Donor FAQ

(Also available in PDF)

What is a Donor-Advised Fund?

A donor-advised fund is essentially a family foundation without the administrative hassle and expense of creating a private foundation. Your fund, as part of a larger donor-advised fund group, bears your family name or other means of personal identification. You recommend the charitable grants to be made from your fund.

What is the Global Gift Fund®?

Global Gift Fund is the donor-advised service offered by the MDRT Foundation. The Global Gift Fund:

• Assists donors in fulfilling their personal charitable goals.
• Promotes greater philanthropy worldwide.
• Supports, with the services of a professional , charitable fund creation and wise grant making, now and in the future.

What is the MDRT Foundation?

The MDRT Foundation was established in 1959 by members of the Million Dollar Round Table (MDRT), the Premier Association of Financial Professionals®. At that time, past presidents of the MDRT began to channel honorariums for their services to the newly formed foundation “to address the larger needs of the community.” Since then, the MDRT Foundation has distributed more than $20 million to fund medical research, social services agencies, education, and advocacy programs and other life-changing charitable caused supported by MDRT members worldwide.

Who can establish a Global Gift Fund?

Any individual, corporation, LLC, or private foundation can create a charitable fund through Global Gift Fund. The minimum contribution to establish a fund is $25,000, excluding those funded with planned gifts. Donors work with a DonorAdvisor who is trained to assist them with their charitable giving.

Who is a DonorAdvisor™?

The term DonorAdvisor defines those professional advisors who are committed to providing philanthropic services to their clients through Global Gift Fund. A DonorAdvisor receives training and annual education in the field of charitable planning. Your personal DonorAdvisor is your main contact at Global Gift Fund.

How do I establish a Global Gift Fund?

Establishing a Global Gift Fund is easy. Your DonorAdvisor will assist you with the process. There is a short application which you complete and your DonorAdvisor will then submit your application, along with your initial charitable contribution, to Global Gift Fund. You will be notified of the acceptance of your fund and be given information concerning the actual operation of your own Global Gift Fund.

Why not give the funds directly to a charity?

A donor-advised fund allows for an immediate tax deduction without having to immediately decide how to distribute to charities that you support.  A donor-advised fund also allows for future generations of family to play a roles in determining the charitable grant distributions.  Additionally, some donors prefer the anonymity that a donor-advised fund may offer.  All correspondence to the charity is handled through Global Gift Fund’s administrative offices, which can allow for anonymity if the donor so desires.

How is my Global Gift Fund managed?

Your funds, under the direction of your Registered DonorAdvisor, are administered by the MDRT Foundation through Global Gift Fund Advisor Services. Your quarterly fund reports are prepared by Global Gift Fund Advisor Services and they process all of your grant requests in a timely manner. The MDRT Foundation reviews all grant requests to make certain that the funds are distributed to qualified charities in keeping with the purpose for which you established the fund. The minimum grant is $250.

How are my Global Gift Fund assets invested?

Assets in the fund you establish will be invested in appropriate mutual funds, managed by your Donor Advisor, under investment guidelines established by the MDRT Foundation.  For accounts up to $100,000, Global Gift Fund has pre-approved funds available in American Funds and Van Kampen Investments; other investment options are permitted for larger funds pending approval by the Gift Acceptance Committee of the MDRT Foundation.  It is important that the assets in the Global Gift Fund you establish be invested in a manner consistent with the long range plans for distribution from your fund.

What are the investment guidelines of the Foundation?

How should I make gifts to my Global Gift Fund?

Your Global Gift Fund can be established with a variety of assets:

Simple acceptance process:

• Cash
• Publicly traded securities
• Life Insurance
• Planned Gifts

 Subject to approval:

• Real estate
• Lettered and closely held stock
• Limited partnership interests
• Personal property

When can donors make grant recommendations?

At any time, using the grant application form provided.

How many grants can be made each year?

There is no set limit, however the number of recommended distributions is based on the fair market value of the account as of the first day of the year based on the following schedule:

Account Value                Grant Distributions

Below $25,000                  5 grants annually

$25,000 to $49,999           10 grants annually

$50,000 to $99,999           15 grants annually

Over $100,000                  20 grants annually

What is the minimum amount for additional contributions to a fund?

After establishing your fund with at least the minimum contribution of $25,000, additional contributions may be made at any time. The minimum additional contribution is $1,000.  A contribution form must be completed and along with your contribution is sent to your Global Gift Fund.

What types of grants are made?

Grants are made only to qualified 501(c)(3) organizations, or state or local government institutions that are qualified to receive charitable contributions (e.g., public libraries, public schools, and state colleges) within the United States.

Grants cannot be used to fulfill a pledge, support political causes or be made to an individual or a private foundation.

The donor, or anyone related to the donor, cannot receive any benefit from the recommended charitable contribution (i.e., the grant cannot pay for membership fees, dues, tuition, benefit tickets, concerts, goods bought at auction, etc.)

How do I create my Family Foundation in Global Gift Fund?

Working with your DonorAdvisor, you should do the following:

• Discuss your charitable interests.
• Review options for establishing a fund.
• Review the Global Gift Fund fee schedule.
• Select a name and purpose for your fund.
• Complete the Global Gift Fund Application.

What are the benefits of a Global Gift Fund?

The benefits of establishing a Global Gift Fund are:

• It is easy to create.
• Donors receive current federal income tax deduction up to the amount allowable by law in the year the gift is made.
• It is customized to the donor’s charitable interests.
• Funds are managed by professionals.

Global Gift Fund Contact Information:  

c/o MDRT Foundation

325 W. Touhy Avenue

Park Ridge, IL  60068

(877) 685-4644

www.globalgiftfund.org

Global Gift Fund® is a registered trademark of the MDRT Foundation.

DonorAdvisor ™ & GiftAdvisor ™ are trademarks of the MDRT Foundation.