect and which may be adopted or amended, or both including but not limited to the power reserved by the Governing Board to modify any condition or restriction on the grant of Funds if, in its sole judgment (without the approval of any trustee, custodian, or agent), such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the area served by the Foundation.
Subject to the provisions of the paragraph herein entitled “Variance Power,” the fund agreement and any addenda attached hereto shall constitute the entire agreement of the parties and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. Subject to the provisions of the paragraph herein entitled “Variance Power,” the fund agreement, including any exhibits or attachments hereto, may not be amended or modified, except in a writing signed by all parties to this agreement.
This agreement shall be governed by the laws of the State of Texas, excluding its choice of law principles.
Visit our website at www.ghcf.org and click on the Login button on the toolbar at the top of the page. This will take you directly to the DonorSphere login page. To visit the DonorSphere login page directly, visit ghcf.donorsphere.org/login. Your username is your email address that Greater Houston Community Foundation has on file.
You may recommend as many grants as you wish. The minimum per grant amount is $250. It should be noted that Funds are required to maintain a $5,000 minimum balance to maintain an active grant making Donor Advised Fund.
You may recommend grants to any 501(c)(3) public charity, including schools, religious institutions, and/ or government entities.
To recommend a grant from your fund, click on the Grant icon on the toolbar at the top of your screen. From there, you will choose a grantee, fill out the appropriate grant information, choose how to be recognized, and determine when you would like the grant to be processed.
By way of the grant recommendation form on DonorSphere, Greater Houston Community Foundation will need the grantee organization’s name, contact information, grant amount, and grant purpose (should you wish to include a purpose). Information for many organizations are currently stored in DonorSphere. Please verify the contact information when you submit your grant recommendation.
Grants are generally processed within one week of submission date. There are times that your grant recommendation may take longer due to the vetting process or further information needed from the organization or the donor advisor. Should your grant take longer than one week, you will be notified via email with further information.
By way of DonorSphere, you can view updates to your grant recommendation. The recommending donor advisor will also receive an email confirmation once the grant has been processed.
What if the organization I wish to support is not listed in DonorSphere?
Select the search icon in the top navigation bar and click the link under the search for a grantee tab to enter your unlisted grantee’s information.
May I make a grant recommendation to pay for a pledge?
Grants from Donor Advised Funds may be used for fulfillment of a personal pledge under certain conditions. See Page 13 for more information for the pledges FAQ.
I want to make grants to a childcare organization, but I am not familiar with any. Can Greater Houston Community Foundation help me identify some grantee organizations?
Greater Houston Community Foundation’s Philanthropic Services team can be contacted for further research or advice on finding qualified grantees or creating a grant making strategy. Please contact your Philanthropic Advisor for additional assistance.
May I use my Donor Advised Fund to purchase tickets to an event or to pay for membership?
Greater Houston Community Foundation will not approve grants that are intended to cover any portion of a gift that would result in anything more than an incidental benefit accruing to an individual, including benefits associated with fundraising events (including but not limited to gala table sponsorships, tickets to an event, 5K race registrations, goods at a charitable auction, museum memberships, etc.). A Donor/ Advisor who wishes to receive goods or services (such as tickets to an event) offered by a charity in exchange for a contribution of a specified amount can make the contribution directly, without the involvement of the Donor Advised Fund. Please refer to page 12 for more information.
What if I forget my DonorSphere password?
You can reset your password by clicking on the Forgot Password link on the DonorSphere login screen. You will receive a reset password link to your email address on file. Please follow that link to reset your password.
May I recommend a recurring or multi-year grant?
Yes. At the time of your grant recommendation, please indicate your preferred payment schedule in the “Grant Timing” section. The amount field should include the full grant amount to the grantee organization. Greater Houston Community Foundation processes payments once per month. You can see scheduled future payments in DonorSphere.
May I recommend grants to organizations located outside the United States?
Yes, Greater Houston Community Foundation can help you facilitate international grants. Additional fees will be incurred; please contact the Donor Services Department or your Philanthropic Advisor for additional assistance.
Who can recommend grants from the Donor Advised Fund I established?
Anyone listed as a fund advisor on your fund agreement can recommend grants from the fund. If you would like to add additional advisors to the fund, please contact the Donor Services Department. An advisor must be at least 18 years of age. Professional advisors may be given read-only access to the information available in DonorSphere.
Can I ever change the name of the Donor Advised Fund I established?
Yes. Greater Houston Community Foundation can change the name of a fund. Please contact the Donor Services Department for additional assistance.
Why don’t I receive thank you letters from organizations I support through my fund?
Greater Houston Community Foundation (Foundation) includes in the grant letter the name of your fund along with your preferred mailing address at the time a grant is processed, unless you requested your grant to be anonymous. In addition, we ask grantee organizations to not send any mail to fund advisors in care of the Foundation. It is suggested that you contact organizations directly if you would like to be on their mailing list. You are also welcome to include in the “Donor Comments (Optional)” section during your grant recommendation if you would like the Foundation to request that the grantee organization send you a thank you letter.
May I encourage others to give to my fund?
Anyone can contribute to an established fund. Many advisors have requested that, in lieu of gifts, contributions be made to their philanthropic fund in honor of their birthdays, anniversaries, etc. You can informally solicit family and friends; however, organized fundraising activities (e.g., events, raffles, walks, etc.) on behalf of the fund are not permitted. Checks should be made payable to Greater Houston Community Foundation with your fund name listed in the memo line. Please contact your Philanthropic Advisor or the Donor Services Department for a copy of our Fundraising policy.
Who owns the assets once the gift is made and the fund is opened?
The assets in Donor Advised Funds are maintained, operated, and legally controlled by Greater Houston Community Foundation (Foundation). Individual donors can advise how funds are invested and distributed, however the Foundation has full discretion and control over the use and investment of the Donor Advised Fund’s assets.
How can I make additional gifts to my fund?
Gift Instructions can be found on page 6. For an electronic version of the gift instructions, please visit Greater Houston Community Foundation’s website at www.ghcf.org
I recently moved and want to update my file at Greater Houston Community Foundation. Is there a way to do this on DonorSphere?
Donors can update their contact information and charitable interests through the DonorSphere system. Click on Options at the top far right of the screen and then click User Profile. There, you will be able to update your contact information and, indicate your charitable interests.
What happens to my fund when I am no longer living?
There are many options for succession planning regarding your fund. A donor advisor can recommend that the balance in a fund be divided among a variety of charities, or that successor advisors (such as children or grandchildren) inherit the privilege of making recommendations from the fund. Please contact your Philanthropic Advisor or the Donor Services Department for guidance on establishing a legacy plan for your fund.