Easy Giving: Transferring Donor Advised Funds to Greater Houston Community Foundation
As a trusted professional advisor, your role extends beyond managing financial wealth; it encompasses guiding your clients toward meaningful, impactful giving that aligns with their values and long-term legacy goals. In today’s dynamic philanthropic landscape, donor advised funds (DAFs) have emerged as a powerful charitable vehicle, offering flexibility, tax advantages, and ease of use. While many clients are familiar with the concept of DAFs through national or online platforms, they may not realize the significant benefits of partnering with a local community foundation, such as Greater Houston Community Foundation.
By collaborating with the Community Foundation, which is deeply rooted in the local landscape, you can unlock a wealth of tailored services, strategic insights, and community connections that elevate your clients’ charitable impact, making their giving more targeted, sustainable, and aligned with their personal and family values.
Why Consider Transferring a DAF to the Community Foundation?
In our ongoing conversations with professional advisors, we have discovered a common gap: some advisors are unaware that their clients, who have established donor advised funds through national financial institutions, can seamlessly transition their giving to a local community foundation—such as Greater Houston Community Foundation—to unlock additional benefits and individualized support.
Transferring is more straightforward than many realize, and the benefits are substantial. Partnering with the Community Foundation offers the same tax and administrative advantages as national providers, with added local insights and tailored services that elevate your clients’ philanthropic experience:
Tax & Administrative Equivalence
- Tax Deductibility: Favorable treatment for gifts of cash, securities, real estate, and other assets, aligned with IRS regulations.
- Third-Party Investment Management: For funds of $500,000 or more, donors may choose to have assets managed by their preferred financial advisor, with Community Foundation oversight.
- Online Account Management: Clients can easily monitor fund balances, contributions, and grants through a user-friendly online donor portal.
- Streamlined Grantmaking: Simplified processes for recommending grants to qualified charities.
- Consolidated Tax Reporting: Single-year-end statements that compile all contributions and grants for ease of recordkeeping.
Continue reading: Understanding the New Tax Law: Impacts on Philanthropy
The Added Value of a Local Partnership
Beyond administrative convenience, Greater Houston Community Foundation offers unique, responsive, and high-touch services that can significantly enhance your clients’ philanthropic strategies:
- Expertise in Noncash Gifts: Guidance on structuring donations of appreciated assets, real estate, closely-held business interests, and estate gifts.
- Deep Community Knowledge: Insight into local needs, nonprofit effectiveness, and high-impact grantmaking to ensure funds make a meaningful difference.
- Collaborative Opportunities: Connect with other donors, participate in educational forums, and engage with local and national thought leaders.
- Issue-Focused Engagement: Opportunities for clients to become involved in specific initiatives, fostering meaningful connections and legacy building.
- Family Giving: Guidance on developing a shared vision and engaging younger generations in philanthropy through youth programming and initiatives like the Next Gen Donor Institute.
- Corporate Strategies: Opportunities for businesses to partner with the Community Foundation to design and manage tailored philanthropic strategies—from corporate donor advised funds and employee engagement programs to scholarship funds and impact reporting—that align giving with corporate values and community priorities.
Continue reading: 30 Ways We Amplify Giving
Simplified Transfer Process
Transferring a DAF is designed to be straightforward:
- Establish a donor advised fund at Greater Houston Community Foundation: Our team will guide you through simple paperwork, allowing customization to match existing arrangements or set new successor advisors. Additionally, for ease, the Community Foundation offers the use of third party management for funds over $500,000.
- Request a Transfer: Coordinate with your current provider to request a grant of the existing fund balance—most providers facilitate this online.
- Complete the Transfer: Transfer the funds, which is a tax-neutral event, often allowing the full balance or most of it to be moved at once.
- Finalize and Begin Giving: Download transaction histories for tax purposes before closing the previous account.
Continue reading: Donor Advised Funds Tax Benefits
Maximizing Your Clients’ Philanthropic Potential
Partnering with Greater Houston Community Foundation means more than just a new fund, it’s a strategic partnership to maximize your clients’ philanthropic potential. Our local presence, deep community roots, and dedicated team of philanthropic advisors position us to serve as a trusted partner in shaping impactful, sustainable giving strategies.
For professional advisors, this partnership brings additional value: access to charitable giving expertise, monthly newsletters with timely insights, invitations to educational events, and opportunities to connect through our professional advisor network. Together, we can help your clients give with greater purpose, efficiency, and impact.
We invite you to reach out to Andrea Mayes, Senior Director of Charitable Solutions, to explore how the Community Foundation can support your clients’ philanthropic ambitions. From strategic grantmaking to legacy giving, Greater Houston Community Foundation is committed to helping your clients realize their philanthropic vision with personalized service, local insight, and a commitment to community vitality.
Additional Resources:
- Learn more about the Community Foundation and how we can support your clients’ philanthropic goals.
- Join our professional advisor mailing list to stay up-to-date on the latest news and insights from the Community Foundation.
More Helpful Articles by Greater Houston Community Foundation:
- The Importance of a Strong Philanthropic Network
- Integrating Philanthropy into High-Income Tax Planning
- The Business of Good: Taking Corporate Giving to the Next Level
- DAFs & Private Foundations: Addressing Common Misconceptions
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