DonorsTrust: Building a Legacy of Trust

Conversations on Philanthropy is a publication of “The Project for New Philanthropy Studies,” a Special Program Fund administered by DonorsTrust.  DonorsTrust is a donor-advised fund established to safeguard the charitable intent of donors who are dedicated to promoting liberty through limited government, personal responsibility, and free enterprise.  Like a community foundation, DonorsTrust offers philanthropic services to assist donors in accomplishing their charitable goals.  The Trust, however, sets itself apart by supporting a philosophic community rather than a particular geographic location and by providing a protective philosophical boundary around the charitable capital in its care.  DonorsTrust is the only national donor-advised fund with a specific commitment to preserving donor intent and supporting organizations that promote liberty.

Various accounts and services are available through DonorsTrust—Donor-Advised Funds, Strategic Venture Funds, and Special Program Funds.  All three are designed to help individuals, private foundations, and corporations meet their philanthropic goals.  Donor-Advised Funds are the Trust’s flagship service, and function like a charitable bank account.  They allow donors to claim an immediate tax deduction, and take their time making thoughtful charitable decisions.  DonorsTrust provides investment options for charitable assets held in donor-advised accounts, writes grant checks at the donor’s request, keeps track of grants made from each account, and provides donors with quarterly statements detailing account activity.  While the main selling points of a donor-advised account are the immediate tax deduction gained and the administrative burden avoided, there are other benefits such as anonymity, superior tax treatment of stock gifts, foundation payout assistance, and protection of donor intent through bequest gifts.  DonorsTrust’s goal is to make giving easier, more tax efficient, and more reliable for donors who wish to promote liberty through their charitable giving. 

 Strategic Venture Funds and Special Program Funds allow donors to pool their resources and engage in programmatic work through DonorsTrust.  Strategic Venture Funds allow donors to pool financial resources in support of a particular initiative or area of interest like health care, higher education, or environmental reform.  These accounts are usually established by a donor or group of donors, who are targeting a particular issue via a portfolio of nonprofits they would like to support in furtherance of their philanthropic goals.

 Special Program Funds allow donors and policy entrepreneurs to focus solely on the work of the project without spending precious time and resources on management issues and IRS compliance. They are donor-initiated and donor-funded projects that are incubated and administered by DonorsTrust at the pleasure of its Board of Directors.  DonorsTrust provides fiscal sponsorship and handles the administration of these programs.  These funds have proven to be an excellent means of incubating new ideas and allowing donors to collaborate and pool resources.

For more information about the advantages of using DonorsTrust to make your giving more safe, efficient, and principled, contact DonorsTrust at 703.535.3563 or visit our Website www.donorstrust.org.