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Philanthropic Funds
InterAct for Change Philanthropic Funds are excellent tools for achieving philanthropic goals. The philanthropic funds offered by InterAct for Change provide tax-advantaged vehicles for charitable giving, grantmaking, and program and endowment management.
Philanthropic Funds at InterAct for Change
- Partner-Advised Funds. InterAct for Change is committed to being a partner with our donors. Partner-Advised Funds (also known as Donor-Advised Funds) are very popular because of their convenience and flexibility. With a minimum contribution of $25,000, any family or individual can establish a Partner-Advised Fund, determine the name of the fund, and make recommendations on charitable grants from the fund. The donor receives a tax deduction in the year of the gift and can add to the fund at any time. Click here for more details.
- Restricted Funds. Restricted funds are established to promote and provide support for a particular program, purpose, or area of interest. Donations to restricted funds at InterAct for Change are tax deductible. Typically, multiple donors contribute to a restricted fund and an advisory group makes recommendations about how the funds are used. InterAct for Change is the home for restricted funds for a variety of nonprofit organizations, Giving Collaboratives, and various causes, including:
- SVP
- Project (Help Other People Endure) H.O.P.E. – to feed and clothe AIDS orphans in
- Scholarships – scholarships for men and women studying nursing and other subjects.
Click here for details on restricted funds.
- SVP
- Endowment Funds. InterAct for Change offers strategic, financial, investment, and administrative services to nonprofit organizations that are interested in a third-party home for their endowment fund. Many times, nonprofit boards of directors do not have the expertise to manage an endowment fund. The professionals at InterAct for Change work with boards of directors to identify the organization s goals for the endowment fund, and determine policies and strategies to accomplish those goals. Endowment funds transferred to InterAct for Change become legal assets controlled by InterAct for Change for the benefit of a specific charitable organization. Click here for details.
How InterAct for Change Philanthropic Funds Work
When a philanthropic fund is established at InterAct for Change, our professionals deliver expert advisory and administrative services regarding all aspects of the fund’s management:
- Conducting due diligence on organizations you want to contribute to through your fund
- Issuing grant letters and checks
- Maintaining records and generating reports
- Investing the funds according to guidelines previously established
Philanthropic partners enjoy administrative convenience, cost savings, and potential tax advantages. The result is that partners and clients can feel assured knowing their contributions are well-managed and their charitable giving recommendations are effectively administered by caring, experienced professionals.
Investment Options
When a Philanthropic Fund is established, the partner or an advisory group, if one exists, may recommend how the fund is invested within the guidelines established by InterAct for Change. Assets are not pooled with others, but instead, are held in separate accounts. InterAct for Change monitors investments against appropriate benchmarks and reports activity quarterly.
Current investment options include:
- Money-market funds (suggested for partners who plan to recommend frequent grants).
- A diverse variety of high-quality mutual funds.
If the Philanthropic Fund exceeds $500,000, the partner or advisory group has the option of recommending a preferred investment partner (i.e., a wealth manager, consultant, or investment advisor) to individually manage the investment portfolio, using the investment guidelines established by InterAct for Change.
Please contact us at info@interactforchange.org for more information on Philanthropic Funds or if you are interested in becoming a preferred investment partner.