Background

Donors

A Donor Advised Fund can be opened with a minimum gift of $25,000. You can use cash, stock, real estate, cryptocurrency or other digital assets to create a named fund and qualify for an immediate tax deduction.

As the donor, you can be actively engaged in the grant-making process. Fifth Element Fund gives you the right to advise on distributions from your fund to specific charities. We are also available to identify organizations that match your charitable interests. Additional gifts may be made to your DAF at any time.

Reasons to Create a Donor Advised Fund

It’s Easy. The necessary paperwork to establish a new fund is straightforward and can be completed in minutes. Recommending grants from your fund only requires a simple one-page form. We take care of the paperwork for you, so that you can focus your time on more important things.
It’s Flexible. With a minimum of $25,000, you can establish a fund for just about any purpose and make grants to the local, national and global organizations that you see fit.
It’s Personal. As a donor advisor to Fifth Element Fund, you not only may recommend distributions from your fund to specific charities, you may also designate a successor advisor to the fund – an effective way to engage other family members in charitable activity. We’re here to offer individualized service and strategies to help you carry out your goals and suggest ways to increase your impact.
It’s Efficient. We handle the administrative tasks of your fund – from investment administration to grants management – all for a nominal administrative fee. All of our funds share the costs of administration, allowing for economies of scale.

How Donor Advised Fund Administration Works

We pool all our charitable funds for administrative purposes, however each participating fund receives individualized active investment management for maximum investment return and flexibility. You may choose from a variety of existing investment management strategies, or recommend your fund be managed by your own investment advisor, allowing total transparency as you support the charitable causes you care about most.
It is up to you to determine the appropriate level of spending from your DAF account, as there is no mandatory spending requirement. If you are interested in preserving your fund for the long term, you have the option to annually rollover your entire account and the investment growth until such time you are ready to make grants.
Minimum balances for funds that participate in our outside investment management program is $100,000.
What do I need to know before I start?

Starting a private foundation can involve substantial start up costs and administrative expenses, such as the yearly filling of a Form 990-PF. But one of the most important differences is that Donor Advised Funds receive more favorable tax treatment than a private foundation.

Donor Advised Funds allow donors to take a federal income tax deduction up to 50% of adjusted gross income (AGI) for cash contributions and up to 30% of AGI for appreciated securities; versus 30% of AGI for cash contributions and 20% of AGI for appreciated securities for a private foundation.

Donor Advised Funds also offer the ability to recommend grants anonymously, if desired. It is also possible to convert a private foundation over to a donor advised fund to simplify on-going maintenance and record keeping.

How do I start a fund?

A donor enters into an agreement with Fifth Element Fund. Our staff will assist you with the process. If you have additional questions please call Tony Suber at (404) 825-9529.

  1. To create a fund, a donor makes an irrevocable contribution to the Fund, a public charity, and takes a tax deduction in the year they make the contribution.
  2. The donor chooses a name for their Fund (name can include the word “Foundation”).
  3. The donor can then recommend to the Fund a preferred investment option for their account.
  4. The donor can begin recommending grants to charities at anytime. The number of grants issued per year is not limited.

How can I still support the charities I care about?
  • Donate assets that make the most sense from a tax perspective and then support multiple charities from a single contribution to the fund using our Contribution Form.
  • Recommend grants to any IRS-qualified public charity 501(c)3, or to recognized international charitable organizations.
  • Recommend grants online, by fax or by mail using our Grant Request Form.
  • Set up recurring grant recommendations (monthly, quarterly, semi-annually, or annually).
  • The Fund prepares customized correspondence for grants from your account and issues the grants to the recommended charity. Grants can be made in the name of your
    fund, or made anonymously if necessary.

What are acceptable contributions?
  • Cash equivalents (by check or wire) and publicly traded securities (including restricted stock).
  • Certain special assets (including real estate and illiquid assets) are accepted on a case-by-case basis.
  • Cryptocurrency and other digital assets.
  • Privately-held stock in a company.

We All Have a Role

  • Individuals

    A Donor Advised Fund (DAF) works like a charitable bank account. You make an initial contribution to establish a fund, using gifts of cash, and/or appreciated publicly traded securities, and/or closely-held stock. The funds deposited into your individual account are carefully invested by Fifth Element Fund, and the net income is credited to your personalized DAF, similar to a mutual fund.

    As a donor advisor, you can recommend charitable contributions from your DAF to non-profit organizations of your choice throughout the year. Contributing to a DAF allows you to enjoy the tax advantages, while minimizing the detailed administration and regulation of the gifting process.

    * All money and property transferred to Fifth Element Fund shall be an irrevocable gift to the charity. The charity shall hold, manage, invest and reinvest the Fund, shall collect the income and shall pay and disburse the net income and principal therefore exclusively for general charitable uses and purposes, in accordance with the provisions specified in the Articles of Incorporation of the charity. The Articles of Incorporation have been adopted by the Board of Directors of the Charity, and their provisions, as they may be amended from time to time, are  hereby incorporated by reference and conclusively assented to and adopted. The phrase “charitable uses and purposes” shall be defined as all of those activities, uses and purposes described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”).

  • Corporations

    Implement a customized giving environment for your grant seekers in which all donations and gift related data, transactions and entries flow seamlessly from an online point of entry submission to approval and check distribution.

    This fully integrated web-based charitable giving platform supports the administration of your philanthropic giving and management of related transactions and communication.

    * All money and property transferred to Fifth Element Fund shall be an irrevocable gift to the charity. The charity shall hold, manage, invest and reinvest the Fund, shall collect the income and shall pay and disburse the net income and principal therefore exclusively for general charitable uses and purposes, in accordance with the provisions specified in the Articles of Incorporation of the charity. The Articles of Incorporation have been adopted by the Board of Directors of the Charity, and their provisions, as they may be amended from time to time, are hereby incorporated by reference and conclusively assented to and adopted. The phrase “charitable uses and purposes” shall be defined as all of those activities, uses and purposes described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”).

  • Non Profits

    The Fifth Element Fund allows your organization to implement a customized white-labeled accounting environment in which all finance and accounting related data, transactions and entries flow seamlessly from multiple points of entry in their respective operational areas to the finance and accounting component of the foundation system.

    This fully integrated online charitable management platform supports the administration of all major planned giving account types and the management of related transactions and communication.

    * All money and property transferred to Fifth Element Fund shall be an irrevocable gift to the charity. The charity shall hold, manage, invest and reinvest the Fund, shall collect the income and shall pay and disburse the net income and principal therefore exclusively for general charitable uses and purposes, in accordance with the provisions specified in the Articles of Incorporation of the charity. The Articles of Incorporation have been adopted by the Board of Directors of the Charity, and their provisions, as they may be amended from time to time, are hereby incorporated by reference and conclusively assented to and adopted. The phrase “charitable uses and purposes” shall be defined as all of those activities, uses and purposes described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”).

  • Advisors

    Fifth Element Fund (FEF) is a truly independent donor advised fund program that allows pre-approved financial advisors to receive compensation for professionally managing their client’s donor advised fund account.

    Compensation for financial management of your client’s charitable giving accounts are based on pre-arranged fee agreements with Fifth Element Fund. Contributions to a FEF donor advised fund are invested in a variety of investment vehicles, all at the recommendation of the donor, your client.

    Whether you have an experienced philanthropic component to your practice or you want to begin offering services, FEF can help you develop a Philanthropic Services practice to help better serve your clients. Financial Advisors and donors work directly with FEF staff.

    What we provide for financial advisors:

    • A white-labeled third-party partner for charitable asset management and advisement
    • A public charity that does not compete with your core business
    • A complete out-of-the-box Philanthropic Solution Set for your firm’s charitable advisement needs
    • A best-in-class web technology solution for online charitable account access, management, and grant making

     

    The Fifth Element Fund, Inc. (Tax ID# 46-2368538) is an IRS recognized 501(c)(3) tax exempt public charity as described in the Internal Revenue Code Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi).

    *All money and property transferred to Fifth Element Fund shall be an irrevocable gift to the charity. The charity shall hold, manage, invest and reinvest the Fund, shall collect the income and shall pay and disburse the net income and principal therefore exclusively for general charitable uses and purposes, in accordance with the provisions specified in the Articles of Incorporation of the charity. The Articles of Incorporation have been adopted by the Board of Directors of the Charity, and their provisions, as they may be amended from time to time, are hereby incorporated by reference and conclusively assented to and adopted. The phrase “charitable uses and purposes” shall be defined as all of those activities, uses and purposes described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”).