Frequently Asked Questions
General Information About Your Fund
What should I do with my Fund Agreement?
Keep one signed original and return the other to your financial advisor at Nollenberger Capital Partners. Please call that person if you have any questions regarding the Fund Agreement or other aspects of how the fund is set up.
May I make changes to the Fund Agreement?
Yes, in most cases this can be done easily with a Fund Agreement Amendment, a document that reflects the intended language changes and is signed by you and the President and CEO of the Foundation.
Will I be getting any other documents after my fund is set up?
After we receive your signed Fund Agreement, you will be sent a welcome binder containing information about the administration of your fund, including how to recommend grants and make additional gifts into the fund. The binder will serve as a convenient place for you to keep all future correspondence and materials related to your fund.
How can I check the status of my fund?
The easiest way is to log on to Donor Express, your personal online tool for managing the fund you have established, which is accessed through the homepage of Nollenberger Capital Partners, at www.nollenbergercapital.com. You may view your current fund balance, look at donor statements from previous quarters, make grant recommendations, and research nonprofit organizations. You will also receive a quarterly donor statement in the mail for your reference.
What are my investment options?
To meet your philanthropic objectives, you may suggest that your fund's assets be invested in any proportion in three investment pools: an equity pool, a fixed income pool, and a money market pool. For example, for no risk to principal, funds are generally invested solely in the money market pool. Endowed funds, which are intended to maintain purchasing power over time, typically allocate 65% of assets to the equity pool and 35% to the fixed income pool.
Within each pool, the Nollenberger Capital Partners Foundation hires managers who specialize in particular asset classes to ensure that there is superior performance and adequate diversification. Our goal is to benefit from a range of expertise from managers in a way that would be impractical and cost-prohibitive for individual investors.
Who decides how my fund will be invested?
When you are establishing your fund, you will discuss your philanthropic investment goals with a Nollenberger Capital Partners financial advisor. Once you determine the asset mix for investment of your fund, you will see the returns reflected on your quarterly donor statement. You can always get your current fund balance online using Donor Express. Should you wish to discuss possible changes to the asset allocation strategy for the fund you have established, please contact your financial advisor at Nollenberger Capital Partners.
Recommending Grants through the Foundation
How do I recommend a grant from my fund?
You may recommend a grant online using Donor Express. Or you may download a grant recommendation form from the Foundation's website on this page: www.nollenbergercapital.com/foundation.html — and fax it to us at the Foundation at 415.464.2555. In addition, forms are provided in your welcome binder. You may duplicate these forms if you wish.
What is Donor Express and how do I access it?
Donor Express is your personal online tool for managing the fund you established at the Nollenberger Capital Partners Foundation.
To access Donor Express, go to the Foundation page on the Nollenberger Capital Partners website, at www. nollenbergercapital.com/foundation.html. Once you're on that page, click on the link to the Donor Express log-in page. Then enter your User Name and Password, which can be found in your welcome binder.
If you do not have your User Name and Password, would like to explore the features of Donor Express, or have any other questions about using this tool, please contact Molly Kron, supporting organization coordinator, at 415.464.2558 or mkron@ncpfoundation.org.
To whom may I recommend a grant?
Grants may be recommended to organizations that are recognized by the IRS as tax-exempt, charitable organizations with 501(c)(3) status and that meet the Foundation's due diligence requirements (see Question 23 below).
May I make a grant to a specific individual?
Donor-advised funds may not make grants to individuals. Scholarship funds or funds that are advised by a committee may recommend a grant to support an individual only if that individual has been selected through an objective, predefined process and the grant is for a charitable purpose. An educational scholarship is the best example of this type of grant. In a case like this, we recommend the grant be made to the educational institution that the student will be attending.
Grants cannot be directed to specific individuals who are victims of a disaster or who have a personal illness. Support in these situations may be provided through nonprofit groups that serve many people affected by disasters or illnesses.
In addition, no grant from a fund can benefit a relative of the donor.
May I recommend a grant through my fund to attend a charitable event?
According to IRS regulations, the cost of a ticket to such an event cannot be paid by your fund, even when only a portion of the ticket price is identified as tax-deductible and another portion as non-tax-deductible. Two examples illustrate this point:
a) If a charity's fundraising event is $250 per person, and the charity states that $100 is tax-deductible and $150 is non-tax-deductible, you may not divide the event support between a donor-advised fund and your personal check. You must pay the full $250 personally.
b) If you wish to sponsor a charity's event (at which individual tickets cost $200 per person) at a $5,000 level, you may recommend a grant of $5,000 from your donor-advised fund to support the charity and personally pay $200 per ticket to attend.
What if I am not going to attend the event but wish to support it by buying tickets?
You may support the event by recommending a general operating grant from a donor-advised fund so long as you do not attend the event.
May I pay for my membership dues to a museum, opera, symphony, public radio or television station, etc. through my donor-advised fund?
Generally a membership cannot be purchased through a donor-advised fund or other types of funds, because a member is considered someone who is entitled to certain rights and privileges in return for an annual contribution. (These include membership cards that entitle the donor to reduced or eliminated entrance fees and discounts on purchases.) However, general operating grants to a nonprofit are always allowed.
In general, one way to think about this is to ensure that you do not receive anything beyond what is considered "incidental benefits" as a result of your membership. Examples of incidental benefits are a t-shirt, coffee mug, or name recognition.
If I refuse a membership benefit can I make a grant for membership through my fund?
Yes, but only if you explicitly reject the benefit at the time the gift is made. You cannot choose to refuse the benefit after you already received it. In a case like this, we suggest that you recommend the grant for general operating support in order to avoid the appearance of conflict.
May I continue to make my annual membership contribution to my place of worship through my donor-advised fund?
You may continue to recommend grants for religious institution memberships, which are not affected by legislation or regulations.
However, you may not pay for religious school tuition through a grant from your donor-advised fund.
May I recommend a grant to nonprofits that engage in lobbying?
You can recommend grants to nonprofits registered with the IRS as 501(c)(3) organizations that engage in lobbying or the practice of advocating their clients' interests. However, the grant you recommend can only be for general operating support and not for specific lobbying activities.
Do you ever ask nonprofits to provide reports on the work that my fund is supporting?
There are instances where it makes sense to request a final report from an organization to which you are recommending a grant. Such instances would be when the grant is of a magnitude that is beyond the contribution size the organization typically receives, when the grant is related to a specific outcome you are interested in, or if there are specific activities the organization needs to complete in order to receive your contribution (such as the case of a challenge grant).
In a case like this we ask the nonprofit to sign a grant agreement prior to distributing the funds to ensure that they understand the conditions under which the grant is being made.
What is a challenge grant and how do I make one?
Challenge grants are grants offered to nonprofits to challenge them to raise matching monies. An example is when a donor offers a nonprofit a challenge grant of $50,000 and the nonprofit must raise $50,000 in order to receive the grant. We will enter the grant in our system but not complete processing it until the challenge has been met by the nonprofit. If you are interested in making a challenge grant, Foundation staff will be happy to discuss the details with you.
May I make a pledge through my fund? What about a multi-year grant?
Although you may not fulfill an irrevocable personal pledge through your fund, you may recommend that the Foundation make a multi-year grant from your fund to a nonprofit organization or school. The assets to fulfill a multi-year grant must be segregated from the balance of the fund in order for the Foundation to be able to complete these kinds of grants. We will, however, leave these monies in the investment pool until such time as the grant payment comes due. Please talk to staff at the Foundation when you want to make this kind of grant so that we can help facilitate it.
May I make an anonymous grant?
Yes, you can make a grant anonymously at any time. In addition to requesting anonymity when establishing your fund (on the New Fund Worksheet), you can also indicate your preferences each time you recommend a grant. Both the name of your fund and your own name can remain anonymous to grant recipients and will not be published in the Foundation's public listings of grants.
Where may I recommend grants?
You may recommend grants anywhere in the U.S. and internationally to support a charitable organization. Special due diligence is conducted for international grants (see question 23 below). If you are interested in receiving our International Grants Checklist, please contact Debra White, grants manager, at 415.464.2532 or dwhite@ncpfoundation.org. Please note there is a $2,500 minimum grant size for international grants. For all other grants the minimum is $250.
May I recommend grants to private foundations?
To comply with IRS regulations, the Foundation cannot distribute grants to non-operating private foundations, even though they are 501(c)(3) organizations. However, grants may be made to private operating foundations (private foundations that use the bulk of their income to provide charitable services or to run charitable programs of their own).
What are the Foundation's due diligence requirements?
Due diligence is the process we use to ensure that organizations are qualified to receive grants and are capable of fulfilling your charitable intent. The due diligence review typically involves our receiving and reviewing the organization's current 501(c)(3) tax-exempt letter as well as financial and programmatic information.
Organizations other than religious institutions must also comply with the Foundation's nondiscrimination policy, which is:
"The Nollenberger Capital Partners Foundation will not knowingly support organizations, projects, and programs that discriminate on the basis of race, color, religion, gender, national origin, age, medical condition, veteran status, marital status, disability, ancestry, sexual orientation, or any other characteristic protected by law. We therefore require that all grant applicants and recipients submit a signed Nondiscrimination Policy confirming compliance with the Foundation's policy and with all applicable local, state, and federal anti-discrimination laws."
For grants that are recommended outside the U.S., the Foundation may use the services of KPMG's Global Grants Program to determine whether grantees are public charities (or their equivalent), comply with the U.S. government's anti-terrorist funding requirements, and follow all applicable domestic and international tax laws.
How long does it take to process a grant recommendation?
Grants to organizations that have been supported in the past can be processed quickly, usually within five business days. Grants to organizations not yet supported through the Foundation may take longer to process (one to two weeks) to allow time for us to receive materials and ensure all the proper due diligence is completed before making the grant.
Can you send me the grant check so I can deliver it to the nonprofit?
The Foundation sends checks directly to grantee organizations. You will, however, receive a copy of the letter that accompanies the check so you will know when it was sent. If you use Donor Express (the online fund administration tool) when recommending grants, you will also be able to view and edit this letter.
What is the minimum grant amount?
The minimum grant amount is $250 to U.S. based nonprofits. The minimum for grants made internationally is $2,500.
Does the Foundation have a spending rule, and if so, how does that apply to the grants I recommend?
Yes, the Foundation has a spending rule for funds established as endowments. It does not apply to expendable funds. The spending rule is a formula that determines the amount of money available for grantmaking from endowments and is based on a designated percentage of the fund's fair market value.
The Foundation's current spending policy distributes annually 5% of an average 12-quarter market value. Based on historic stock and bond market performance, this should allow the endowment fund to distribute grants in inflation-adjusted amounts in perpetuity.
What if I don't know who to make grants to or want to know who is doing the best job in my area of interest?
We have excellent staff and extensive research capabilities that are available to help you. For example, we can help you learn about nonprofit groups that work in your areas of interest or do customized research on issues that interest you. You may also learn about thousands of nonprofit groups in the "Research a Group" section of Donor Express.
Gifting Assets to the Foundation
Can a donor get a refund of a gift made to the Foundation?
All contributions, once accepted by the Board of Directors, are an irrevocable contribution to the Nollenberger Capital Partners Foundation and are not refund-able. However, if you want to terminate your fund, simply recommend grants of the fund's entire balance, and we will then close the fund.
How do I gift publicly traded securities?
Please contact Lizzie Cairns, senior accountant, at 415.464.2514 or lcairns@ncpfoundation.org each time you wish to gift securities. She will provide you with current account information for stock transfers. This will ensure that your contribution is credited to the correct fund in a timely fashion.
Charities are not permitted to value non-cash gifts, such as artwork and real estate. It is the responsibility of the donor to obtain an independent, professional valuation.
May I give anything besides cash and publicly traded securities? How?
Yes. You may give real estate, closely held stock, an interest in a family business, and many other assets. All such gifts are reviewed individually. We will talk with you about the details of your proposed gift and the appropriate procedure for transferring the asset. We do not accept vehicles or livestock.
If I am giving cash, how do I make out my check?
Checks should be made out to Nollenberger Partners Capital Foundation with a note in the memo section as to which fund it is for — e.g., the XYZ Fund. Or, send a cover note indicating the name of the fund to which the contribution should be credited.
What information will be on my receipt?
In all cases the receipt will show the date the gift was received. If the contribution was a check, the dollar amount and check number will also be shown.
If the gift was in the form of securities, the receipt will list the date the securities transferred and the number of shares. We also provide the value of the stock at the time it was received into our account (or the date the physical stock was delivered to the Foundation). The value is based on the high and low average for the day of the stock multiplied by the number of shares, with appropriate disclaimers.
Receipts for real estate and other non-cash gifts identify the property transferred. The IRS may require you to obtain an appraisal and to file a Form 8283 with your income tax return. We can provide you a Form 8283 on request.
How long does it take to process a gift to my fund?
Most gifts are processed within 72 hours or sooner after receiving them. Publicly traded securities are typically sold upon receipt unless special circumstances dictate that the Foundation holds the stock for a period of time. Once sold, the proceeds are reinvested in the Foundation's investment pools in accordance with the donor's choices. Of course, the processing time for real estate, non-publicly traded securities, and other unique gifts will take longer, depending on the nature of the gift and the liquidation plan.
Can I make a gift to my fund through my estate?
Yes, your fund can be named as a beneficiary of your estate to fulfill your charitable goals. If you would like to discuss this further, please contact Aviva Shiff Boedecker, director of gift planning, at 415.464.2516 or aboedecker@ncpfoundation.org.
How do I transfer assets to my fund at the Nollenberger Capital Partners Foundation from my commercial donor-advised fund (e.g., the Schwab Charitable Gift Fund or Fidelity's donor-advised fund program)?
Simply recommend a grant of any or all the assets in the commercial fund to the Nollenberger Capital Partners Foundation to be added to your donor-advised fund.
May I make a gift to my fund from my private foundation?
Yes, these contributions are allowed and at this time do count toward the 5% minimum distribution requirement for private foundations. We suggest that you consult with your legal counsel when making a grant from a private foundation to a donor-advised fund.
May I transfer my private foundation to my fund?
Yes. The procedure for rolling a private foundation into a donor-advised fund is fairly easy. You simply recommend a grant of all the assets to your donor-advised fund and then notify the IRS and the state in which the private foundation is incorporated of the change. Staff can help you and your attorney with the necessary documents.