Terms and Conditions
All gifts are subject to the Boston Foundation's Terms and Conditions as may be
amended from time to time at the Foundation's sole discretion.
Fund Permanence
Unless otherwise indicated, grants from a Donor Advised Fund will be made from both
income and principal. Founding donors wishing to create a permanent charitable legacy
may do so by electing to distribute income only, as defined by the
Foundation's Spending Rule. Should the fund be permanent, successor generation
advisors to the Donor Advised Fund may not change the distribution arrangement selected
by the Founding donor. Please contact the Development Office at 617-338-1218 for
more information and options.
Fund Advisor
Upon establishing a Donor Advised Fund, the Primary Donor may choose to name one
or more Fund Advisors authorized to access information regarding the fund and make
grant recommendations. All Fund Advisors will receive quarterly statements by email.
A Primary Donor is automatically a Fund Advisor unless otherwise indicated in writing
by the Primary Donor.
Appointment of Additional and Successor Advisors
Requests to appoint additional advisors, successor advisors, or changes in the advisors
must be communicated to the Foundation in writing. Such requests will be accepted
from the founding donor, or other advisors if the founding donor is not a current
advisor. There is no limit to the generations of successor advisors that can be
named. Should the Fund Advisor be deceased, unwilling, or unable to serve or cannot
be located, and a successor advisor has not been named, the balance of the fund
will be moved to The Permanent Fund for Boston, Greater Boston's endowment.
Donor Advised Funds created by organizations, rather than by individuals, are often
advised by an appointed committee with an identified process for selecting new members.
As with funds created and advised by individuals, successor advisors must be communicated
to the Foundation in writing by the organization and/or the appointed committee.
Grants from Advised Funds
Making grant recommendations
Grants of $250 or more may be recommended to a qualified 501(c)(3) public charity
or operating foundation in the United States. Grant recommendations are processed
within seven business days of receipt, provided that the Foundation has received,
or has in its files, all necessary documentation from the organization. Grants will
be designated for general operating support unless otherwise noted by the Fund Advisor.
Grant recommendations can be submitted online through Advisor Xpress using a secure
ID and password supplied by the Foundation. An unlimited number of grant suggestions
can be made, and Advisor Xpress provides access to a list of previously approved
grants to facilitate grant resubmissions. Alternatively, donors may fax or mail
a Grant Suggestion Form to the Foundation. Donors receive confirmation via email
or mail that grant suggestions have been approved and paid.
International grants
Grants to international organizations with a U.S. 501(c)(3) determination are subject
to the Foundation's standard due diligence procedure. Grants to international organizations
without U.S. 501(c)(3) determination may also be possible after completing an alternate
qualifying process through a third party agency for additional fees. Contact the
Philanthropic and Donor Services Office for more information.
Grant limitations
The Foundation must verify that all organizations recommended for grants are classified
as a public charity under Section 501(c)(3) of the Internal Revenue Code and, if
needed, will request documentation from the organization. Additionally, the Foundation
checks for any information that might raise questions about the organization's commitment
to public accountability, and/or commitment to diversity and equal opportunity,
and contacts the organization if additional information about its mission and purpose
is needed. In the event that a matter of concern should surface, the Foundation
will advise the donor prior to releasing the grant.
U.S. Government regulations do not permit grants for memberships, sponsorships,
tickets, or for the fulfillment of a donor's pledges. Grants may not be made to
individuals and cannot provide a benefit to the donor or Fund Advisor. Any grant
that provides personal benefit risks significant penalties to the donor and the
Foundation. Donor Advised Fund grants may not go to private, non-operating foundations.
Grantmaking account
In order to maintain adequate liquidity for grantmaking, an amount equal to the
Foundation's Spending Rule is transferred out of the
Fund's principal account and into the Fund's cash account on a quarterly basis.
Fund advisors who have chosen Fund Permanence will have annual grantmaking restricted
to the grantmaking account.
Low balance funds
The Foundation periodically reviews funds with balances under the Foundation's $10,000
minimum, and will contact the Fund Advisor to offer assistance, including the option
to make additional contributions to the fund to bring the fund up to the minimum,
or grant out the fund balance and close the fund. Should a non-permanent fund, with
a balance below the Foundation's $10,000 minimum, become inactive for two years,
neither receiving additional contributions nor making any grants, Fund Advisors
will be notified with 90 days warning that the Fund will be terminated and the balance
moved to The Permanent Fund for Boston.
Low activity funds
The Foundation encourages Fund Advisors to retain an active role in their Donor
Advised Fund. In order to carry out its mandate of distributing charitable dollars
to the community, the Foundation periodically reviews the grantmaking activity of
all Donor Advised Funds. Should a fund not make any grants over a five year period,
the Boston Foundation will contact the advisor(s) to discuss intentions for the
fund. At that time, the advisor(s) will be given the following options:
- To recommend the balance of the grantmaking account be granted to one or more 501(c)(3)
public charities of their choice.
- To recommend that the balance of the grantmaking account be transferred to The Permanent
Fund for Boston, to meet the most pressing needs of the Greater Boston region, or
to one of the Foundation's Field of Interest Funds.
- To provide a plan for funding a specific charitable project that requires an accumulation
of resources for more than a five year period.
In the event that the advisor(s) cannot be located or is/are unresponsive, the balance
of the fund's current grantmaking account will be transferred to The Permanent Fund
for Boston.
Fund Expenses
Each fund will be allocated a portion of the Boston Foundation's administrative
and an investment expenses as set forth below.
Administrative Expenses
Administrative expenses are deducted in four quarterly installments based on the
Fund's principal balance on December 31 of the previous year. Expenses are reviewed
annually by the Boston Foundation's Board of Directors, and are subject to change
at the sole discretion of the Boston Foundation. Notice of any changes in expenses
will be given prior to implementation. Contact the Development Office for current
fund expenses.
Administrative expenses for Donor Advised Funds cover grant and fund administration,
such as due diligence procedures, the receipt and acknowledgement of contributions,
processing and payment of grants, and compliance with federal and state reporting
requirements. Expenses also support online fund access through Advisor Xpress and
most of the Foundation's extensive donor services designed to enhance advisors'
giving and philanthropic experience.
Investment Expenses
The Boston Foundation has negotiated competitive fees from investment managers not
typically available to individual investors. Funds are responsible for an allocable
portion of these fees as investment expenses. Such expenses are charged directly
to the earnings, with net earnings credited to the fund. Investment fees are subject
to change in the sole discretion of the Boston Foundation and its investment managers.
For current investment expenses, contact the Development Office.
Additional Expenses
Pass-through fee
Funds that grant out the entire fund balance within 12 months of being established
may incur an additional 1% charge.
Complex gift fee
Gift assets that require special review, such as real estate, limited partnership
interests, or closely-held stock may incur additional fees to cover tax, legal or
other Foundation expenses associated with the transaction. Contact the Boston Foundation's
Development Office for more information.
Tax Status
All funds at the Boston Foundation are component funds and assets of the Boston
Foundation, Inc., and, as such, any contribution to a component fund is automatically
treated as a gift to a 501(c)(3) public charity.
Tax Implications
As a public charity under Sections 501(c)(3) and 170(b)(1)(a) of the Internal Revenue
Code, initial and subsequent contributions made to the Boston Foundation currently
receive the maximum charitable deduction permitted under state and federal law.
Each gift to the Boston Foundation is acknowledged with a receipt confirming the
date of the gift for the donor's tax records.
Note: The Boston Foundation is not a licensed tax advisor. Donors should work with
their financial, tax or legal professional to determine the best charitable giving
strategy for their needs.
Spending Rule
The Boston Foundation uses a Spending Rule policy to determine the amount available
for annual grantmaking from the Permanent Fund for Boston, Field of Interest Funds
and Designated Funds. Donor Advised Funds are not required to adhere to the Spending
Rule. Call the Development Office for the current rate and information on how the
Spending Rule is calculated.
Control of Assets/Material Restrictions
In order for a contribution to be treated as a charitable gift, the IRS requires
that the Boston Foundation retain ultimate control over investments, administration,
and granting activity. Additionally, the IRS requires all such funds be free of
material restrictions imposed by donors in a manner consistent with the requirements
of Section 1.507-2 of the Treasury Regulations.
Variance Power
All contributions to the Boston Foundation are subject to the Boston Foundation's
variance power, as stated in the Article 4.7 of the Articles of Organization, which
gives the Board of the Boston Foundation the right to redirect the use of any fund
in the event that, over time, the distributions from an endowed fund have become
unnecessary or incapable of fulfillment due to the changing needs of the community.
For example, a fund set up early in the 20th century for research and treatment
of polio, no longer considered a threat to public health, might be redirected to
a more pressing current medical need in the community.
Transfers
Neither party to a fund may transfer or assign a fund or its obligations to a third
party without the prior written consent of the other party. The advised function
of any fund cannot be assigned without the approval of the Boston Foundation.
Disputes
The fund agreements between donors and the Boston Foundation are governed by the
laws of the Commonwealth of Massachusetts without regard to its conflicts of law
principles. Venue for any disputes arising out of or in connection with a fund shall
be sited in the federal or state courts of Massachusetts.
Conflict of Terms
In the event of an inconsistency between the Terms and Conditions in these Guidelines
and any terms and conditions appearing elsewhere in connection with any component
fund, these terms and conditions as interpreted by the Foundation shall govern,
and the Foundation reserves the right to take any actions at any time which, in
its discretion, it deems reasonably necessary or desirable for the proper administration
of any component fund.