Donor advised fund - The T. Rowe Price Program for Charitable Giving

About the Program

What is the tax identification number for the Program?

Who oversees all Program operations?

What are the responsibilities of the Program's Board of Directors?

Contributions

What is the minimum contribution?

May I make a gift of securities? What value is placed on my gift?

What fees are applicable to the sale of securities donated in kind to the Program for Charitable Giving?

Can I donate from my IRA to the Program for Charitable Giving now?

Can I leave assets in my IRA to the Program for Charitable Giving?

Why not contribute directly to the charity of my choice?

Is there a minimum account balance?

Grants

How do I support charities of my choice?

May I make a grant recommendation from my account as soon as it's established?

How long will it take for my recommendation to be considered?

If my grant recommendation is approved, how will I be recognized?

Why would a grant recommendation be turned down?

Am I required to distribute 5% from my donor-advised fund account each year?

General Giving Fund

What is the General Giving Fund of The T. Rowe Price Program for Charitable Giving?

Why would I consider a gift to the General Giving Fund?

Investment pools

What investment options are available?

How do I find out how the investment pools are performing?

Fees

What are the fees associated with a donor-advised fund account?

About the Program

Q:

What is the tax identification number for the Program?

A:

The employer/tax identification number is 31-1709466.

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Q:

Who oversees all Program operations?

A:

Click here to learn more about our Program's leadership.

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Q:

What are the responsibilities of the Program's Board of Directors?

A:

As a 501(c)(3) organization, the Program has a Board of Directors with ultimate authority over investment and grant decisions, including the right to approve grant recommendations and investment allocations.

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Contributions

Q:

What is the minimum contribution?

A:

The minimum initial contribution is $10,000. Subsequent donations can be for $500 or more.

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Q:

May I make a gift of securities? What value is placed on my gift?

A:

The Program accepts marketable securities, which are usually sold the next business day after receipt in the Program's account in good order. Two values apply:

  • The donation amount, which you report to the IRS, will be the average market value of the securities on the day the Program receives them in good order.
  • The proceeds amount, which is placed in your donor-advised fund account, equals the actual selling price of the securities minus brokerage and other fees associated with the sale. Due to market fluctuation, this value may be more or less than the donation amount.

We will report both values to you in writing. You may also call a Program service associate for this information.

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Q:

What fees are applicable to the sale of securities donated in kind to the Program for Charitable Giving?

A:

Security transactions related to Program donations are subject to commissions and all other applicable fees. For stocks sold through the Program's account at T. Rowe Price, the brokerage commission is $9.95. All fees are subject to change without notice. The commissions for securities sold through other firms with which the Program has an account (for example, Charles Schwab, E*Trade, Morgan Stanley SmithBarney) are set by those firms.

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Q:

Can I donate from my IRA to the Program for Charitable Giving now?

A:

Yes, you can contribute assets that you have withdrawn from your IRA to the Program. Please note that withdrawals from your IRA are taxable and are included as part of your ordinary income. If you do contribute to the Program, you can claim a charitable income tax deduction for the amount of the contribution in the year in which it is made (up to the IRS limits). Prior to making the contribution, you may want to discuss this decision with your tax advisor or attorney to ensure that these assets are not needed for you or your family.

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Q:

Can I leave assets in my IRA to the Program for Charitable Giving?

A:

Yes, you can leave your IRA or other retirement accounts to the Program for Charitable Giving. The most common way to do this is to name the Program as the primary beneficiary of your IRA or retirement account.

If you wish, you may inform the Program of your intentions and provide account information. Simply complete a Program New Account form and indicate that the contribution will be made through your estate. This ensures that account information and the names of donor-advisors are included in the Program's records.

The advantage of this strategy is that your estate will receive an estate tax charitable deduction for the amount of the bequest. Prior to making the contribution, you may want to discuss this decision with your tax advisor or attorney to ensure that these assets are not needed for you or your family.

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Q:

Why not contribute directly to the charity of my choice?

A:

The Program for Charitable Giving offers several features that may be relevant and advantageous to you in achieving your charitable giving objectives and strategies.

Specifically, the Program offers you:

  • The ability to take a tax deduction (up to the allowable IRS limits) in the year of the gift.
  • The opportunity to make your grant decisions over a number of years. You decide when you want to support the organizations you feel most strongly about.
  • The ability to provide support to multiple nonprofits from one donation of stock.
  • The potential to grow your gift within managed investment pools to increase the amount you ultimately contribute. This strategy is especially advantageous for philanthropists who seek current tax advantages yet have high charitable aspirations and a longer investment time horizon.
  • The convenience of managing your charitable giving through one account that provides quarterly statements documenting all account activity.
  • The ability to name multiple advisors and contributors to your account, promoting charitable giving within your family or business.
  • A resource to assist you in researching charitable organizations that may be compatible with your charitable mission or objectives.
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Q:

Is there a minimum account balance?

A:

Yes. The minimum account balance is $2,500 per investment pool. Donors whose accounts fall below the minimum are notified prior to any action by the Program.

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Grants

Q:

How do I support charities of my choice?

A:

You make a grant recommendation for a distribution from your donor-advised fund account. Grants may be made to U.S. public charities, private operating foundations, and certain governmental entities. As a result of the Pension Protection Act of 2006, some supporting organizations are no longer eligible for a Program grant. The minimum grant recommendation is $100. To review the charitable causes supported by the Program, click here.

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Q:

May I make a grant recommendation from my account as soon as it's established?

A:

Yes, you may make a grant recommendation once your Program contribution has been processed.

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Q:

How long will it take for my recommendation to be considered?

A:

All grant recommendations are reviewed by the professional staff of the Program.

The length of the review process is contingent upon:

  • Thoroughness of information provided with the grant recommendation (federal tax ID number/EIN for charitable organization, mailing address, etc.).
  • The Program's previous experience with the charitable organization recommended.
  • The dollar amount of the recommended grant:
    Grant recommendations of $50,000 and up to $100,000 require the approval of the president. Grant recommendations of $100,000 or more require the approval of the Board of Directors.

We anticipate reviewing all grant recommendations and notifying donors within seven business days of receiving the grant recommendation.

You will receive a copy of the letter sent to an organization receiving a Program grant based on your recommendation. You will also be notified of the reasons that a recommendation could not be approved.

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Q:

If my grant recommendation is approved, how will I be recognized?

A:

The Program sends a letter to an organization receiving a Program grant based on your recommendation. You can request that the letter will include your name as the advisor for the grant, the name of the account, and the address. Or you can remain anonymous. You will receive a copy of this letter.

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Q:

Why would a grant recommendation be turned down?

A:

The Program makes every effort to honor grant recommendations. Remember that grants must meet the following criteria:

  • The purpose of the grant must be for a designated charitable cause:
    - Arts and Culture
    - Education
    - Environment
    - Human Services
    - Medicine and Science
    - Religious Activities
    - Other Innovative Charitable Undertakings
  • The grant recipient must be a recognized U.S. public charity, private operating foundation, or qualified governmental entity and directly support the Program's designated causes. Please note that some supporting organizations are not eligible for a grant.
  • Grants may not be used to fulfill any preexisting pledge.
  • No impermissible benefit (for example, school tuition, membership fees, dues, goods bought at charity auctions) may be received by any individuals or entities connected to a Program account.
  • Grants may not be used for lobbying, political contributions, or support of political campaigns.
  • Grants may not be made to benefit a specific individual, private non-operating foundation, or foreign-registered charitable organization.
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Q:

Am I required to distribute 5% from my donor-advised fund account each year?

A:

The Program requires that the total dollar amount of grants issued by the Program be equal to at least 5% of the Program's total assets (based on a five-year average). Over the years, the Program has made grant distributions of over 20% of the average assets held by the Program in a particular year.

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General Giving Fund

Q:

What is the General Giving Fund of The T. Rowe Price Program for Charitable Giving?

A:

The Program has established a General Giving Fund, which accepts contributions on an unrestricted basis. This fund will be used by the Program in making grants according to Program guidelines. It may also be used to cover administrative and overhead expenses of the Program as a whole. Like all gifts made to the Program, donations to the General Giving Fund are irrevocable and donors realize their allowable charitable tax deduction in the calendar year in which the donation is made. No donor interest in regard to investments or grants is established.

The General Giving Fund also receives assets from donor-advised fund accounts where the advisory rights have lapsed or terminated; from donor-advised fund accounts that fall below the $2,500 minimum (for an extended period); and accounts from which no grant activity has been recorded within five years.

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Q:

Why would I consider a gift to the General Giving Fund?

A:

The General Giving Fund provides you with an immediate outlet or direction for your charitable donation to the Program. This strategy works best for individuals without a general interest in how their donation will be put to use or who do not have the time or desire to investigate and research appropriate charitable outlets. Grants using assets donated and placed in the General Giving Fund are determined by the Board of Directors of the Program.

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Investment pools

Q:

What investment options are available?

A:

The Program offers six investment pools, each with a specific risk/return objective. The pools are composed of no-load mutual funds managed by T. Rowe Price.

The T. Rowe Price investment approach strives to achieve superior performance while considering risks incurred versus potential rewards. Click here for more detailed information on the investment pools. When you open your donor-advised fund account, you recommend one or more pools in which to invest your contribution. You can request a change in your investment selection at any time with no fee.

Donor-advisors associated with a T. Rowe Price Program for Charitable Giving account with a balance of $3 million or above may request separate portfolio management for their fund account. This service offers an opportunity to recommend the account be invested in individual securities, bonds, and mutual funds. Click here for more information.

All investment pools and separately managed portfolios are subject to market risk, including possible loss of principal.

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Q:

How do I find out how the investment pools are performing?

A:

The Program updates the pool performance after the end of each quarter and posts it on the Program's website. Click here to go to the most recent pool performance.

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Fees          

Q:

What are the fees associated with a donor-advised fund account?

A:

The Program assesses an annual administrative fee on all donor-advised assets to help cover operating and administrative expenses. The prorated assessment is made on a daily basis and is reflected in the net asset value of each investment pool. Annual administrative fees are as follows:

Account Balance Administrative Fee
Less than $500,000 0.50%
$500,000 - $999,999 0.39%
$1 million - $2,499,999 0.18%
$2.5 million - $4,999,999 0.12%
$5 million - $14,999,999 0.10%
$15 million and over 0.09%


The Program has established service agreements with T. Rowe Price Associates, Inc., to manage the investment pools operated for the benefit of the Program and its donors. Investment returns are net of expenses of the underlying mutual funds. Annualized expense ratios for the pools have generally ranged from 0.35% to 0.85%. Click here for the pool's annualized expense ratios as of the last quarter.

The total annual fees are the sum of the administrative and investment fees.

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