Creating a donor-advised fund is profoundly altruistic act. It can be prompted by a couple’s long-held dream, a sibling project, or a group of friends. Philanthropic intent can also prompt companies to mobilize staff beyond their economic contribution. Engagement in a charitable cause requires financial investment but above all, it requires personal investment. To set up a donor-advised fund, the first thing to establish is its mission, which will then guide its nature.
Choosing the type of donor-advised fund.
In France, three types of fund can be created:
- “distribution” funds, requiring a minimum commitment of €200,000;
- “expendable endowment” funds, requiring a minimum commitment of €200,000;
- “permanent endowment” funds, requiring a minimum commitment of €500,000.
Establishing the organization’s operating model
Once the legal status has been chosen, the executive operating model needs to be addressed by appointing members and who define their role and scope of intervention. The financial strategy then needs to be agreed upon, especially fund management, by choosing a banking establishment or a selection of funds at Fondation de France.
Project approval
Each project is submitted to the Fondation de France Board of Directors for their approval, every three months. For more information on how to create a donor-advised fund, please look at the “Create a donor-advised fund in four steps” page as well as our brochure, Devenir fondateur (“Becoming a founder”).
