Donor Advised Fund Basics

The Moravian Ministries Foundation (MMFA) is excited to help individuals, couples, and families create Donor Advised Funds to benefit the Moravian ministries and other causes they care about most. When you create a Donor Advised Fund (DAF) through MMFA, you make an irrevocable gift and retain the privilege of making grant recommendations over time. You are eligible for an immediate charitable income tax deduction upon funding the account based upon the tax rules for gifts to a public charity. MMFA will invest the funds and handle administrative matters for the individual accounts including but not limited to check writing, charity due diligence and verification, statement production, and all gift acknowledgements.

Who can create a donor advised fund?

Individuals, families, companies, foundations, and other entities can start a DAF account by contributing assets.

What is the account minimum for the Moravian Donor Advised Fund?

$5,000

What are the limitations on naming a donor advised fund?

We ask that donors not use the terms “trust” or “foundation,” otherwise, naming is up them

How long does it take to create a donor advised fund?

48-72 hours – MMFA will require a signed gift account application and upon funding, the account will be opened.

Can my account continue on after I enter the more immediate presence of the Lord?

Yes – you may have successor grant advisors (children, friends, etc.), you can also create a perpetual fund that pays named charitable beneficiaries a percentage each year, or you can make a direct gift of the balance of your account to one or more named charities.

What are the investment choices for the DAF?

MMFA currently offers four different investment pools with blend of mutual funds. 

Does MMFA charge fees to manage a DAF?

Yes, we charge an annual fee of 1% for administration (charged yearly in January) and .69% for investment management (annual fee charged pro-rata on a monthly basis)

Can I donate assets other than cash, stock, and mutual funds?

Yes, MMFA will consider any asset that can be gifted including but not limited to privately-held stock, real estate, restricted/controlled stock, tangible personal property, etc.  Some assets may require additional due diligence steps on the part of MMFA and MMFA reserves the right to refuse assets that may cause a loss or risk to the Foundation or the entities we serve.

How often can I make contributions to my account?

As often as you would like but please notify MMFA that assets are being sent (i.e. the check for $10M is in the mail)

How often can I make grant requests?

Monthly – MMFA sends checks monthly to donor advised fund grantees.  Any request received by the last business day will be distributed the following month.

I already have a donor advised fund with my local community foundation.  Can I transfer that DAF to the Moravian Donor Advised Fund with MMFA?

Most of the time the answer is yes.  Most providers, i.e. sponsoring charities, allow DAF to DAF transfers.  You would simply make a grant request from your current DAF to your new donor advised fund account with MMFA.

Can I make an anonymous grant from my donor advised fund account?

Yes – you may also recommend a grant in someone’s honor or memory

Can my company match grants that I recommend from my DAF or can I contribute to my DAF as part of a community support campaign for my employer?

Usually, yes – please check the policies of your company.

Are there restrictions on grants from the Moravian donor advised fund?

Yes – at least 50% of the grant dollars must be to Moravian churches or entities, otherwise you are free to grant to any public charity.

What is the minimum grant amount?

$100 – all grant request must be at least $100.

Can I recommend a grant from my donor advised fund to attend a charity event or for an auction or golf tournament?

No – when you make your initial contribution to your DAF, that contribution is 100% tax deductible because you do not receive goods or services in exchange for the donation.  Attendees at charity events benefit from those events by receiving food, gifts, awards, etc. so those grants cannot be approved.

Can someone else make a gift to my donor advised fund account?

Yes – unless you specifically restrict it, anyone can make donations to a DAF account.  This is a great tool for weddings, Christmas gifts, memorials, etc.

 

To download a Donor Advised Fund agreement form, please click here. To view our Donor Advised Fund policies, please click here. For more information about creating a DAF, please contact Chris Spaugh, MMFA president, at 888-722-7923 or via email at daf@mmfa.info.