Frequently Asked Questions
General Questions
What is a donor-advised fund?
A donor-advised fund is a charitable giving account that allows you to support the causes you care about, now and over time.
You contribute assets to your fund, which are tax-deductible, and recommend grants to eligible nonprofit organizations when you choose. Funds can be invested for potential tax-free growth, helping extend your long-term charitable impact.
Donor-advised funds simplify giving by consolidating donations, recordkeeping, and tax reporting into a single account.
How can I give anonymously and still recieve a tax deduction?
People have many reasons for wanting to keep their charitable giving private, and a donor-advised fund offers a way to increase the privacy of your giving. Any contributions to your DonorsTrust account that have to be reported to the IRS will not become public information, and DonorsTrust never publishes the names of its donors. When making grants, you have the option to send your grant anonymously to the receiving charity; it will simply come to the charity as a gift from a DonorsTrust advisor who wishes to remain anonymous.
Can DonorsTrust help me reduce the capital gains tax liability associated with my appreciated stock, closely held stock, or unexpected windfall?
Appreciated Stock
If you own appreciated stock and want to distribute it to one or more charities and avoid incurring capital gains tax, make a single transfer of stock to DonorsTrust and receive the market value for your gift. Then, at your leisure, request DonorsTrust to distribute gifts from the contribution.
Closely Held Stock
If you possess closely or privately held stock, DonorsTrust can help you avoid incurring capital gains tax while giving you the greatest possible tax deduction. Contribute the stock to DonorsTrust and calculate your tax deduction based on the market value of the stock rather than the cost basis. At your leisure, make any number of charitable gifts from the balance of your contribution. Because of the complexities involved, it is important to engage experts at DonorsTrust as early as possible if you seek to donate closely held stock.
Unexpected Windfall
If you would like to give to charity to reduce your tax burden but don’t have time to think through all the details right now, open an account at DonorsTrust to immediately receive a full tax deduction for your contribution. Then, you can disburse charitable gifts from your account at your leisure and across multiple years if you wish.
I would like to secure my charitable intent after my lifetime. What can DonorsTrust do on my behalf?
Do you wonder if your heirs will donate your hard-won earnings to causes with which you disagree? Open a DonorsTrust account and write a specific charitable intent statement—even listing what charities you will or won’t fund. Give your family the opportunity to preserve your intent as successor advisors to your account and rely on DonorsTrust to protect and enforce it.
For Nonprofits
How can my organization receive a grant from DonorsTrust?
DonorsTrust grants are guided by the recommendation of our donor advisors. All groups receiving funds must be a 501(c)(3) public charity in good standing with the IRS. Further, we are likely to decline grant requests to organizations that take more than 25% of annual revenues from government sources and/or that actively work to expand the size and scope of government.
DonorsTrust does not accept unsolicited requests for grants.
Can my organization be pre-approved to receive future grants?
We do not offer pre-approval. Rather, new grantees are reviewed at the time a donor advisor recommends a gift to the organization. If the charitymeets the criteria noted above, the request is advanced to our Board of Directors for approval. Once approved, grantees stay on the “approved” list for three years, at which time they are eligible for re-approval.
How do I thank a donor who gave to us through DonorsTrust?
If the donor chose to share contact information with you in the grant transmittal letter or if it is from someone with whom you already know, please feel free to contact the donor directly.
Some donors may choose to give anonymously. While we can’t share further information on the identities of these individuals, we are happy to send along a thank you note if you wish.
Note that any gift from DonorsTrust is just that—a gift from DonorsTrust and not from the recommending donor for legal and tax purposes. No tax receipt should be provided to the donor who recommended the grant, as that donor’s tax-deductible gift occurred when he or she contributed to the fund at DonorsTrust.
Do you accept donor referrals?
Absolutely. We are always eager to help you solve your donors’ problems, be it a tax situation, donor intent concerns, planned giving questions, or the desire for greater privacy. Reach out to anyone on our team, email tellmemore@www.donorstrust.org, or call us at 703-535-3563.
How do I update my organization’s information with DonorsTrust?
Use the Contact Us form below to share that information with our team. Thank you for helping us to keep our records up to date!
Comparing DonorsTrust
Comparing DonorsTrust
| Feature/Concern | DonorsTrust | Big-Box Donor-Advised Funds |
|---|---|---|
| Grant Approvals | Gives only to organizations that do not work against the principles of limited government, personal responsibility, and free enterprise. | May give to causes that conflict with your principles. May deny grants for ideological reasons. |
| Donor Intent and Legacy Protection | Written donor intent statements honored during life and forever after death. | No binding commitment to follow donor intent beyond legal minimums. Future boards may redirect funds. |
| Values Alignment | Focuses solely on conservatives, libertarian, and faith driven donors and their charities. | No mission alignment guarantees. |
| Grant Review Process | Every grant is vetted to ensure it aligns with the donor’s stated principles. | Review is typically limited to legal compliance which means that funds could be applied to causes that work against a donor’s values. |
| Personal Service | Personalized guidance with direct access to senior staff and expertise; no call centers or AI chatbots. | Limited personal relationships, call centers, and virtual assistants. |
| Community | A network of like-minded donors and experienced staff providing opportunities for collaboration and idea sharing. | No shared values-based donor community. |
| Tax Benefits | Immediate tax deduction, capital gains savings, and growth potential. | The same – but without values alignment, community expertise, or donor intent protections. |
| Privacy and Anonymity | Donor names are never publicly listed and grants can be made anonymously. | Grantor information can be disclosed in public reports or via 990 filings. |
| Feature/Concern | DonorsTrust | The Other Guys |
|---|---|---|
| Legacy Planning | Ensures donor intent and principles live on after death through managed legacy accounts. | Legacy often diluted by later generations’ shifting values or management. |
| Cost Efficiency | No startup costs; low administrative fees; no annual excise taxes. | Significant setup and annual costs including legal, accounting, and staffing. |
| Compliance Headaches | No 5% payout deadline. | A private foundation’s 5% payout deadline is 12 months after the end of its tax year. This means if the foundation has a calendar year tax year, it must distribute at least 5% of its previous year’s assets by December 31st of the following year. |
| Complete Privacy | Grants can be made anonymously and donor names are not publicly disclosed. | Must file public IRS Form 990 with donor and grantee details. |
| Values Alignment | Grants only to organizations that align with liberty, personal responsibility, and free enterprise–never to groups that undermine them. | Depends entirely on family oversight; can drift from founding values over generations. |
| Community and Network | Experienced advisors with deep connections connecting you with grantees that can help you achieve your goals and are aligned with your values. | Isolated to family and internal trustees. |
| Feature/Concern | DonorsTrust | Community Foundation |
|---|---|---|
| Values Alignment | Grants only to organizations that align with liberty, personal responsibility, and free enterprise–never to groups that undermine them. | Generally broad and often supporting progressive causes; no guarantee of ideological alignment. |
| Protection of Donor Intent | Donor intent is rigorously documented and protected for life and beyond through written intent statements and governance structures. | Often no formal mechanism to protect intent once the donor passes. |
| Complete Privacy | Grants can be made anonymously and donor names are not publicly disclosed. | Typically lists donor names publicly; limited anonymity options. |
| Cost Efficiency | No startup costs and low administrative fees. | Moderate fees, often higher than DonorsTrust. |
| Flexibility and Control | Donors retain full advisory privileges—decide when and where to give, with expert support from senior staff | Moderate control; grants must align with the foundation’s community priorities. |
| Legacy Planning | Ensures donor intent and principles live on after death through managed legacy accounts. | Legacy merges into general funds or is redirected at the foundation’s discretion. |
| Community and Network | Experienced advisors with deep connections connecting you with grantees that can help you achieve your goals and are aligned with your values. | Broad, ideologically diverse donor community with no shared philosophical base. |
Let’s Start the Conversation
Want to learn more about DonorsTrust’s services? Reach out to receive more information, have your questions answered, or speak with a philanthropic advisor.