In a donor-advised fund, individuals or institutions set up accounts by making an irrevocable contribution to the fund (a 501-c-3 public charity). Donors receive an immediate tax deduction for the amount of the gift.
If the donation is made in appreciated securities, the donor also avoids capitals gains tax. Funds are then invested and may appreciate tax free, and donors may recommend gifts to non-profit charities on their own timetable.
Most donor-advised funds have $10,000 to $100,000 minimums, but Calvert Giving Fund’s minimum is $5,000.
Calvert Giving Fund offers:
- socially responsible investment options, allowing donors to invest in socially responsible mutual funds managed by Calvert Investments,
- community investing options, which allow donors to recommend investment in community development non-profits with Calvert Foundation’s Community Investment Note,
- Through Giving Folios, donors can access research on non-profits
Calvert was in the news last month when it published the final list of its Calvert Social Index members following its annual reconstitution (see Calvert Finalizes Social Index Reconstitution ).