Opening a Fund
When you have a client who is interested in starting a fund and you recommend the Greater New Orleans Foundation, here’s how you can help them get started.
When: Does your client want to give an outright gift to benefit the community now or does your client want to establish a planned gift that will provide an income for family members now and a charity in the future?
Remember: Tax deductions are earned at the time of the gift, while grantmaking continues well into the future.
What: Almost any kind of asset, including cash, publicly traded securities, mutual fund shares, real estate, closely held stock, limited liability companies, and partnership interests, can be used to start a fund. Choosing an asset may depend on the tax advantages associated with your client. Sometimes the asset will be sold immediately to create a fund while other times it may be more advantageous for your client to create a trust or annuity from which they receive income before the remainder is used to start a fund.
There are multiple types of charitable funds to choose from that reflect different charitable goals and interests.
Who: Most funds are named for the donor or the donor’s family, or as a memorial or tribute to someone special. Every grant made from the fund will bear the name of the fund once it is established. If your client prefers anonymity, we can provide that as well.
We hope you will take a moment to read some of the donor profiles to learn more how individuals, families and corporations have partnered with the Foundation to fulfill their charitable goals.
How: It generally takes less than a day to establish a fund. It begins with an Instrument of Transfer Fund form. Our staff stands ready to work with you and your client to outline options and discuss the advantages of each; to answer questions regarding fund advisors and successors; and, to answer any questions at all regarding the governing document.
To learn more about how a partnership with the Greater New Orleans Foundation can meet your clients’ needs, please contact Alice B. Parkerson, vice president of development, at (504) 598-1291.
