Often referred to as a charitable checking account, a donor-advised fund provides you with the giving flexibility you need to provide support to the charities and causes closest to your heart. You may receive charitable tax deductions as you make gifts to your charitable fund and then request grants to IRS qualified charities at times of your choosing.
Setting up your fund
When we create your fund, we do so based off your giving intentions and recommendations provided in the fund setup form and through discussion with our staff. Please confirm the details before making gifts or transferring assets to your charitable fund.
Role of fund advisor and succession
You may authorize interested parties, such as family members, friends or professional advisors (e.g., financial advisor, CPA, attorney), with access to information regarding your charitable fund. This authorization may be made when you complete the fund workbook or after your charitable fund is established. As donor/fund advisor, you may change authorized individuals at any time. Individuals authorized to discuss your giving with our staff are not able to request grant distributions or have online access to charitable fund information. Financial advisor(s) identified in the fund workbook are provided with read-only online access to your charitable fund activity (i.e., contact information, gifts and grants). If you wish to restrict online access to your financial advisor and/or others, please
Fund and grant disclosure options
You may provide us with permission to publish your charitable fund’s name in our publications (e.g., annual report, newsletters, social media, website) by checking the designated box under Additional Instructions in the fund workbook. If no box is checked, we will assume you wish to remain anonymous to the public at all times. You also have the option to have your charitable fund’s name shared with charities when grant distributions are sent. If no box is checked in this section of the fund workbook, your charitable fund’s name will not be shared with benefiting charities. You may change your disclosure preferences at any time. To do so, please
Tax, legal and financial advice
Charitable giving can result in significant tax, legal and financial benefits and consequences. Because we cannot provide legal or tax advice, you are strongly encouraged to consult your personal attorney and tax advisor before making any gifts.
You may establish your charitable fund with any of the following: check, wire transfer, ACH bank transfer, credit card, stock/bonds and mutual funds, qualified charitable distributions (QCDs) from an IRA, real estate, other real assets and/or closely-held stock. (The minimum for gifts of real estate or closely-held stock is $200,000). You may also establish your charitable fund with gift assets that occur upon death, such as gifts made through your will or living trust, life insurance and/or beneficiary proceeds.
You’re welcome to make additional gifts to your charitable fund at any time. Please
Charitable gifts cannot be revoked once the transfer of gift assets is complete. With gifts made upon death, such as bequests and beneficiary proceeds, you retain control of these future gifts while living.
Creating a charitable fund with gifts of qualified IRA distributions
If you are 70½ or older, you may create a non-advised charitable fund with gifts of qualified charitable distributions from your IRA. When making this type of gift, you recommend one or more IRS-qualified charities to receive automatic annual grants from your charitable fund, either in perpetuity or for a term of years. Due to IRS regulations, you do not have advisory capacity over this type of charitable fund once it is established.
Gifts made to your charitable fund may be eligible for a charitable tax deduction available under IRS regulations. Each charitable tax deduction is based on the type of gift asset and when the asset is given (e.g., direct gifts made while living versus gifts made upon death).
Please note that for gifts of cash, donors may deduct up to 60% of their adjusted gross income (AGI) and any portion of their deduction that exceeds this threshold may be carried forward for five additional tax years. For gifts of long-term appreciated assets (assets owned for more than one year), such as stock, donors may deduct up to 30% of their adjusted gross income (AGI) and any portion of their deduction that exceeds this threshold may be carried forward for five additional tax years. The information above pertains only to federal taxes, not taxes at the state level, which vary. In all cases, please consult with your tax advisor for charitable tax deduction information specific to your giving situation.
Gift acceptance & tax receipts
In accordance with procedures adopted by our Board of Directors, a duly-authorized officer or other designated staff person accepts your gift on behalf of Thrivent Charitable Impact & Investing. Once your gift is accepted, a tax receipt is sent to you. In cases where multiple gifts are made in one year, a final comprehensive tax receipt is sent following year-end.
Policy for selling capital assets
Gifts of capital assets, such as securities, real estate and other real assets are sold by Thrivent Charitable Impact & Investing as soon as it is feasible. Proceeds from the sale of these assets are directed to your charitable fund and invested according to our investment policy.
We cannot accept checks from individual supporters in response to fundraising events promoting charitable funds (e.g., golf tournaments, banquets, silent auctions). The exception is when we have agreed to sponsor and run an event, and all conditions outlined have been met. Gifts received at a fundraising event for a specific charitable fund should be made payable to the individual organizing the event, and are not eligible for a potential charitable tax deduction.
Grant distributions from your charitable fund are sent directly to benefiting charities. We cannot provide grant distribution checks to the donor/fund advisor for personal delivery. You may designate grants for general operating support or specific projects. Grants provide general operating support unless otherwise noted by the donor/fund advisor.
Grant distribution policies
A charitable fund allows you to support charities in the following ways:
Advise as you go – any charity, any time (Option A in the fund workbook)
Recommend grants of $100 or more to your favorite IRS-qualified charities at times of your choosing.
Automatic annual grant support (Options B, C and D of the Fund Workbook)
Designate IRS-qualified charities, a scholarship or a field of interest to receive automatic annual grants in the following two ways:
- Perpetual grant support. Through the perpetual grants option, 5% of your charitable fund’s value is distributed proportionately among recommended charities on an annual basis. This distribution rate is subject to change.
- Term of years grant support. Through the term of years grant option, 10% of the charitable fund’s value is distributed annually among recommended charities for 10, 15 or 20 years based on your request. Following the term of years, any remaining assets in your charitable fund are distributed proportionately among your recommended charities.
- One-time grant to specific charities. A portion of your initial gift may be granted to one or more recommended charities. This option is available whether your initial gift is made upon death or while living. A minimum of $50,000 or 20% of the gift, whichever is greater, must remain in your charitable fund.
- When a charity no longer exists. If a recommended charity no longer exists, annual distributions will be made proportionately among remaining charities. If all charities cease to exist and no other charitable recommendations are in place, remaining charitable fund assets will be directed to the Thrivent Charitable Impact & Investing Community Fund. In the case of charitable funds with term of years grant distributions, remaining charitable fund assets are distributed among named charities at the end of the term. If all charities cease to exist, remaining assets are distributed to the Thrivent Charitable Impact & Investing Community Fund.
We strive to ensure that grants from your charitable fund achieve your giving intentions, and verifies the charitable status of all nonprofits receiving grants. Each grantee’s financial and program information is reviewed. While the vast majority of grants recommended by donors are honored, the following types of grant requests are not permissible:
- Grants that provide a more than incidental benefit to the donor or other third party. This includes: all or a portion of the cost to attend a charitable event, goods bought at charitable auctions, raffle tickets, grants to satisfy a financial obligation to any individual or entity, grants that fulfill fundraising pledges or other commitments, or that are directed to or for the benefit of specific individuals (e.g., school tuition, scholarships earmarked for individuals);
- Grants to organizations whose purpose or work is not solely charitable or when the grant will be used for a non-charitable purpose (e.g., cemeteries, VFW, fraternal societies);
- Grants to private non-operating foundations; and
- Grants to supporting organizations (501(c)(3)s identified in 509(a)(3)) that do not have an IRS determination letter stating they are “Type I” or “Type II”.
We are governed by federal laws and regulations that require it retain “variance power.” This means that in accepting donor gifts, we must have the ability to redirect charitable support under certain circumstances, including if a charity loses its nonprofit status, support to a charity becomes unnecessary, the charity becomes incapable of fulfilling its mission, or is otherwise inconsistent with the charitable purposes of Thrivent.
There is no fee charged to establish your charitable fund. Once gift assets are received to your charitable fund, an annual fee equal to 1% is assessed to charitable fund assets on a quarterly basis to cover program and administrative expenses. This fee is based on the fund’s average daily balance for the quarter. Charitable fund assets in excess of $1,000,000 are assessed a reduced fee of .5%, and additional reductions occur with assets exceeding $5,000,000. Fees are assessed on a per fund basis and are subject to change. If you established a charitable fund where grants are advised at times of your choosing (i.e., “advise as you go”), a minimum $25 quarterly administrative fee is assessed when the charitable fund value drops below $10,000. There may be additional fees for gifts of illiquid assets (e.g., real estate, closely-held stock, life insurance).
We also offer an advisor managed fund program for donors who elect to work with a financial advisor for investment advisory and management services. The minimum gift for the program is $250,000 and the annual administrative fee is 1% of the assets or $2,500, whichever is greater. Investment advisory fees assessed by a financial advisor, plus custody and investment management and management fees embedded within mutual funds, comingled funds, etc., will not exceed 2% of a charitable fund’s value. In all cases, gift and charitable fund minimums must be met.
We invest gift assets in a diversified portfolio of no-load, institutional class investments. Investment advisory fees are netted out of overall investment returns. If you establish an advisor managed fund, please note the separate fee schedule described above.
All investments are reviewed for approval by our Board of Directors. Assets of your charitable fund may be commingled with the assets of other charitable funds that we hold and administer.
Investing your fund's assets
As a donor/fund advisor, you may recommend how your charitable fund assets are invested. Once gift assets are invested, changes in market value may cause the value of the underlying investments of your charitable fund to be worth more or less than the value of the original gift. All dividends and capital gains are reinvested. For charitable funds where you “advise as you go”, you have the option of investing gift assets in any of our investment portfolios. You may also choose to customize your charitable fund’s investment allocation among all portfolios. For charitable funds where you designate charities for automatic annual grants, you may choose to invest assets in any growth-oriented investment portfolio.
After your charitable fund is established, you may recommend changes to your investment selection or allocation by submitting your request in writing or
Whenever possible, we follow donors’ investment preferences but as per IRS regulations, investment recommendations are advisory and we may follow or decline donors’ recommendations. Investments are administered in accordance with our financial policies and are subject to normal market and interest rate fluctuation risks. Any gain or loss generated by the above investments will be reflected accordingly in the fund’s value.
At least annually, we provide statements to donors with charitable funds that are making grants. These reports detail grants to charities, administrative fees and investment gains or losses. Statements for charitable funds are also available online through your
- Identify charities/nonprofit organizations that match your interests and values.
- Research causes or issues important to you.
- Link your giving with our initiatives, joining other donors to provide support to specific charitable concerns.
- Assist you in making additional gifts to your charitable fund.
Charity Navigator: Your Guide to Intelligent Giving (
Donors must itemize deductions to receive a charitable income tax deduction. Charitable giving can result in tax, legal and financial consequences. Thrivent Charitable Impact & Investing® does not provide legal, accounting or tax advice. Consult your attorney or tax professional.