DonorsT rust DONOR PROSPECTUS DonorsTrust is turning twenty. We are proud of what hundreds of liberty-focused organizations have accomplished during those decades. More importantly, we are pleased that our account holders have recommended more than $1.1 billion to support their efforts (and that of so many others). DonorsTrust seeks a strong and vibrant civil society fostered by private philanthropy and private institutions. Undergirding such a society are the bedrock principles of limited government, personal responsibility and free enterprise. Much of our giving has gone to the think tanks, student organizations, public interest law firms, and educational groups that advocate for these cherished principles of freedom. Yet our donors also give generously to the religious groups, medical research institutes, educational programs, social welfare, and arts institutions that enrich our corporate civic life. These days we receive more nods when we ask if people understand the simplicity, tax savings, and security that donor-advised funds (DAFs) provide. We are not surprised, since donor-advised funds continue to proliferate across the nation. Nationally, new DAF accounts are growing four times faster than are new private foundations. In 2018, the number of people using DonorsTrust grew nearly twenty percent, and is up 62 percent over the past five years. While our DAF accounts remain our primary program, we also seek to be a like-minded partner with donors who want to grow the resources available to advance liberty over the long term. Here are some of the ways we did this in 2018: • We focused on helping donors support their principles through planned and estate giving. Partnering with a number of state-based and national groups, we developed a program that explores the various planned giving tools that allow for more strategic philanthropy both in life and as a legacy. • The Novus Society, our donor-advised fund program for givers under age 40, continues to grow. As the philanthropic world concentrates on engaging younger donors, we are proud to have taken early steps toward building up a new generation of philanthropic leaders. • The DonorsTrust team attended, spoke at, and sponsored more than 45 dinners and events hosted by non-profits across the liberty movement. We had countless meetings with non-profit leaders. All of these gain us a deeper understanding of the ebb and flow of these groups’ activities and projects, enabling us to enhance the knowledge our account holders already bring to the table. 2019 is already proving to be another strong year, though it will not be one without challenges. There is work to be done to ensure that the concepts of free enterprise and limited government remain the norm, not the exception. All of us at DonorsTrust are proud to work each day with generous philanthropists who freely give to preserve these unique and important ideas for future generations. Lawson R. Bader, President & CEO Building A Legacy of Liberty At DonorsTrust our primary focus is on our donors and protecting their donor intent. Over time, we have too often witnessed philanthropic capital stray from an original donor’s freemarket ideals—the very principles that made their philanthropy possible in the first place. As an antidote to this drift, DonorsTrust was established in 1999 as a 501(c)(3) public charity to preserve the intent of donors dedicated to the ideals of limited government, personal responsibility and free enterprise. We are a community foundation bound not by geography but by a set of principles, offering donoradvised funds that allow donors across the country to advance their philanthropic goals. DonorsTrust offers the benefits you expect from any donor-advised fund, such as generous tax advantages and simplified and private giving. We set ourselves apart with our focus on preserving donor intent and with our shared commitment to supporting organizations that do not rely on government funds to meet their charitable objectives. The DonorsTrust Story The idea for DonorsTrust began with a single donor concerned about whether the community foundation to whom he’d entrusted his money would stay faithful to his charitable wishes after his death. DonorsTrust founders Whitney Ball and Kim Dennis suggested that what he needed was a community foundation for liberty-minded donors. That idea grew into a vision, and that vision became DonorsTrust. Since inception, DonorsTrust has granted out over $1.1 billion to over 1,900 charities that protect our constitutional liberties and strengthen civil society without expanding government. We believe that the key to solving societies problems comes from the private philanthropy. How Does a Donor-Advised Fund Work? A donor-advised account is the easiest, most efficient way to manage your charitable giving. Think of it as your own charitable savings account. Many use a donor-advised fund as an alternative to a private foundation, thus eliminating the need for required distributions, mandatory IRS filings, and annual excise taxes. To begin, you establish your DonorsTrust account with a minimum contribution. You can fund the account with cash or in other tax advantaged ways: using appreciated stock, closely held stock, or personal property such as real estate. All contributions to the account are immediately tax deductible and as such are legally controlled by DonorsTrust. Through the account, you, your family, or your designated advisor(s) can request grants to public charities. You may make grant recommendations to a variety of local, national, or international nonprofit organizations at any time and throughout the life of your account. Making grant requests is simple – use our online portal, email or fax in a simple form, or call us directly. Maximize your charitable efforts by investing your account’s assets in various investment pools maintained by DonorsTrust. This can become an important strategy to enhance your giving power over time. Complete Your Application Contribute & Take Your Deduction Support Your Causes Build Your Charitable Legacy A simple application gets you started. $10K opens your account, and your contibutions are immediately tax deductible. Recommend grants to any number of public charities. Make an impact for people and ideas with your grantmaking over time. Account Basics Minimum Initial Contribution: $10,000 Minimum Subsequent Contribution: Minimum Grant Recommendation: 1% $100 Administrative fees equal of the account balance annually. No minimum account balance after initial gift. No minimum annual grant-making requirements. $500 The Benefits of Partnering with DonorsTrust Simplified Giving: Tax Advantaged: Opening an account is simple. Once open, our team handles the administrative side of giving so you can focus on what counts. Stretch your giving farther with gifts of appreciated stock or real estate. Receive more generous tax treatment than a private foundation. At first, I feared that donating through a third party— DonorsTrust—would be cumbersome. It all seemed complicated… filling out forms to donate, etc. I was so wrong. Donating through DonorsTrust is super easy—and saves me so much time. I initially established an account mainly for tax savings. I had proceeds from a house sale and knew I’d be making charitable gifts in the future. Working with the knowledgeable staff at DonorsTrust to set up an account couldn’t have been easier. —Frayda Levy, New Jersey —Ann Fitzgerald, Virginia Planned Giving: Fostering New Givers: Use your fund to safeguard the charitable aspects of your estate plan or as the charitable beneficiary of complex or split-interest gifts. Givers under age 40 can grow their charitable muscles, increase their impact, and connect to peers and mentors through our Novus Society. Personalized Service: Commitment to Liberty: When you call our office, you’ll talk to a person. We believe simplifying giving means personalizing it as well. We know the liberty movement, and we, like our clients, want to see those organizations advancing liberty grow. So why DonorsTrust vs. Fidelity or Schwab? For me, it would be that it’s a more focused fund and there are consultative aspects that you aren’t going to get anywhere else. DonorsTrust has a presence with most of the places we visit within the network. It’s a wholesome place to be involved. —John, Indiana —George Pearson, Kansas Donor Intent Protection: Flexible Giving: We share your passion for using philanthropy to support the cause of liberty, and we are committed to protecting your donor intent. Receive more flexibility on timing and privacy than with a private foundation or checkbook giving. 2018 By the Numbers Average account size: $570,280 Median account size: $18,717 Contributions to Accounts: Largest grant was $146,660,000 $10m to the Foundation for Jewish Camping $5,000 $73,890 Grants to Charities: $195,970,000 Median grant: Average grant: Smallest grant was Public policy giving – 2018: 67% $100, 2,032 grants recommended to 682 unique charitable organizations a sum contributed to hundreds of organizations $1,356.2 Contributions to donor-advised accounts in millions $914.67 $1,052.2 $1,160.03 $785.41 Cumulative 2014 Grants from donor-advised accounts in millions 2015 2016 $900.94 $656.89 2017 $1,011.54 2018 $1,106.48 $781.09 Cumulative Annual Volume of Grants Payout Ratio grants disbursed/contributions received 2014 2015 2016 2017 1,546 1,619 1,601 1,684 2014 2015 2016 2017 77% 79% 2018 2,032 2018 80% 83% 82% Cumulative Annual 88% 96% 87% 105% 78% 2014 2015 2016 2017 2018 Select Grantees Nearly 70% of grants recommended by our clients go to liberty-oriented policy groups — including state and national think tanks, student programs, university centers, and public interest law organizations. Our clients also give generously to medical, arts, religious, and civic charities that don’t rely on significant amounts of government funding (generally not more than 25%). Below is just a sampling of the hundreds of organizations for which our clients recommend support through their funds. Arts American Museum of Natural History American Private Radio Art Institute of Chicago Central Florida Ballet Los Angeles Chamber Orchestra Midland-Odessa Symphony and Chorale National Dance Institute Philadelphia Museum of Art Philadelphia Orchestra Association Civic Organizations ACE Programs for the Homeless Autism Society of Minnesota Best Friends Animal Society Better Together Boy Scouts of America Civil War Trust Coast Guard Foundation First Book Give Directly Heifer Project International Mt. Vernon Ladies Association New York Historical Society Partnership for the Homeless Salvation Army Union Rescue Mission World Monuments Fund Education American Heritage Education Foundation Christian Montessori Fellowship Home School Foundation Institute for Applied Tinkering Jackson Hole Classical Academy Jewish High School of Connecticut Inc. Lawrence Academy St. Albans School St. Matthew School Success Academy Charter Schools Wyoming Catholic College Higher Education Programs Baylor — Political Science Department, Post-Doctoral Fellowship UC Berkeley — Law and Economics Program Brown — Political Theory Project Catholic University — Principled Entrepreneurship Program Chapman University — Smith Institute for Political Economy and Philosophy Cornell — Cornell Journal of Law & Public Policy Georgetown — Tocqueville Forum on the Roots of American Democracy Gettysburg College — Civil War Era Studies Program GMU — Antonin Scalia Law School; Mercatus Center Harvard — Program on Constitutional Government, Post-Doctoral Fellowship Hillsdale College — Student Independence Grant & Loan Fund Loyola University — David Hume Forum Ohio University — George Washington Forum Princeton — James Madison Program University of Arizona — Center for the Philosophy of Freedom University of Maine — Department of Political Science, Visiting Lectures University of Virginia — Program in Western Civilization and American Institutions Medical & Science Breast Cancer Research Foundation Cold Spring Harbor Cornell Laboratory of Ornithology Fred Hutchinson Cancer Research Center Hospice of the Valley Insight for the Blind Jupiter Medical Center Foundation Juvenile Diabetes Research Foundation International Los Angeles Jewish Home for the Aging Massachusetts General Hospital Marijuana Foundation Memorial Sloan-Kettering Cancer Center Rockefeller University, Medical Research Shriners Hospitals for Children St. Jude Children’s Research Hospital University of California at Berkeley Laboratory Public Interest Law Becket Fund for Religious Liberty Cause of Action Center for Individual Rights Institute for Justice Landmark Legal Foundation Mountain States Legal Foundation National Right to Work NFIB Legal Foundation Pacific Legal Foundation Public Policy ACTA Acton Institute American Enterprise Institute American Federation for Children Growth Fund American Majority Americans for Limited Government Foundation Americans for Prosperity Foundation Americans for Tax Reform Foundation Atlas Network & Members Ayn Rand Institute Beacon Center of Tennessee Capital Research Center Cato Institute Center for Competitive Politics Center for Independent Thought Center for Security Policy Citizens in Charge Foundation Citizens Against Government Waste Claremont Institute Commentary Committee for a Constructive Tomorrow Commonwealth Foundation Competitive Enterprise Institute Ethics & Public Policy Center Federalist Society Foundation for Cultural Review Foundation for Government Accountability Franklin Center Free to Choose Network FreedomWorks Foundation Galen Institute Goldwater Institute Heartland Institute Heritage Foundation Hoover Institution Hudson Institute Illinois Policy Institute Independent Women’s Forum Institute for Faith, Work & Economics Institute for the Analysis of Global Security Institute of World Politics Institute on Religion & Democracy Jerusalem Institute for Market Studies Lucy Burns Institute Manhattan Institute Marijuana Policy Project Media Research Center Middle East Forum Milton and Rose D. Friedman Foundation National Legal & Policy Center National Review Institute National Right to Life Educational Foundation National Taxpayers Union Foundation NRA Freedom Action Foundation Pacific Research Institute PERC Philadelphia Society Philanthropy Roundtable Reason Foundation School Performance, Inc. Second Amendment Foundation State Policy Network & Members Talent Market Taub Center Tax Foundation Turning Point USA Washington Institute for Near East Policy Religious All Souls Unitarian Church Alpha USA American Humanist Association American Islamic Congress B’nai B’rith Foundation of the US Beth El Hebrew Congregation Catholic Association Foundation Christian Broadcasting Network Cru Eternal Word Television Network Falls Church Anglican First Presbyterian Church of Midland-TX Focus on the Family Jewish Federation of North America Jewish Student Enrichment Center Inc. Legionaries of Christ Museum of the Bible Oakseed Ministries International Our Lady of Mount Carmel Catholic Church Relevant Radio Teen F.L.O.W Youth Ministries Temple Shir Tikvah Young Life Student Programs Ashbrook Center Bill of Rights Institute Foundation for Economic Education Fund for American Studies Institute for Humane Studies Leadership Institute Student Free Press Association Students for Liberty Young America’s Foundation Donors Capital Fund Board of Directors This report reflects the performance of DonorsTrust as well as Donors Capital Fund, a Type I supporting organization associated with the Trust that provides specialized asset management for donor-advised funds. Like DonorsTrust, Donors Capital Fund is committed to supporting liberty and strengthening American civil society by promoting private solutions rather than government programs for modern dilemmas in a variety of arenas. For more information, visit: www.donorscapitalfund.org. Lawson R. Bader, DonorsTrust Arthur C. Brooks, American Enterprise Institute Scott G. Bullock, Institute for Justice Kimberly O. Dennis, Searle Freedom Trust Steven Hayward, Pepperdine University Kris Alan Mauren, Acton Institute Adam Meyerson, Philanthropy Roundtable Roger R. Ream, Fund for American Studies Serving a Community of Givers and Doers DonorsTrust is a community of donors devoted to creating a better future. Our donors support charities they believe protect our nation’s constitutional liberties and strengthen civil society through private institutions rather than with government programs. Our marque donor-advised fund program simplifies, protects, and promotes charitable giving for donors of all types, but DonorsTrust offers more than donor-advised funds. Here are some of our other programs. Novus Society The donor society for emerging philanthropists under 40 that helps younger givers connect with likeminded peers, learn from established philanthropists, and grow their charitable impact. Whitney Ball Memorial Fund Named in honor of DonorsTrust’s founding president, this fund offers donors a way to support DonorsTrust and its work directly, which in turn grows the broader constellation of liberty-minded organizations. Fiscal Sponsorships A way to help social entrepreneurs incubate new liberty-advancing charitable efforts on the way to being full-fledge non-profit organizations. Strategic Venture Funds A targeted account for donors to pool resources toward charitable action tackling a particular social problem. BOARD OF DIRECTORS Lawson R. Bader George G. Coates James E. Piereson Thomas E. Beach Kimberly O. Dennis, Chair All contributions, once accepted to donor-advised fund accounts and strategic venture funds, are irrevocable charitable gifts to DonorsTrust or Donors Capital Fund (DCF), both 501(c)(3) public charities. DonorsTrust or DCF has exclusive legal control over the assets contributed, and does not provide goods, services, or personal benefits in exchange for contributions. Grants from accounts are made upon request to board-approved charities. Grants from accounts are not approved if a grantee provides any person goods, services, or release from an existing legal obligation (including a legally binding charitable pledge) in return. Grantees must be publicly supported charitable organizations or private operating foundations, and may not use grant proceeds for lobbying or political campaign activities. 1800 Diagonal Road, Suite 280, Alexandria, VA 22314 voice 703.535.3563 fax 703.535.3564 www.donorstrust.org