Donor-advised funds have been around for a long time, but they have been used on a limited basis by donors to the Community Foundation of Jackson County.

That’s changing, however, with recent new funds.

Some folks, including brothers Gary, Pat and Bob Myers, find that a donor-advised fund simplifies their charitable donations, giving them better control of their money and a simplified deduction for their taxes.

The Seymour natives established a donor-advised fund that honors their parents, Francis “Pat” and Dorothy M. Myers, and the family’s dedication to helping the communities that supported the family business, Kocolene Marketing. It’s the second-oldest fund at the foundation, established in 1992.

“Kocolene receives many requests for charitable donations each year from within our local county but also outside since we market to many counties,” Gary said. “The guidelines established by the Community Foundation help us screen the requests and ensures the true worthy causes gain the strongest consideration. The donor-advised program is very flexible in that we can request grants be made from the fund to any qualifying charitable organization, be they local or outside the county.”

Grants from the fund have benefited many organizations over the years, including the Distinguished Young Women of Jackson County, Girls Inc. of Jackson County, Boys and Girls Club of Seymour, the Seymour Police Department DARE program, Jackson County United Way and the Tracy Bullard Memorial Endowment.

More recently, Gary Myers and his wife, Janet, created the Janet L. and Gary F. Myers Charitable Fund, also a donor-advised fund. It has approved recent grants to Peace Lutheran Church, Indiana Sheriff’s Association, Seymour Main Street, the Schneck Foundation and Southern Indiana Center for the Arts.

They also provided a grant this year to the foundation’s COVID-19 Response Fund.

Giving to others was something instilled in the Myers brothers from childhood.

“My brothers and I were always raised by both our father and our mother to share our blessings and help in ways one can to make the community better,” Gary said. “If we want a good quality of life, we cannot sit on the sidelines and hope someone else does all the work. We each need to pitch in and share our individual gifts and talents to make our community a great place to live, work and raise a family. Getting involved in some way is also rewarding personally.”

When compared to a private foundation, a donor-advised fund administered through the Community Foundation of Jackson County offers simplicity.

Consider these facts:

• No legal or accounting fees are needed to establish the fund, although it’s always good to have a legal or financial adviser go over any proposed fund agreement.
• The fund is not required to file an IRS 990-PF as private foundations must do.
• Funds do not pay the 2% excise tax required of private foundations.
• No required distributions. Private foundations must distribute at least 5% of assets each year.
• One gift can support many charities. It all depends upon the fund adviser’s wishes in a particular year.
• Because the foundation is a public charity, donations may be deductible up to 60% of adjusted gross income rather than the limit of 30% for a private foundation.
• Minimal cost and no recurring fees beyond an annual management fee.
• Better timing and control of your charitable giving.

Gifts may be cash, mutual funds, bonds or securities that may avoid capital gains and increase the value of the gift.

Establishing and putting a donor-advised fund to work is simple.

An initial irrevocable gift of at least $5,000 to the Community Foundation can establish an endowed fund. You name the fund and designate an adviser, which can be you or someone else you designate.

This can be a great way to teach philanthropy to your children, involving them in the selection process and reviewing the impact of gifts and earnings.

The fund adviser makes recommendations regarding grants. All recipients must be valid charities, and foundation staff will do the research and confirm this before grant checks are written. This preserves the charitable nature of the fund.

You — and family and friends — may add to the fund at any time. Ideally, the fund will continue to grow with earnings from investments.

The two donor-advised funds created by the Myers families are among 23 overall administered by the foundation. Another is the Everett V. and Maria Moritz Fund, which was established in 1997 to benefit the community.

In recent years, Fred Mortiz has recommended grants to benefit Immanuel Lutheran Church, Seymour’s skatepark, Southern Indiana Center for the Arts, Leadership Jackson County, Community Provisions of Jackson County, the Boys and Girls Club of Seymour and the Community Foundation of Jackson County. For years, the Moritz family owned and operated Union Hardware.

“These organizations are important assets in our community, and helping them and others meet their needs and provide the work they offer is why the fund was created,” Fred Moritz said. “Our family wants to be of help in our community.”

The Moritzes also made grants to support COVID-19 response work this year.

“With COVID-19 disrupting so many lives, we have to do something to help any way that we can,” Moritz said at time of his decision to recommend grants from the fund. “We hope this helps the agencies do their work in these challenging times.”

With the Moritz Fund created as an endowment, the fund will offer grants to the community in perpetuity.

To learn more about establishing a donor-advised fund and how they operate, give me a call at the foundation office, 812-523-4483. And keep in mind that there are other types of funds that might better suit your giving goals, such as community funds, field of interest funds and designated funds.

Dan Davis is president and chief executive officer of the Community Foundation of Jackson County, 107 Community Drive, Seymour, IN 47274. For information about donating opportunities with the foundation, call 812-523-4483 or send an email to [email protected].