Planned Giving

Convoy of Hope Fund: More Details

Complete Gift Description

The Convoy of Hope Fund is a donor advised fund created by Convoy of Hope that provides a simple, flexible, and efficient way to manage your charitable giving. You can establish a personal Convoy of Hope Fund by making a gift of cash, marketable securities, real estate or other assets of $5,000 or more. Using appreciated assets is especially tax-wise since it allows you to avoid capital gains on the appreciated value. This maximizes your giving dollars because it enables you to utilize the full market value of your donated asset.

While your gift is irrevocable, and is in the full control of Convoy of Hope, you can recommend that grants be made from your account in the amounts and at times you suggest. Distribution can be made to Convoy of Hope and other qualified 501(c)(3) charitable organizations, subject to Convoy of Hope's approval. Convoy of Hope handles the rest—including all administrative details—freeing you to focus on all you hope to accomplish through your giving.

In the meantime, your donation is invested to produce income on the balance in your account. Convoy of Hope will provide you with quarterly statements summarizing investment and grant distribution activities.

If you desire, you can name other individuals to make formal grant recommendations from your account during your lifetime

A simple way to give hope throughout the world

The Convoy of Hope Fund is a donor advised fund created by Convoy of Hope that provides a simple, flexible, and efficient way to manage your charitable giving. You can establish a personal Convoy of Hope Fund by making a gift of cash, marketable securities, real estate or other assets of $5,000 or more. Using appreciated assets is especially tax-wise since it allows you to avoid capital gains on the appreciated value. This maximizes your giving dollars because it enables you to utilize the full market value of your donated asset.

While your gift is irrevocable, and is in the full control of Convoy of Hope, you can recommend that grants be made from your account in the amounts and at times you suggest. Distribution can be made to Convoy of Hope and other qualified 501(c)(3) charitable organizations, subject to Convoy of Hope's approval. Convoy of Hope handles the rest—including all administrative details—freeing you to focus on all you hope to accomplish through your giving.

In the meantime, your donation is invested to produce income on the balance in your account. Convoy of Hope will provide you with quarterly statements summarizing investment and grant distribution activities.

If you desire, you can name other individuals to make formal grant recommendations from your account during your lifetime—thus involving children and other family in your philanthropic decision-making. Additionally, you can recommend where funds are to be distributed at your death or you can nominate other individuals to make grant recommendations after you are gone. In doing so, you can ensure that your good work is carried on after your lifetime and establish a legacy of giving in your family.

Essentially, a Convoy of Hope Fund can provide you with some of the benefits associated with a family foundation, without the costs and administrative requirements normally associated with starting and managing one.

There are a number of situations where a Convoy of Hope Fund will provide you with a solution to meet your goals. A Convoy of Hope Fund may simply free you from paperwork and allow you to be more efficient in your giving, or provide you an alternative to a private foundation. For some people, it provides a practical way to teach their loved ones about philanthropy.

If you are looking to sell a business, liquidate real estate holdings or sell appreciated stock to balance your portfolio a Convoy of Hope Fund gives you the ability to make a sizeable gift now, receive an immediate tax deduction, while allowing you the flexibility to further define your giving goals and implement them over time.

In summary:

A Convoy of Hope Fund is a simple and flexible way to manage your charitable giving. It:

  • Provides you with an immediate tax deduction
  • Eliminates the long-term capital gains tax liability on appreciated assets
  • Allows you to make a contribution now without having to decide immediately where and how the money is to be used
  • Allows you to recommend grants on your timetable - eliminates year-end tax pressures
  • Frees you from time-consuming paperwork to focus on your giving goals
  • Gives you one easy point of contact to manage your giving to multiple charities
  • Enables you to choose be recognized or remain anonymous
  • Allows you to involve your family and leave a legacy of giving
  • Provides many of the benefits of a private foundation without the legal, administrative or reporting requirements

Getting Started

  • Make an irrevocable contribution of $5,000 in cash or other assets to Convoy of Hope
  • Sign the Convoy of Hope Fund Agreement

Ongoing Activities

  • Make recommendations on grant distributions to Convoy of Hope and other approved charities – determining timing, amount, recognition and designation
  • Convoy of Hope acts on the recommendations, in accordance with its distribution policies
  • Convoy of Hope administers the fund, writes the checks and makes the distributions in your fund's name, unless you prefer an anonymous gift
  • You receive documentation of all distributions made within each period, and statements on the balance of your fund
  • Meanwhile, the assets in your fund grow tax-free
  • You can make additional gifts of $1,000 or more to your Fund at any time
  • You can involve family members in your decision-making process or give them the right to recommend distributions
  • You may appoint successor advisers to continue your legacy of generosity after your lifetime

Creating a Convoy of Hope Fund is a simple and flexible way to support your favorite charities today and build a lasting legacy for tomorrow.

NOTES:

  • We review your recommendations for distributions, and approve them unless they would benefit you or your family, or an organization whose values are in conflict with those of Convoy of Hope's.

Policies

  1. Minimum initial contribution: $5,000
  2. Future contributions to your account in amounts of $1,000 or more
  3. Minimum amount for recommended grants: $500 each
  4. Minimum annual distribution requirement: At least 10% of the total distributions must be allocated to one or more of Convoy of Hope's projects or where most needed by Convoy of Hope.
  5. Gifts of real estate, closely held stock, limited partnership interests, and personal property will be accepted, subject to Convoy of Hope's gift acceptance policies.
  6. Costs directly related to the holding of non-cash assets or the liquidation of non-cash assets will be charged against your Fund balance.
  7. Convoy of Hope will give each distribution request full respect and consideration, and involvement by donors in the distribution review process is both welcomed and encouraged. In approving distribution requests, Convoy of Hope may consider several criteria, including recommendations by Convoy of Hope's Board of Directors and independent investigation by Convoy of Hope staff.
  8. Distribution requests to qualified IRC section 501(c)(3) charitable organizations will generally be approved, unless those requests are to organizations whose mission or activities are contrary to the Christian ethos and core values of Convoy of Hope.

Is This Gift For You?

A donor advised fund is for you if one or more of the following apply:

  • You regularly support Convoy of Hope as well as other charitable organizations.
  • You have appreciated assets you'd like to liquidate, but would like to avoid the capital gain tax liability.
  • You would like the simplicity of a central source for your giving, but are concerned about the expenses of starting and maintaining a private foundation.
  • You would like to secure a charitable deduction now, but defer decisions about the beneficiaries of your gift.
  • You want to engage your family in your traditions of philanthropy.

For more information

Email Dan Rice at drice@convoyofhope.org, or call me at 850-776-2789 so that we can assist you through every step of the process.


The material presented on this Planned Giving website is not offered as legal or tax advice.
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