Back to Basics: Exploring Your Charitable Fund Options

Charitable funds offer a way to make giving easier while allowing you to support the causes you cherish—now and into the future. These options are designed to provide flexibility and choice without adding complexity to your giving.

A charitable fund allows you to support one or more IRS‑qualified charities, decide how and when grants are made, and track your giving in one place. Whichever fund option you choose, your generosity can continue supporting the causes you care about for years to come.

A donor‑advised fund (DAF) is a charitable giving vehicle designed to make giving more flexible, helping you support the organizations and causes closest to your heart.

There are three main types of donor-advised funds to choose from.

An advise-as-you-go fund allows you to make grants to the charities and causes that matter most to you while giving you the flexibility to do so when it’s right for you.

Advise-as-you-go funds give you control over how much and where you give. You also have the option to name successor advisors to your charitable fund upon your passing. This fund can be funded with cash, publicly traded securities, real estate, complex or noncash assets (such as privately held stock or LLC interests), or estate or beneficiary gifts (e.g., bequests or life insurance proceeds).

While you can give directly to tax‑qualified charities, an advise-as-you-go fund may enhance your overall giving experience by offering potential tax advantages, helping you give more strategically, and allowing your charitable dollars the opportunity to grow over time—so you can support the communities and causes you cherish, now and in the future.

Open an advise-as-you-go fund if you want to:

• Grant to any IRS-qualified charity at times of your choosing.
• Name successor advisors.
• Open a fund with no set minimum amount.

With a designated fund, you designate the organizations you want to support and your fund distributes annual grants—either in perpetuity or over a defined period—while giving you the flexibility to adapt your giving as your goals or circumstances change.

A designated fund offers even more options to grant. You can choose to grant a percent of your fund’s value, create a scholarship fund, support a specific cause or charitable interest, or request an immediate, one-time grant to selected charities.

With this fund, you choose how your charitable assets are invested. You can designate any IRS-qualified charities to receive automatic annual grants, and you may change your designated charities at any time.

Open a designated fund if you want to:

• Grant a percentage of your fund’s value to distribute annually among designated charities.
• Designate the charities and causes you want to support at fund setup.
• Make a contribution at a later time (via bequest, life insurance, or beneficiary proceeds).
• Make immediate one‑time grants to selected charities.
• Provide 5% annual support among IRS‑recognized charities in perpetuity, or 10% annual support for 10, 15, or 20 years.

A designated nonadvised fund allows you to designate one or more charities to benefit from grant distributions from your charitable fund on an ongoing basis. You can also take advantage of Qualified Charitable Distributions (QCDs) to make a gift from your IRA with a designated nonadvised fund.

With a designated nonadvised fund, you designate the charities and causes you want to support at fund setup. Grant distributions may be set up in perpetuity or for a term of years. Reminder: To take advantage of QCDs, you cannot add or remove selected charities or change the distribution plan.

A designated nonadvised fund allows you to define a specific purpose for your charitable support. For example, you may request grant distributions to benefit a particular program within an organization, such as youth or music programs. For eligible donors, QCDs offer a tax‑efficient way to support these designated charities by directing funds from an IRA to charity. When used with a designated nonadvised fund, QCDs can help you meet charitable goals while supporting a consistent, long‑term giving plan.

Open a designated nonadvised fund if you want to:

• Grant a percentage of your fund’s value to distribute annually among designated charities.
• Designate the charities and causes you want to support at fund setup—with the understanding these selections cannot be changed once the fund is established.
• Make a contribution at a later time (via bequest, life insurance, or beneficiary proceeds).
• Use QCDs to support charities with an IRA distribution.
• Make immediate one‑time grants to selected charities.
• Provide 5% annual support in perpetuity, or 10% annual support for 10, 15, or 20 years.

Charitable fund options can open the door to more thoughtful, intentional giving. Partnering with your Thrivent financial advisor and Thrivent Charitable gives you added tools and expertise to help use your charitable fund wisely and leave a meaningful legacy. Contact our team of charitable experts to explore your options.