Donor Advised Fund (DAF)–Matching Grants

INTRODUCTION
The following information is provided to the Clubs, Committees and Official Entities recognized as such within District 5840.  This information is intended to provide an explanation of the purpose of the funds. Additionally these instructions inform organizations about the following critical aspects:
 
  • History of the Donor Advised Fund
  • Process for submitting the required application for use of Donor Advised Funds
  • The cycles in which grant applications are to be submitted for consideration
  • When the grant applications will be acted upon by the Grant Committee
 
GEOGRAPHIC AREA AFFECTED
The document which established the Donor Advised Fund explains that the:
 
“...geographic area for the advisory committee’s grant recommendations shall be to qualified charitable organizations which serve the counties in Texas comprising Rotary District 5840 as exists in 2002, being 44 counties, or other areas outside of District 5840 that may include Mexico as deemed appropriate by the advice and consent of the District Governor or his advisory committee.”
 
HISTORY & PURPOSE
The 2001 Rotary International Convention was held in San Antonio, Texas. The 2001 Rotary International Convention Host Organizing Committee (HOC) planned, organized and hosted the International Convention.  The 2001 Host Organizing Committee was chaired by Jim Berg. PDG Duncan Wimpress was the Vice Chairman.
 
After the International Convention there was $320,000 remaining in the account of the Host Organizing Committee. The 2001 Rotary International Convention Host Organizing Committee (HOC) determined it would offer an irrevocable gift of the remaining funds to District 5840 to establish a fund, the proceeds of which would benefit the District in the future.
 
Jim Berg, Chair of the HOC, and District Governor Dick Baggett worked with the Rotary Foundation to establish Rotary Foundation’s first-ever District Donor Advised Fund account. Governor Baggett and HOC Chair Jim Berg announced the formation of the DAF account at the 2001-2002 District Conference in Kerrville, Texas.
 

PROCEDURE FOR REQUESTING DAF FUNDS

The following are procedural steps that must be followed by Sponsoring Organizations wishing to receive available DAF Grants.
 
  • The tax laws that govern Donor Advised Funds and grant distributions require funds to be paid to and distributed by ONLY a legitimate 501(c)(3) entity. Therefore a club, district committee or official entity must have a 501(c)(3) organization to handle to funds for them if they have not become a 501(c)(3) entity themselves.
  • The Sponsoring Organization must match from their own funds the amount of the DAF Advisory Committee allocation being requested. (Example: If a Sponsoring Entity has requested $1,500 of DAF money, it must also be contributing at least $1,500 of its own funds to the project.)
  • The maximum DAF Grant allocation to be provided to a Sponsoring Entity per year will be $5,000.
  • A Sponsoring Organization can receive only one DAF Grant allocation per Rotary Year.
  • A majority of the members (3 of 5) of the Donor Advised Fund Advisory Committee must approve a DAF Grant Application request. Their decision will be binding.
  • PDG Dick Baggett, Chairperson, will review all grant applications to ensure they are completed prior to submission to the full Donor Advised Fund Advisory Committee for consideration and action.
  • The business of the Donor Advised Fund Advisory Committee may be conducted by members being either physically present in one location or by Teleconference, email or a combination of these.
  • A member of the Donor Advised Fund Advisory Committee may also submit in writing, prior to a meeting, their determination on any business that is to come before the Committee at its next meeting. This written document will become a part of the minutes of the meeting in which an application for funds was considered.
  • These rules and the official DAF Grant Application form will be available from the Chairperson of the Donor Advised Fund Advisory Committee or from the District 5840 web page (download capacity).
 
Dick Baggett, PDG
Chairperson
Donor Advised Fund Advisory Committee
5528 Fairway Drive
San Angelo, TX  76904
Cell: (325)277-4310
Email: rgbaggett@gmail.com