How it Works

As a Community Foundation, Stablish Foundation is a registered 501(c)3 public charity that administers Donor Advisor Funds and Charitable Remainder Trusts. A donation to a Stablish Foundation Donor Advisor Fund is 100% deductible in the year the donation is made.

Gifts to designated charities do not have to be made during the same tax year as the donation. They can even be delayed, if desired, until the Donor's death; then, distributed annually over a specified time frame. The named charities can also be changed at any time by the Donor Advisor.

The Donor may specify a preferred financial advisor. Stablish Foundation works with your preferred advisor on a fee-based arrangement.

The account is segregated and managed independently from other accounts with advice from the designated financial advisor.

An Investment Policy Statement is established between the Donor Advisors, Stablish Foundation, and the Financial Advisor for the account, with annual meetings to review the portfolio.

Quarterly and annual reports are provided to all clients.

Clients pay Stablish Foundation an administrative fee based on a tiered fee system.

Stablish Foundation is fully and independently audited each year by a CPA firm and is as transparent to its clients as possible.

Types of Funds

Donor Advisor Funds

In Donor Advisor Funds (DAFs), the donor receives the full tax deduction at the time the donation is made. Stablish is the owner of the funds and works with the selected donor advisors to select investments and charities to send the monies to.

Donor Advisor Fund: A charitable giving vehicle administered by a public charity 501(c)3 and created for the purpose of managing charitable donations on behalf of an organization, family, or an individual. They offer low cost and administrative convenience in legacy charitable giving. Donor Advisor Funds are only allowed to donate to charities with the IRS certified 501(c)3 status. Personal or Private Foundations can donate to any place they choose, but the initial donation may not receive the fullest tax deduction. Donations made to a 501(c)3 charity are fully tax deductible on a personal income tax return and the capital gains taxes on the sale of donated highly appreciated assets can be avoided, which is a double tax advantage. It also allows the Donor Advisor to receive the full tax benefit during the current year and forgoes the decision on how to direct the funds until a later date.

Donor Advisor: Directs Stablish Foundation on what charities to donate to and how the funds are to be allocated at the charity. Donor Advisors have input into investment decisions, but Stablish Foundation reserves the right to make the final decision. Donor Advisors receive quarterly and annual reports from Stablish Foundation.

Charitable Remainder Unitrusts

Charitable Remainder Unitrusts (CRTs) allow an individual to transform a highly appreciated asset (such as stock or Real Estate) into an income stream that is either for a lifetime or for a term of years without having to pay capital gains income taxes on the appreciation if sold.

CRTs provide the grantor with immediate tax benefits and the provision of steady income. When the grantor subsequently dies, estate taxes are decreased, and a lifetime income continues to be paid to a qualified beneficiary.

Grantors or Income Beneficiaries receive quarterly and annual reports from Stablish Foundation.

Charitable Remainder Annuity Trusts

Charitable Remainder Annuity Trusts (CRATs) allow an annuity insurance contract to pay an individual a set dollar amount over their lifetime. Once the grantor is deceased, the death benefit is paid to the specified charity or charities of their choice.

Grantors or Income Beneficiaries receive quarterly and annual reports from Stablish Foundation.

More Information

Making Donations From Your DAF

Funding your DAF or CRT

Fees

Stablish Foundation has a tiered system in charging fees. Trusts and Donor Advisor Funds that are:

Up to $500K

Stablish Foundation fee is 1.25% of the quarter-end value

$500-750K

Stablish Foundation fee is 1.0% of the quarter-end value

Over $750K

Stablish Foundation fee is 0.75% of the quarter-end value

**Note: All assets in an account are billed at the same fee level. Financial and Investment Advisors often charge investment advisory fees. Stablish Foundation limits these fees to 1.25% or below.