The Charity/Charitable Fund Conversation

Amy Jordan |

Clients who are involved in charitable giving should know about supporting an organization through a donor-advised fund at Hudson Community Foundation

If your clients are interested in starting a charity or charitable fund it could be a challenging task. Before getting into the process, encourage them to talk to Hudson Community Foundation (HCF). Our knowledgeable team will be able to assist your client's needs with awareness of organizations, people, and initiatives in the community that are already aligned with your client’s passion. 

Starting a charity requires initial and ongoing work. As your client’s advisor, you can share that starting a charity is like starting a business.  Your client will need to establish a legal entity and articles of incorporation need to be filed with the state. To achieve tax-favored status they will need to obtain a 501(c)(3) designation from the Internal Revenue Service. This allows the organization’s income to be tax exempt and donors’ support to be tax deductible. Ongoing, there will be requirements for public support, expenditure documentation, and tax filings to maintain the organization’s charitable status. 

Instead of going the start-up route, your client can work with HCF. Given that there are nearly 1.8 million nonprofit organizations in the United States, your client can support organizations through a donor-advised fund at HCF.  We can help design a charitable giving plan that achieves your client’s desired level of involvement and recognition.

Learn more about a Donor Advised Fund and what makes HCF different than other institutions: myhcf.org/donoradvisedfunds

As always, contact Hudson Community Foundation to learn more about charitable giving techniques and how trends and legislation may impact your or your clients’ plans. We are happy to help!

With a fund at Hudson Community Foundation (HCF), advisors manage the charitable assets on their preferred platform at any amount. Assets stay under their management. Advisors can provide their clients with the consistent investment advice they expect. We are your partner in charitable giving!

The team at HCF is a resource as you serve your philanthropic clients. We understand the charitable side and are happy to serve as a secondary source as you manage the primary relationship with your clients. This blog is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.