Opening an Account
- How do I establish an ACP Charitable Gift Account?
- What should I do before establishing an account and making a charitable contribution?
Funding an Account
- Does ACP require specific contribution amounts?
- What happens when ACP receives my contribution?
- Will I receive a receipt for my contribution?
- What types of assets can I contribute to ACP?
- How often may I contribute to my account?
- Are additional contributions to ACP tax-deductible?
- Can I contribute privately held company stock to ACP?
- Can I contribute appreciated real estate to ACP?
- What other types of assets can I use to open or fund an account?
Tax Deductions
Grant Recommendations
- Is there a minimum grant amount?
- Are there any restrictions on grant nominations?
- How do I nominate a grant to charity?
- Once I submit a Nominate a Grant to Charity form, how long does it take to process the request?
Miscellaneous
- Why might I, or we as a family, choose to contribute to the ACP Charitable Gift Fund over other giving vehicles?
- Where can I find an overview of ACP Charitable Gift Fund policies and procedures?
- Is ACP a nonprofit organization?
- What are administrative fees used for?
- How does the ACP Board of Directors choose the funds included in the Charitable Gift Fund pools?
- How often does ACP report to donors?
- How can I request a copy of ACP’s documentation, like a copy of the 990?
How do I establish an ACP Charitable Gift Account?
To establish an account, complete an ACP Account Application [PDF available upon request] and submit it along with your initial contribution (minimum initial contribution is $5,000 for individual accounts). ACP will accept contributions of cash or publicly traded securities, including stocks, most mutual fund shares, and bonds. Cash contributions must be denominated in U.S. dollars and delivered by check or wire.
What should I do before establishing an account and making a charitable contribution?
As you Establish an ACP Charitable Gift Account, you will be asked to:
- Take some time to review the ACP Procedure Guide.
- Decide who will be involved in the account. You may set up an account as an individual or with other donors, such as family members. You may also name additional nominators, who will share your authority to recommend grants. A nominator may submit grant recommendations and request the rebalancing of investment pools.
- Consider a name for your account. For instance, you can honor your family (The Johnson Family Fund) or highlight your charitable goals (The Johnson Fund for the Arts).
Does ACP require specific contribution amounts?
Individuals may establish an account with a minimum initial contribution of $5,000. For Charitable Gift Accounts established by multiple donors, the initial contribution must total an aggregate of at least $5,000; each donor to such a joint Charitable Gift Account does not need to contribute $5,000 individually.
What happens when ACP receives my contribution?
When a contribution is received and accepted, ACP will assess the liquidity needs of the donor’s charitable gift account and then make the appropriate investment allocation based on the assessment.
Will I receive a receipt for my contribution?
Yes, ACP will provide written confirmation of your contribution. This confirmation will serve as your receipt for tax purposes. Please note since you are eligible for a tax deduction at the time you make your contribution to the ACP Charitable Gift Fund, any other receipts or acknowledgements you may receive (e.g., from a public charity to which you recommended a grant) are duplicative and cannot be used for tax purposes.
What types of assets can I contribute to ACP?
ACP will accept contributions of cash or publicly traded securities, including stocks, most mutual fund shares, and bonds. Cash contributions must be denominated in U.S. dollars and delivered by check or wire.
How often may I contribute to my account?
As often as you would like. Some donors like to make additional contributions immediately after recommending grants. Others make regular contributions to build up the account for future grant recommendations.
Are additional contributions to ACP tax-deductible?
Yes. You will be eligible for an itemized income tax deduction for a charitable contribution on the date the contribution is made. This is subject to the deductibility limitations set by law. Please consult your legal or tax advisor to review your personal situation. Please note that since you are eligible for a tax deduction at the time you make your contribution to the Gift Fund, any other receipts or acknowledgements you may receive (e.g., from a public charity to which you recommended a grant) are duplicative and cannot be used for tax purposes.
Can I contribute privately held company stock to ACP?
Contributions of privately held company stock are reviewed and accepted on a case-by-case basis. Please contact us for more information.
Can I contribute appreciated real estate to ACP?
Contributions of appreciated real estate are reviewed and accepted on a case-by-case basis. Please contact us for more information.
What other types of assets can I use to open or fund an account?
Requests to make contributions of other types of assets, in addition to those mentioned above, will be reviewed by the ACP Board of Directors on a case-by-case basis. Please contact us for more information.
What are the limitations on charitable deductions?
Under the Internal Revenue Code, deductions for charitable contributions are subject to certain “percentage limitations” that limit the deductions that can be taken to a stated percentage of adjusted gross income (AGI) in the year the deduction is taken. (Contributions in excess of these percentage limitations may be carried forward up to five subsequent years.) Because the Charitable Gift Fund is a public charity, the percentage limitations that apply are generally the most favorable charitable deductions available under IRS regulations. Deductions for contributions of long-term capital gain property (such as appreciated securities held for more than one year) are limited to 30% of AGI. Deductions for all other contributions (including contributions of cash) may be taken up to 50% of AGI. Your ability to take itemized deductions may be subject to certain other limitations. Please contact your tax advisor to determine your tax deductibility limits.
Is there a minimum grant amount?
The Board has set minimums on grant distributions to maintain cost-effectiveness and to encourage charitable giving. The minimum grant is $250, or the balance of the account if less.
Are there any restrictions on grant nominations?
Grants will be made only from ACP to U.S. charitable organizations that are tax-exempt public charities, or to U.S., state or local government organizations qualified to receive tax-deductible charitable contributions, such as state colleges or universities. (See the ACP Procedure Guide for specific tax code designations.)
Further, ACP will not approve grants that: are directed to foreign charitable organizations (unless they have a domestic affiliate); fulfill a donor’s pre-existing pledge to a charity; provide private benefit to the donor or any other individual; support lobbying, political campaigns or other political activities; or are for any purpose that is not entirely charitable.
How do I nominate a grant to charity?
Please see our Grant Requests page for information on nominating a grant to charity.
Once I submit a Nominate a Grant to Charity form, how long does it take to process the request?
ACP is pleased to provide a quick turn-around for requests. Approved nominations will generally arrive at the doorstep of the charitable organization within two weeks.
Why might I, or we as a family, choose to contribute to the ACP Charitable Gift Fund over other giving vehicles?
Many donors appreciate the flexibility and administrative simplicity of recommending grants through a Donor Advised Fund. Many also like the ability to receive tax deductions when they need them, and the potential to see their charitable dollars grow, which means they are able ultimately to recommend more to their favorite charities.
Where can I find an overview of ACP Charitable Gift Fund policies and procedures?
The ACP Procedure Guide provides an overview of policies and procedures.
Is ACP a nonprofit organization?
The American Center for Philanthropy is a tax-exempt nonprofit organization and public charity under Internal Revenue Code Section 501(c)(3).
What are administrative fees used for?
The administrative fee charged to all accounts goes toward the Charitable Gift Fund’s general operating expenses. ACP’s Board of Directors reviews and approves administrative fees annually.
How does the ACP Board of Directors choose the funds included in the Charitable Gift Fund pools?
ACP has delegated the investment of funds to a registered investment manager, Carlson Capital Management. ACP has sole responsibility and authority for investing ACP’s assets and may change the allocation of the assets at any time. No sales loads or commissions are charged against purchases or liquidations of monies invested in ACP Charitable Gift Accounts. Prospectuses for the registered mutual funds underlying the investment portfolios are available from ACP upon request.
How often does ACP report to donors?
All account-holders receive quarterly reports that include a donor’s account balance, and details on year-to-date contributions and distributions. You will also receive an annual report that summarizes all account activities that can be used for tax reporting purposes.
How can I request a copy of ACP’s documentation, like a copy of the 990?
Please click here for the 990 and other documents.