Donor Advised Fund

> You're considering a lifetime gift in partnership with us
> You currently make outright gifts to us and other charities
> You want to stay involved in the work of the charities you benefit
> You admire the investment management of our endowment fund

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A planned gift to the School of

PublicHealth can help professors like

Dr. AndreaShelton bring the

messages of disease prevention,

risk reduction, and health promotion

to youngsters like Robert Howard.

<empty> The University of Texas Health Science Center at Houston is making it easier for you to set up one gift account that makes regular charitable distributions to both us and other charities. Operating somewhat like a private foundation, a Donor Advised Fund (DAF) here gives you the security of skilled financial management and the flexibility and control of guiding your gifts to the charities you are most involved with each year.

Donor Advised Funds operate as part of our endowment, so you have the security of professional management and the opportunity to take advantage of our investment opportunities. The grantmaking procedure is simple, and your DAF offers you complete deductibility of the contributions you make to it plus full documentation on all distributions it makes on your behalf.

In addition, because you can involve your family in deciding which charities your DAF will benefit, you may find that this is a great way to instill and nurture philanthropic values.

How a Donor Advised Fund Works

<empty> You make a minimum initial gift of $100,000 to establish a Donor Advised Fund with the Health Science Center. Additional contributions to the fund can be made at any time.

The gift becomes our property, and is managed as part of our endowment fund. Each year, a percentage of the value of the DAF, determined by our endowment spending formula, is available for grants to charities. You or your advisor suggests the recipients of grants to be made from this distribution account.

We review your suggestions, and, if we approve them, make distributions to the named charities, identifying the grants as coming from your DAF. (Placing this grantmaking authority in our hands ensures that your gift establishing the DAF is complete in the eyes of the IRS and therefore deductible.)

Making Grants

You, or the advisor you have nominated, recommend the recipients of annual grants. A minimum of 50% of the annual grants from your DAF must be distributed to the UT Health Science Center. Similarly, upon termination of your DAF, 50% of the assets remaining in the fund will be distributed to us. Unlike a private foundation, no annual distributions form the DAF are required.

The UT Health Science Center will not approve a suggested grant from your DAF that would benefit you or your advisor, go to a private foundation, support political activities, or be used for any purpose which is not wholly charitable or consistent with our mission.

Here is a comparison of the features of a UT Health Science Center Donor Advised Fund with those of a private foundation and a commercial gift fund:
Features	Donor Advised Fund	Commercial Charitable Gift Fund	Private Foundation
Set-up costs	None	None	Legal and accounting fees
Annual fee	None	Up to 2% annually plus commissions	Record-keeping expenses
Income tax deduction for gifts to fund	50% of AGI for cash gifts 30% of AGI for property gifts	50% of AGI for cash gifts 30% of AGI for property gifts	30% of AGI for cash gifts; 20% of AGI for property gifts
Tax on net investment income	None	None	2%
Minimum Annual Payout	None, but at least 50% of DAF funds must go to the Health Science Center throughout the life of the DAF	Varies	5% of assets
Ability to take advantage of our investment expertise?	Yes	No	No

How Do You Create a DAF?

Email us or call us at 713-500-3200 so that we can assist you through every step of the process.

The University of Texas Health Science Center at Houston
7000 Fannin, Suite 1200
Houston, TX 77030
713-500-3200 | 713-500-3216 (fax)
E-mail: Shirley.Druggan@uth.tmc.edu