FREQUENTLY ASKED QUESTIONS ABOUT YOUR GRANTMAKING

Q: Can I make a grant recommendation from my donor-advised fund to a particular needy family or individual?

A: The Jewish Communal Fund can make grants only to other 501(c)(3) public charities for their general charitable purposes and not earmarked for the benefit of any particular individuals or families. In the case of a scholarship, grants can be made to a general scholarship fund of another public charity where the recipient is selected by the grantee through a fair competitive process.

Q: Can I make grant recommendations from my donor-advised fund for the deductible portion of a membership or fundraising event if I pay the non-deductible portion with personal funds?

A: The Jewish Communal Fund will not pay the deductible portion of a grant when there is an associated nondeductible portion. For example, if you wish to donate to an organization for an event or dinner and you accept tickets, the entire amount (the tickets and the accompanying charitable donation) must be paid personally and not through your fund. If you decline the tickets, you may recommend a grant from your fund.

Q: Why does a grant recommendation need special language in order to be processed?

A: Every grant recommendation must certify that the grant is not in payment of an enforceable pledge, that neither the donor nor anyone else will receive any personal benefit as a result of recommending the grant, and that the grant is not made for lobbying purposes or to support a political campaign. Grant recommendations that do not include the proper language will be declined and you will be asked to resubmit the grant recommendation using this language.

Q: What is meant by an enforceable pledge?

A: An enforceable pledge is a legally binding pledge. The best practice when promising a gift to an organization is to make it explicit that the pledge is not enforceable and that you intend to recommend a grant from your donor-advised fund. That information will enable the charity to associate your name in its database with the grant check sent by the Jewish Communal Fund at your recommendation. The language of recommendation is particularly important when you are solicited to make a multi-year commitment to a charitable organization.

Q: How does the beneficiary organization know that a grant was made at my recommendation?

A: All checks sent to grantee organizations have the donor’s fund name prominently displayed on top of the check. Checks are mailed with a letter acknowledging the name and address of the person(s) recommending the grant. If you prefer a grant to be sent anonymously, please alert us in your letter of recommendation and we will refrain from including your name and the name of your fund.