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Gift Fund Features, Fees & Investments

The Bank of America Charitable Gift Fund offers the grantmaking benefits of a private foundation, without the higher costs and increased administrative and fiduciary burdens.

Features

Minimum contributions
  • $25,000 for initial contribution
  • $250 for additional contributions
  • $25,000 minimum investable balance
Assets Accepted
  • Cash, securities and mutual funds
  • Restricted stock and closely held business interests
  • Real estate, timberland, farms and ranches
  • Gas, oil and mineral rights
  • Non-financial, tangible assets are considered on a case-by-case basis
Investments
  • Choice of 8 investment objectives: a money market and 7 strategic asset allocation models
  • Funds include a combined mutual fund and ETF layer portfolio as well as a passive construction consisting of ETFs
Grant recommendation options
  • Online
  • Mail
  • Fax a copy of the signed grant recommendation form
  • Email a scan of the signed grant recommendation form
Online account access
Online grantmaking
Tax advantages
  • Receive an immediate tax deduction for your irrevocable contributions
  • Donate appreciated assets without incurring capital gains taxes
  • Your donations often receive more favorable tax deductions than a private foundation
Expertise
  • Philanthropic specialists experienced in managing and distributing grants save you time and money
  • Investment professionals develop and monitor portfolios to help you reach your charitable goals
  • Specialty Asset Managers make it possible for the Charitable Gift Fund to accept a broad range of assets
Simplicity and flexibility
  • Manage your account and make grant recommendations online anytime using our secure website
  • Name your fund account and receive recognition for grants or grant anonymously
  • Name unlimited advisors and successors for your fund at any time
  • No limits on generational transfers

Fees

When you give to charity, you want to ensure that your gifts do the most they can. With the Bank of America Charitable Gift Fund (Gift Fund), you’ll receive strategic advice from a team of philanthropic specialists who can help you fulfill your charitable objectives—from creating a personal giving strategy to advising you about types of assets you can contribute to further the causes that matter most to you.

When you use the Gift Fund, you can:

  • Make the most of your tax advantage: Receive an immediate tax deduction for your contributions to your account and take advantage of tax-free compounding investment returns.
  • Benefit from our expertise to expand your giving: From our team of philanthropic specialists, to our seasoned investment professionals and specialty asset management team, we will work with you to maximize your giving and help ensure that it fits within your broader wealth management plan.
  • Simplify your giving and lessen your administrative burden: Enjoy convenient online tools to manage your account, and we’ll handle all the administrative details and regulatory reporting, freeing you to devote more time and energy to your causes.

Annual administrative fees

Charitable Gift Fund accounts have separate administrative and investment fees.

  • Account balance
  • $0 - $100,000
  • $100,001 - $500,000
  • $500,001 - $1,000,000
  • $1,000,001 - $2,500,000
  • $2,500,001 - $5,000,000
  • $5,000,001 +
  • Annual charge
  • 0.90%
  • 0.75%
  • 0.50%
  • 0.35%
  • 0.25%
  • 0.15%

A link to the full fee schedule, including information on investment fees, can be found within the Charitable Gift Fund's Program GuidelinesPGF Document.

Investments are charged an annual investment management fee by U.S. Trust of 0.12%; one- twelfth of this fee is charged monthly based upon the market value of investments in the Donor’s Bank of America Charitable Gift Fund account. The cash positions within each investment objective are held in the Bank of America Money Market Savings Account. The total investment management fee charged to an investment objective may vary due to construction of the portfolio. In addition to the investment management fee, Donor accounts are assessed fund fees by the mutual funds and ETFs comprising the account’s investment portfolio. Examples of this fee structure and estimates of the breakdown of the investment management fee and the fund level fee that may be charged to a Donor’s account are provided in the chart on this page. Estimates of the fees are calculated using a weighted, blended average of the funds and investment management fees for the funds in each investment objective. The fee rates reflected on that chart are for illustration purposes only, and are estimates based on investment objectives.

For specific information on fees, please refer to the Program Guidelines & FeesPGF Document (PDF, requires Adobe Reader layer).

Investments

The Gift Fund offers 8 Investment Objectives, a money market fund and 7 strategic asset allocation models ranging from All fixed income through Appreciation.

I. Portfolio options

Under each asset allocation model, you may recommend one of the following:

  • Combined mutual fund and ETF layer portfolio (Hybrid)
  • All-ETF portfolio (passive)

II. Investment objectives

An objective should be recommended to the Bank of America Charitable Gift Fund based on your expectation of the fund account’s timeline and purpose. You may recommend a new objective for your account 4 times each calendar year but only once within a 1-month period. You can choose one of the following investment objectives for your account:

Principal preservationEmphasis: Short-term cash investments. Income is moderate to low and varies as short-term interest rates change. Although there is no capital appreciation, account growth can be achieved through income accumulation and reinvestment. Protection against inflation is of little or no concern.
All fixed incomeEmphasis: Current income generation. Due to its focus on fixed-income securities and other appropriate asset classes, the general stability of principal value should be maintained, but is not guaranteed.
Current incomeEmphasis: Current income generation with a modest potential for capital appreciation. Investments are primarily in fixed-income securities with a modest allocation to equities and, where appropriate, other asset classes.
Balanced incomeEmphasis: Current income generation with a secondary focus on capital appreciation through a higher allocation to fixed income than equities and, where appropriate, other asset classes.
BalancedEmphasis: Potential for both current income and capital appreciation with corresponding allocations to fixed income and equities and, where appropriate, other asset classes.
Balanced returnEmphasis: Capital appreciation with a secondary focus on current income through a higher allocation than fixed income and, where appropriate, other asset classes.
Balanced appreciationEmphasis: Capital appreciation with a potential for current income through a higher allocation to equities than fixed income and, where appropriate, other asset classes.
AppreciationEmphasis: Capital appreciation with a modest potential for current income generation. Investments are primarily in equities with a modest allocation to fixed-income securities and, where appropriate, other asset classes.

Investment Benchmarks and Underlying Funds

The returns of our investment strategies are measured against composite benchmarks, which are constructed using the strategic (long-term) asset allocation targets of the asset classes included in each strategy. Appropriate benchmarks are selected for each asset class to provide a fair measure of the strategies’ returns by reflecting the diversification among multiple asset classes. The returns of the benchmarks are gross of fees and do not include an allocation to money market funds.

Exchange-traded fund

An ETF (exchange-traded fund) is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.

ETFs are subject to risks similar to those of stocks. Investment returns may fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.