Closer to Home

Steps to move your donor advised fund to the community foundation

At Community Foundation of the Gunnison Valley, we work with a wide range of donors who want to support favorite charities and causes they care about. Sometimes we meet with individuals and families who have already begun their charitable giving journey by establishing a donor advised fund (DAF) at a national charitable sponsor or commercial provider. 

Over time, many donors discover that they want something more. They want to learn about local needs, connect with nonprofits making a difference in their community, involve family members in giving decisions, and work with people who understand the place they call home. For these donors, transferring a DAF from a national charitable sponsor or a commercial provider to CFGV can be a natural next step.

The good news is that moving a DAF is often easier than people expect. Here is a simple guide to the process.

Step 1: Start a conversation with your CFGV team

The first step is simply to reach out. Your CFGV team can learn about your charitable interests, answer questions, and explain how a DAF at CFGV can support your goals. 

Many donors are surprised to learn that a community foundation offers not only the convenience of a DAF, but also local knowledge, philanthropic expertise, and a long-term commitment to strengthening the community.

Step 2: Map out a fund that reflects your values

Everything we do here at CFGV is driven by shared values and our vision of a community where CFGV inspires and connects people so everyone can thrive. One of the most enjoyable parts of the process for many donors is disucssing your values, developing your family’s charitable vision, and then designing a fund that reflects those values and your vision. You can choose a fund name, such as the Smith Family Fund or Smith Family Foundation, designate fund advisors, and discuss how future generations might become involved. Many donors use this opportunity to create a structure that encourages family conversations about generosity and community impact, tapping into the CFGV’s resources and expertise.

Step 3: Establish your new DAF

CFGV will provide a simple fund agreement that outlines how the fund will operate and who may recommend grants to nonprofit organizations. The process is typically straightforward, and the CFGV team will guide you through each step.

Step 4: Recommend a grant to make the transfer from your current DAF

Once your new fund is established at CFGV, you can contact your current DAF provider and recommend a grant to CFGV for the benefit of your newly created fund. In many cases, this can be completed online and requires only a few minutes.

Step 5: Confirm the details

To help ensure a smooth transfer, be sure to use the exact name of your new fund and any instructions provided by CFGV. Our team will gladly help coordinate the details and answer any questions that arise along the way.

Step 6: Decide how much to transfer

Some donors transfer the entire balance of an existing DAF at once. Others prefer to transfer a portion first and move additional assets later. There is no one-size-fits-all approach. The right decision depends on your charitable goals, giving plans, and personal preferences. Some donors even choose to maintain their existing DAF at a commercial provider while also establishing a separate locally-focused DAF or other charitable fund at CFGV.

Step 7: Put your philanthropy to work in the community

After the transfer is complete, you can begin recommending grants from your CFGV DAF. “The Hub,” CFGV’s fund portal makes it easy to get started. Our team is also always here as a sounding board and resource if you have questions! You may already support several favorite local nonprofits, and our team is happy to discuss both these organizations and new organizations that might have caught your attention. Many donors find that this deeper connection to the local community—and to professionals who understand it—becomes one of the most rewarding aspects of their giving.

The upshot here is that any DAF can help you organize and simplify your charitable giving. By moving your fund to CFGV, you also gain a local partner committed to helping you make a lasting difference close to home, while also knowing that any administrative fees paid by your DAF support the year-round work of CFGV, empowering nonprofits to reach their full potential and engaging on important community issues.

If you’d like to explore whether a transfer makes sense for you and your family, your CFGV team would be delighted to start the conversation!

The team at CFGV is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This blog post is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.