Closer to home: Steps to move your donor-advised fund to the Community Foundation

At the Community Foundation, we work with a wide range of donors who want to support favorite charities and causes they care about. Sometimes we meet with individuals and families who have already begun their charitable giving journey by establishing a donor-advised fund at a national charitable sponsor or commercial provider. 

Over time, many donors discover that they want something more. They want to learn about local needs, connect with nonprofits making a difference in their community, involve family members in giving decisions, and work with people who understand the place they call home. For these donors, transferring a donor-advised fund from a national charitable sponsor or a commercial provider to the Community Foundation can be a natural next step.

The good news is that moving a donor-advised fund is often easier than people expect. Here is a simple guide to the process.

Step 1: Start a conversation with the community foundation

The first step is simply to reach out. The Community Foundation team can learn about your charitable interests, answer questions, and explain how a donor-advised fund at the community foundation can support your goals. Many donors are surprised to learn that a Community Foundation offers not only the convenience of a donor-advised fund, but also local knowledge, philanthropic expertise, and a long-term commitment to strengthening the community.

Step 2: Map out a fund that reflects your values

One of the most enjoyable parts of the process is designing a fund that reflects your family's charitable vision. You can choose a fund name, such as the Smith Family Fund or Smith Family Foundation, designate fund advisors, and discuss how future generations might become involved. Many donors use this opportunity to create a structure that encourages family conversations about generosity and community impact, tapping into the Community Foundation’s resources and expertise.

Step 3: Establish your new donor-advised fund

The Community Foundation will provide a simple fund agreement that outlines how the fund will operate and who may recommend grants to nonprofit organizations. The process is typically straightforward, and the Community Foundation team will guide you through each step.

Step 4: Recommend a grant to make the transfer from your current donor-advised fund

Once your new fund is established at the Community Foundation, you can contact your current donor-advised fund provider and recommend a grant to the community foundation for the benefit of your newly created fund. In many cases, this can be completed online and requires only a few minutes.

Step 5: Confirm the details

To help ensure a smooth transfer, be sure to use the exact name of your new fund and any instructions provided by the Community Foundation. Our team will gladly help coordinate the details and answer any questions that arise along the way.

Step 6: Decide how much to transfer

Some donors transfer the entire balance of an existing donor-advised fund at once. Others prefer to transfer a portion first and move additional assets later. There is no one-size-fits-all approach. The right decision depends on your charitable goals, giving plans, and personal preferences. Some donors even choose to maintain their existing donor-advised fund at a commercial provider while also establishing a separate locally-focused donor-advised fund or other charitable fund at the Community Foundation.

Step 7: Put your philanthropy to work in the community

After the transfer is complete, you can begin recommending grants from your Community Foundation donor-advised fund. Our team is always here as a sounding board and resource if you have questions! You may already support several favorite local nonprofits, and our team is happy to discuss both these organizations and new organizations that might have caught your attention. Many donors find that this deeper connection to the local community—and to professionals who understand it—becomes one of the most rewarding aspects of their giving.

The upshot here is that any donor-advised fund can help you organize and simplify your charitable giving. By moving your fund to the Community Foundation, you also gain a local partner committed to helping you make a lasting difference close to home. If you'd like to explore whether a transfer makes sense for you, the Community Foundation team would be delighted to start the conversation!