Q&A: Frequently Asked Questions about Donor Advised Funds
Who can make grant recommendations?
Only fund advisors who are listed on the original Fund Agreement may make grant recommendations. You can add fund advisors by notifying us in writing.
May I recommend a grant to an individual?
No. As a community foundation, the Princeton Area Community Foundation may only make distributions to qualifying nonprofit organizations.
What are some common types of grants?
General Operating Support – provides for the day-to-day costs of running the nonprofit organization.
Project or Program – supports a specific activity or program.
Endowment – increases the organization’s restricted long-term funds.
Capital – provides support for the purchase of property, the construction of a facility, the remodeling/expansion of a facility, or the purchase of equipment.
Unrestricted – allows the nonprofit to support the organization where most needed.
Seed – helps to jump start a new organization, a new project, or launch a capital campaign.
Challenge or Matching – helps a nonprofit leverage additional dollars through a fundraising campaign.
Can I make an anonymous grant?
Yes. To give anonymously, let us know and we will remove all references to your fund in the information send to the grantee.
May I recommend a grant to an organization for which I volunteer?
Yes, as long as you receive no personal benefit from the grant.
Will I receive a report about how my grant was used?
We generally do not require organizations to submit a final report for grants of less than $25,000. If you would like to receive a report, let us know. We can include that as a requirement of the grant.
May I pay for tickets to a benefit dinner from my donor-advised fund?
No. No portion of event expenses can be paid through your donor-advised fund.
I would like to sponsor a table at an event, but I won’t be attending.
In this case, you may pay the entire amount from your fund as long as you or anyone known to you will not be benefiting from the donation by attending the event and sitting at this table.
How can I learn about organizations addressing a specific issue?
Talk to our expert staff. We can:
Recommend organizations doing excellent work in the community
Provide you with detailed descriptions and evaluations of programs
Give you copies of an organization’s financial records
Research your questions
Arrange site visits to nonprofits to help you learn more and create personal connections