Donor Advised Funds in Houston

Greater Houston Community Foundation is the preferred partner for donor advised funds in the Houston area. A donor advised fund is a simple, yet highly effective giving tool that allows you to personalize your contributions and recommend grants to the causes most important to you.

Donors Making a Difference

“One of the greatest things about the foundation is that it will live well beyond any of us. Having a place where you can have your funds deposited, which you know will be safe and last for literally generations to come, is real peace of mind.”

David Weekley

“My donor advised fund at Greater Houston Community Foundation is more than a legal structure – they are my philanthropic partner. I have also found value in Greater Houston Community Foundation’s flexibility and offering of custom solutions. For example, the Foundation allows my trusted financial advisor to manage the donor advised fund investment portfolio. Most of all, I appreciate Greater Houston Community Foundation’s willingness to explore innovative ways to help me achieve meaningful impact.”

Molly Gochman (Donor)

Why Partner With Greater Houston Community Foundation For Your Donor Advised Fund

Greater Houston Community Foundation is the region’s preferred provider of donor advised funds. By partnering with us for your donor advised fund, you can feel confident that every dollar you invest is positioned for deep community impact. Together with fellow fundholders, you’re making the city of Houston better one donation at a time.

Personal Care and Philanthropic Advising

Our philanthropic advisors work with you directly, providing a high level of personal care and attention. We can help you strategize your giving to maximize your impact while removing many details that consume your time and energy. We also offer a variety of services designed to amplify the positive impact donors have across the Greater Houston region and beyond including disaster relief funds, family philanthropy, foundation services, legacy and planned giving, and scholarship funds.

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24/7 Access to Your Funds

Our donors are able to access their funds and make grants at any time they choose via DonorSphere, a secure online donor portal. This intuitive, modern platform gives you the ability to customize and generate reports on your giving history. Additionally, DonorSphere provides real-time integration with CharityCheck and GuideStar reports to support your charitable research efforts.

Dorothy Able, Avani Narang, Randa Weiner, Roxann Neumann

Broaden Your Philanthropic Network

It’s a well-known sentiment that we are better together. This is especially true when it comes to our philanthropic impact. When you partner with Greater Houston Community Foundation for your donor advised fund, you gain access to both our specialized team of industry experts and our broad network of like-minded leading philanthropic individuals and families, local Houston nonprofits, and charitable businesses — all working together to develop a greater Houston.

We Accept Complex Assets in Donor Advised Funds

Unlike many donor advised fund providers, Greater Houston Community Foundation accepts donations of complex assets including business interests, life insurance policies, real estate, closely-held stock, and more. Not only can this lessen the capital gains tax burden on these assets, but it also allows you to make a greater impact on the causes that matter in our communities by using illiquid assets.

Make An Investment in Houston

At Greater Houston Community Foundation, your donor advised fund fees cover more than just setting up and administering your fund. You also gain access to a spectrum of philanthropic strategizing and advising services, including charitable consulting, all aimed to help you spark meaningful change in your community and encourage philanthropic conversations in generations to come. Additionally, you are supporting a Houston-based 501(c)3 nonprofit organization that has a positive impact on our city through critical disaster relief and recovery as well as community leadership initiatives like Understanding Houston, an important regional data indicators project.

Work With Your Investment Manager

Have a trusted relationship with an investment management team supporting you today? You can continue to work with your own partners on the investment of assets in your donor advised fund. This is a service available for all donors with $500,000 or more in their funds. Alternatively, donors may select from a diverse group of investment pools managed by a leading investment management firm and overseen by a committee of Houston’s most respected investment professionals.

Looking to learn more about donor advised funds and how opening one with Greater Houston Community Foundation could benefit you? We’ve put together some important information about how donor advised funds (DAFs) at the Foundation can help you maximize your impact while integrating seamlessly into your current financial plan.

How does a donor advised fund work?

So, how does a donor advised fund work? Donor advised funds operate through a very straightforward process that begins when you establish an account with a sponsoring organization like Greater Houston Community Foundation:

Make a contribution. You can fund your charitable account with various assets—cash, publicly traded securities, or more complex non-cash holdings like business interests and real estate, which can all be in play. This initial contribution generally qualifies for an immediate tax deduction.
Consider your investment options and watch it grow. While you’re deciding which Houston-area charities or national organizations to support, your contribution can be invested according to your preferences. Any potential growth occurs tax-free, increasing the amount available for charitable causes and maximizing your impact.
Recommend grants. When you’re ready, you can suggest grants to qualified nonprofit organizations of your choice. Qualified charities could include local Houston community organizations, educational institutions, or national charities, all informed by your timeline and priorities.

The streamlined nature of donor advised funds allows donors to support multiple charitable organizations through a single charitable vehicle that integrates easily into existing financial structures. Though ease of use is only one of the many benefits of giving through donor advised funds.

Continue reading: What is a donor advised fund?

What are the benefits of donor advised funds?

Donor advised funds owe their popularity to a number of distinct benefits. Choosing to open a donor advised fund with Greater Houston Community Foundation can mean the following benefits for donors:

	Key advantages	What this means for you
Tax efficiency	Immediate tax deductions in the contribution year Ability to donate appreciated assets Consolidated tax documentation	Reduce your tax burden now, distribute to charities later Minimize capital gains taxes on appreciated securities Simplify tax preparation with a single receipt
Strategic giving	Flexible grant timing Customizable recognition options Professional philanthropic resources	Research organizations thoroughly before committing funds Choose to be identified or remain anonymous per grant Access expert guidance for more informed giving decisions
Investment potential	Tax-free growth of contributed assets Long-term philanthropic impact Maximum charitable dollars	Grow your charitable funds without tax liability Create greater impact through strategic investment Direct more resources to causes rather than to taxes

Whether you want to contribute by making qualified charitable distributions or donating appreciated stock, donor advised funds can give you the flexibility to make a difference in the best way for you.

How donor advised funds may complement your investment strategy

DAFs can effectively integrate into complex financial and estate plans, and even enhance overall investment approaches.

Strategic asset donations. Contributing long-term appreciated securities directly to your DAF instead of selling them first can provide dual benefits—you may qualify for a tax deduction based on the full market value while potentially avoiding capital gains tax on the appreciation.
Diversification opportunities. When rebalancing your investment portfolio, consider using appreciated securities for DAF contributions as part of your overall strategy.
Investment alignment. At the Foundation, you can choose one of four asset allocations based on your needs and risk tolerance, or for accounts with a balance over $500,000, you can utilize your preferred investment advisors.
Consolidated philanthropy. Investors can simplify their financial planning by centralizing previously disparate charitable giving channels into a single philanthropic vehicle.

How donor advised funds can help you reach your philanthropic goals

Donor advised funds through Greater Houston Community Foundation provide Houston philanthropists with practical tools for more intentional giving:

Multi-charity support. Easily recommend distributions to multiple organizations from a single charitable account.
Philanthropic continuity. Establish succession plans that can continue your charitable legacy beyond your lifetime.
Intergenerational involvement. Engage your family members in philanthropic discussions and create a culture of giving by involving them in the grant recommendation process.
Sustainable giving. Contribute during financially advantageous years while maintaining consistent support for causes over time.
Local community investment. The Foundation can help you refine your impact locally by supporting Houston-area nonprofits with strategic, well-considered distributions.

Important considerations before opening a donor advised fund

While donor advised funds come with countless benefits for donors, there are, of course, considerations to be made.

Advisory relationship. When contributing to a DAF, you have recommendation rights but not legal control over the assets. While your sponsoring organization is your partner in determining how donations are distributed, they technically maintain final authority over distributions.
Administrative expenses. DAFs typically assess fees based on account balance. While these fees are generally reasonable (often around 1% or less), you should know they exist.
Distribution requirements. Unlike private foundations, DAFs don’t have mandatory annual distribution requirements, which has led to discussions about inactive charitable assets.
Permanent contributions. Once you donate to a DAF, the contribution is irrevocable, meaning you cannot retrieve the assets under any circumstances.

How do donor advised fund tax deductions work?

Are donor advised funds 100% tax deductible? Contributions to donor advised funds qualify for tax deductions, subject to a few important IRS guidelines. The rules on deduction limits can be complex, but the most important things to remember are:

Cash contributions are generally deductible up to 60% of your AGI.
Long-term appreciated securities or other qualified assets typically allow deductions up to 30% of your AGI.
If your contribution exceeds these annual limits, excess deductions can typically be carried forward for up to five additional tax years.

Note that once you’ve claimed the tax deduction, contributions are irrevocable and dedicated exclusively to charitable purposes.

Maximize your impact by connecting your philanthropic and financial advisors

For donors seeking to optimize both financial and charitable objectives, coordination between financial and philanthropic advisors can create some powerful synergies, including:

- Comprehensive planning. When financial advisors collaborate with Greater Houston Community Foundation, the Foundation can better develop strategies that consider both your financial position and charitable impact.
- Strategic asset selection. In collaboration with financial advisors, the Foundation can identify the most advantageous assets for charitable contribution, potentially increasing both tax benefits and philanthropic impact.
- Cohesive legacy planning. Guidance from your current professional advisors helps make sure your philanthropic vision integrates seamlessly with your broader estate and legacy plans.
- Strategic contribution timing. Advisors can recommend ideal timing for contributions based on income fluctuations, tax considerations, and significant life events.
- Effectiveness evaluation. Giving your advisory team access to the analysis of your philanthropic effectiveness can only help ensure that your charitable giving achieves your intended outcomes.
Third-party investment management. We collaborate with professional advisors and welcome third-party investment management for funds with $500,000 or more. With us, you can continue your established relationships and allow your invested assets to reach new heights.

Ready to simplify your giving while maximizing your impact? Reach out to Greater Houston Community Foundation’s team of experts to set up your donor advised fund today. You can call us at 713-333-2210 or reach out directly to get started.

Frequently Asked Questions

What is a Donor Advised Fund?

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.

What Are the Benefits of Establishing a Donor Advised Fund With Greater Houston Community Foundation?

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

How Much Does It Cost?

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

How Do I Start a Donor Advised Fund?

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 [email protected], 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.

How Are My Fund Assets Invested?

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.

Tell Me About Performance Returns

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

Can I use my donor advised fund to make a grant in support of a fundraising event?

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.

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Donor Advised Funds in Houston.