How Rotary's Donor Advised Fund Works. The Rotary Foundation Donor Advised Fund is an innovative way for individuals and Rotary-affiliated groups to create a separate investment account with the Foundation that is earmarked exclusively for charitable giving. You can choose to do this with an individual account or in conjunction with a larger group of Rotary friends through a group account.

Step 1	Individual or a Rotary-affiliated group (e.g., the Rotary Club of Anytown, USA) makes a minimum initial contribution of $20,000 in cash, securities, mutual funds, restricted and privately held stock, or bonds and receives an immediate tax deduction.
Step 2	Account holders may recommend how the contribution will be allocated among four available investment portfolios, which receive professional asset management.
Step 3	Individual or a Rotary-affiliated group recommends when and how much to grant to charities.
Step 4	Each year, $250 from an individual DAF or one percent of the fair market value of a group DAF is allocated to the Annual Programs Fund to support The Rotary Foundation's programs.
Step 5	Upon the death of the account holder, at least 50 percent of the individual account balance will be transferred to The Rotary Foundation's Permanent Fund, creating a lasting legacy for doing good in the world.

Frequently Asked Questions Regarding Donor Advised Funds

http://www.rotary.org/foundation/development/advisedfunds/faq.html. See the Donor Advised Fund – A Quick Guide at http://www.rotary.org/newsroom/downloadcenter/pdfs/382en.pdf and

the Donor Advised Fund Program Circular http://www.rotary.org/newsroom/downloadcenter/pdfs/daf_circular.pdf for more information.

Tax Benefits of a Donor Advised Fund. You can receive an immediate tax deduction (see note) for contributions to The Rotary Foundation Donor Advised Fund. With contributions of cash, stocks, mutual funds, closely held securities, and in some instances private and restricted securities, you will receive a tax deduction for the fair market value of your contribution on the date it is made.

Contributions of appreciated securities held for more than one year can be deducted on your tax returns without incurring capital gains taxes. The table below shows the tax savings you can realize immediately by making a contribution of appreciated securities.

Tax Savings You Can Realize Immediately
Tax Savings You Can Realize Immediately Tax Savings Immediately	Sell appreciated securities, pay capital gain taxes, and give net proceeds to charity	Give appreciated securities to a Donor Advised Fund
Before-tax "market value" of a US$100,000 gift	$100,000	$100,000
Cost basis of gift	$40,000	$40,000
Capital gains tax at 15%** if securities are sold first before making the gift	( $9,000 )	$0
Value of gift after capital gain taxes	$91,000	$100,000
Tax savings of gift (35 percent tax bracket)*	$ 31,850	$35,000
Additional assets resulting by contributing $100,000 in appreciated securities through a DAF		$12,150
* Does not account for any state and local taxes, alternative minimum tax, or limitations to itemized deductions applicable to taxpayers in higher income brackets. Rules and regulations regarding tax deductions for charitable giving vary at the state level. Please check with your tax advisor. Tax deductions discussed on these pages refer specifically to U.S. federal taxes and could change. ** Cost basis of shares donated: US$40,000.

Professional Asset Management for Donor Advised Funds. Your contribution to a Rotary Foundation Donor Advised Fund is professionally managed and has the potential to grow until you decide when and how to recommend grants. This creates the opportunity for more money to go to charitable causes over time.

Donor Recognition for a Donor Advised Fund. The mission of The Rotary Foundation is to support the efforts of Rotary International in the fulfillment of the Object of Rotary, Rotary's mission, and the achievement of world understanding and peace through local, national, and international humanitarian, educational, and cultural programs. The Foundation welcomes the opportunity to recognize you for your generosity in support of its mission.

Recognition
	Individual Accounts	Group Accounts
Paul Harris Fellow	Yearly and other grants made to the Annual Programs Fund qualify	Yearly and other grants made to the Annual Programs Fund qualify
Rotary Foundation Sustaining Member	Yearly grants made to the Annual Programs Fund qualify	Not applicable
Bequest Society and Benefactor	The amount committed to the Permanent Fund	Not applicable
Major Donor	Any grant made to The Rotary Foundation can be applied	Not applicable

Avon, Sharon Kennedy

Petaluma Home Loans, Paula Reinhold

The Shaw Group - Joe Olsen