Flexible International Charity Giving with a Donor Advised Fund
People worldwide are faced with massive, urgent issues—food insecurity, displacement, infectious disease—endangering people, communities and entire countries. Overcoming these situations requires the generosity of humans. And humans are eager to rise to the challenge. Suffering triggers generosity in humans. Not only does it make people feel good to be altruistic, but scientific research has also found that humans are hardwired for charity.
Despite the difficulties of making charitable contributions outside one’s own country, which can be fraught with regulations and restrictions, donors remain interested in helping causes worldwide. Donor-advised funds (DAF) are a charitable vehicle that can help eliminate some of the barriers associated with global giving.
While several DAFs have mechanisms to administer international contributions, the process is further streamlined with the TrustBridge Global model, performing the due diligence to determine that international contributions are in compliance with a county’s rules and regulations and meet with donor fund guidelines and local charity statutes.
How it works
A TrustBridge Global DAF provides givers with a centralized charitable account, allowing contributors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time. This method enables the DAF to act as a charitable savings account. Donations to a contributor’s funds can be made via cash, cash equivalents, securities, or various other assets, enabling the selected charity to accumulate funds before drawing them down to their bank account. Unlike other DAFs, TrustBridge is recognized as a sponsoring organization of DAFs and a public charity. In Switzerland, it’s structured as a charitable organization at the cantonal and federal levels.
Who can participate, what does it cost and how do the costs compare to other DAFs?
Anyone—individuals, families, companies, charities, foundations—are eligible to participate. Traditionally, DAF granting was limited to high-wealth individuals, but there is no minimum charge to open a TrustBridge DAF, making it accessible to anyone.
As a charity that sponsors a DAF program, TrustBridge does not charge fees. Instead, it shares the cost of operating the foundation among the DAFs equitably by assessing them based upon their proportionate balance or activity. These assessments are made against amounts already held within the foundation, not paid separately as a fee might be.
The cost savings with TrustBridge are significant, with other DAFs charging five to eight percent versus one percent charged for gift amounts regardless of the size with a minimum assessment of $300. Grant fees for the TrustBridge are also substantially less than other DAFs. For example, a grant fee assessed at $5,000 with TrustBridge would be $18,000 to $35,250 for other DAFs.
Where can global contributions be made?
Grants can be made to organizations in the US, Canada, UK, South Africa, Australia and more. TrustBridge Global works with charities and foundations worldwide and is consistently working to extend its reach.
Why international giving matters
Because TrustBridge Global is part of a global network of DAF providers, it can ensure that funds are appropriated where they are needed most. The structure allows for an efficient process that maximizes contributions and minimizes the difficulties associated with international giving. Improving the procedure translates into increased giving, which benefits those in need and elevates global citizenship for all.
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