Many clubs or individuals may have explored the idea of establishing their own foundation, but been discouraged by the time, financial cost or energy of the initiative.
The Kiwanis International Foundation offers donor advised funds as an alternative. It allows individuals, families, clubs and districts to make grants for specific purposes while also providing donors with the opportunity to support the fund through irrevocable tax-deductible gifts. A donor advised fund also avoids setup costs, excise tax, staffing needs and other restrictions placed on private foundations.
It’s a way for individuals or clubs to establish their own named fund that can be regularly supported and produces an annual spendable amount that can be granted. It accomplishes many of the goals of a club or individual foundation without the cost in time and money.
The minimum amount required to establish a donor advised fund with the Kiwanis International Foundation is US$10,000 and the fund must reach a total of US$25,000 before grants can be awarded to ensure that the fund is strong enough to support a significant annual disbursement. The grant distribution amount is determined by the Kiwanis International Foundation’s investment policies, and is currently set at four percent.
For more information on donor advised funds, visit the Kiwanis International Foundation’s website, email us at [email protected], or call 1-800-KIWANIS, ext. 234 (U.S. and Canada) or +1-317-217-6234 (worldwide).