Donor-Advised Funds and Named Endowment Opportunities at the Ray of Hope Cancer Foundation

What is a Named Endowment Fund?

Donors may choose to set-up an endowment fund, which will exist in perpetuity, meaning the principle is not drawn on, and instead, Ray of Hope Cancer Foundation uses the interest of the fund to award grants to Colorado cancer patients in need. There is a minimum amount to start an endowment fund. The endowment fund will “live” in the Ray of Hope Endowment where the interest of the fund will be compounded with other ROHCF assets thereby creating more return on your investment. An endowment fund allows donors to make a charitable contribution, receive an immediate tax benefit and ensures the donor’s intent through a donor agreement. Named, endowment funds act like a family foundation without the headache and administrative burden of starting a nonprofit 501c(3). An endowment fund will exist over multiple generations.

What is a Donor-Advised Fund?

A donor-advised fund (DAF) allows donors to make a charitable contribution, receive an immediate tax benefit and then advise on the distribution of grants from the fund over time. The law does not allow the donor to direct the organization to use the funds in a way that will benefit him/her or a specific individual. Donors may choose to spend down the entire fund. Most donor-advised funds term once the funds are depleted, and/or when there is inactivity on the account for two years or more. DAFs also act like a family foundation without the headache and administrative burden of starting a nonprofit 501c(3). DAFs will not exist in perpetuity. There is a minimum amount to start a DAF.

Who will Make Grant Decisions about Colorado Cancer Patients in Need?

The Ray of Hope Cancer Foundation’s Grants Committee, which is made up of oncological professionals and social workers, awards grants to patients based on objective criteria. Donors may indicate their intent to support children with cancer, ovarian cancer, or patients on the Western Slope. The Ray of Hope Cancer Foundation will honor the donor’s intent to the full extent possible.

What if I am uninterested or unwilling to commit to a donor-advised or an endowment fund, do I have another option?

You may opt to contribute to the Ray of Hope Cancer Foundation Endowment. By doing so, you are contributing to an Endowment that exists in perpetuity and only the interest generated will be spent. These funds will directly support Colorado cancer patients in financial need. Donors may also choose to contribute to the organization’s annual operating budget. There is no minimum required contribution for either option.

Is there a minimum amount to start a Donor-Advised and/or Endowment Fund?

The minimum contribution is $25,000, which can be pledged over 5 years.

Are Donor-Advised Funds and/or Endowment Donations Tax Deductible?

Yes, donations are 100% tax deductible but it is important that you consult with your accountant or tax advisor regarding any tax deductions.