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Frequently Asked Questions
Why do the sports and entertainment communities need a national nonprofit
organization focused on promoting philanthropy with their communities?
The Giving Back Fund may be a preferred option over a local community foundation if a donor will be
recommending grants in more than one city, as is often the case with professional athletes and
entertainers who split their time in multiple states. It is also a good choice given the possibility of player
trades from one team to another in a different city.
The Giving Back Fund is experienced in accommodating the unusual and sometimes unpredictable
schedules of the sports and entertainment industries. We provide services customized to the needs of
high-profile individuals.
What Services Does The Giving Back Fund provide for the sports and entertainment
communities?
The Giving Back Fund provides philanthropic consulting, management, and mentoring to the sports and
entertainment community. We serve as a trusted philanthropic advisor and provide a wide array of
philanthropic services tailored to meet the needs of our donors. The Giving Back Fund also develops
proprietary programs designed to increase effective giving among sports and entertainment
professionals--- programs such as our Fundraising Summit.
We work closely with a high-profile donor and his or her representatives to develop a philanthropy team.
Together we assess all of your resources: your personal donations, availability, corporate sponsors,
media appeal, etc. to develop customized programs that leverage your celebrity to enhance the impact
of your giving. Of course, donors can also choose to give anonymously.
How Does The Giving Back Fund Support Itself?
Like most community-oriented foundations, The Giving Back Fund depends upon the generosity of
leaders in its community. Without the support of individual donors, we would be unable to provide
service and expand our outreach into the sports and entertainment communities. We also charge an
administrative or consulting fee for some of our services.
Why Does The Giving Back Fund Charge for Its Services?
Although we are a nonprofit organization, we do have administrative costs such as staffing, office
equipment, and health insurance. The fees we charge help to offset our costs so that we can continue
to provide services to the sports and entertainment communities.
Do I have to be an athlete or entertainer to work with The Giving Back Fund?
Absolutely not. The Giving Back Fund has developed a specialty in providing philanthropic consulting to
athletes and entertainers but our services are available to anyone committed to increasing the impact of
their philanthropy.
Do I have to establish a foundation at The Giving Back Fund in order to work with The
Giving Back Fund?
No. In fact, GBF often consults to help athletes and entertainers develop customized programs with
existing charities. We are strong proponents of collaboration with other charities to reduce redundancy
and increase impact. We are currently working with several leading national children's charities to find
high-profile supporters who will help raise awareness about and funding for children's issues.
When do you recommend individuals establish their own independent foundations?
The standard philanthropic advice is that foundations established with less than one million dollars are
generally not cost effective. If for example, a foundation distributes $50,000 in grants annually but has
overhead and administrative expenses of $75,000 per year, more money is spent on overhead than on
charitable purpose.
Independent foundations are sometimes preferred by high profile individuals because there is a sense
of more control over the use of their name, likeness, and image. In fact, a good contract attorney can
protect likeness and image within any charitable vehicle.
How does The Giving Back Fund charge for its services?
We estimate our fee based on early consultations with you in which we determine the services you will
need to fulfill your charitable goals.
Is The Giving Back Fund a charity?
Yes. The Giving Back Fund is a 501(c)(3) organization. Donations to The Giving Back Fund are
tax-deductible to the fullest extent of the law.
If I donate to The Giving Back Fund, where is the money directed?
The Giving Back Fund relies on public donations to support programs we create and develop to
promote new philanthropy and encourage new giving among high-profile individuals and the public
they influence. The Giving Back Fund's goal is to multiply the value of gifts to us by creating new and/or
more effective philanthropists.
You can also choose to donate to specific foundations at The Giving Back Fund. Donations to these
foundation are restricted to benefit these foundations and their respective missions.
May I as the donor or as the donor advisor be paid from my donor advised fund for
services I provide that are related to my grant making?
No. It does not matter whether the compensation is reasonable. The prohibition is absolute according to
the Pension Protection Act of 2006. Effective on August 18, 2006, any grants, loans, compensation, and
similar payments from donor-advised funds to donors, advisors, and related parties is an excess benefit
transaction subject to the penalty taxes of Code 4958, This includes reimbursements for special events
or program related costs.
What if I am (or a family member of mine is) compensated by a grantee organization
that is a recipient of a grant from my donor advised fund?
The answer to this question is unclear. If your donor advised fund makes a restricted grant to the
grantee organization to prevent the use of the grant to pay the compensation to you or a family member,
the grant may not be an impermissible grant. However, the statute is not clear on this point.
Periodically I incur expenses such as going to conferences or purchasing supplies
related to my charitable grant making. May I submit these expenses for reimbursement
from my donor advised fund?
No, according to the Pension Protection Act of 2006 .These rules are effective August 17, 2006, so any
expenses incurred prior to that date but processed after August 17 will not be eligible for reimbursement.
If I have appointed someone not related to me to act as an advisor to the fund, are they
eligible to receive compensation for services, loans, or expense reimbursement?
No. That person is still a donor advisor, and subject to the same prohibition.
What happens if I (as either the donor or the advisor) or someone related to me
receives a benefit from a donor advised grant that I have recommended?
An excise tax penalty of 125% of the amount of the impermissible private benefit will be imposed on any
person who advised the making of such a grant. In addition, a manager of the sponsoring organization
can also be subject to an excise tax if the manager agreed to such a transaction, knowing that the
distribution would confer a more than incidental benefit on a donor, a donor advisor, or a person related
to a donor or donor advisor. The excise tax on the manager is 10% of the amount of the impermissible
benefit, but not to exceed $10,000.
Why do the sports and entertainment communities need a national nonprofit
organization focused on promoting philanthropy with their communities?
The Giving Back Fund may be a preferred option over a local community foundation if a donor will be
recommending grants in more than one city, as is often the case with professional athletes and
entertainers who split their time in multiple states. It is also a good choice given the possibility of player
trades from one team to another in a different city.
The Giving Back Fund is experienced in accommodating the unusual and sometimes unpredictable
schedules of the sports and entertainment industries. We provide services customized to the needs of
high-profile individuals.
What Services Does The Giving Back Fund provide for the sports and entertainment
communities?
The Giving Back Fund provides philanthropic consulting, management, and mentoring to the sports and
entertainment community. We serve as a trusted philanthropic advisor and provide a wide array of
philanthropic services tailored to meet the needs of our donors. The Giving Back Fund also develops
proprietary programs designed to increase effective giving among sports and entertainment
professionals--- programs such as our Fundraising Summit.
We work closely with a high-profile donor and his or her representatives to develop a philanthropy team.
Together we assess all of your resources: your personal donations, availability, corporate sponsors,
media appeal, etc. to develop customized programs that leverage your celebrity to enhance the impact
of your giving. Of course, donors can also choose to give anonymously.
How Does The Giving Back Fund Support Itself?
Like most community-oriented foundations, The Giving Back Fund depends upon the generosity of
leaders in its community. Without the support of individual donors, we would be unable to provide
service and expand our outreach into the sports and entertainment communities. We also charge an
administrative or consulting fee for some of our services.
Why Does The Giving Back Fund Charge for Its Services?
Although we are a nonprofit organization, we do have administrative costs such as staffing, office
equipment, and health insurance. The fees we charge help to offset our costs so that we can continue
to provide services to the sports and entertainment communities.
Do I have to be an athlete or entertainer to work with The Giving Back Fund?
Absolutely not. The Giving Back Fund has developed a specialty in providing philanthropic consulting to
athletes and entertainers but our services are available to anyone committed to increasing the impact of
their philanthropy.
Do I have to establish a foundation at The Giving Back Fund in order to work with The
Giving Back Fund?
No. In fact, GBF often consults to help athletes and entertainers develop customized programs with
existing charities. We are strong proponents of collaboration with other charities to reduce redundancy
and increase impact. We are currently working with several leading national children's charities to find
high-profile supporters who will help raise awareness about and funding for children's issues.
When do you recommend individuals establish their own independent foundations?
The standard philanthropic advice is that foundations established with less than one million dollars are
generally not cost effective. If for example, a foundation distributes $50,000 in grants annually but has
overhead and administrative expenses of $75,000 per year, more money is spent on overhead than on
charitable purpose.
Independent foundations are sometimes preferred by high profile individuals because there is a sense
of more control over the use of their name, likeness, and image. In fact, a good contract attorney can
protect likeness and image within any charitable vehicle.
How does The Giving Back Fund charge for its services?
We estimate our fee based on early consultations with you in which we determine the services you will
need to fulfill your charitable goals.
Is The Giving Back Fund a charity?
Yes. The Giving Back Fund is a 501(c)(3) organization. Donations to The Giving Back Fund are
tax-deductible to the fullest extent of the law.
If I donate to The Giving Back Fund, where is the money directed?
The Giving Back Fund relies on public donations to support programs we create and develop to
promote new philanthropy and encourage new giving among high-profile individuals and the public
they influence. The Giving Back Fund's goal is to multiply the value of gifts to us by creating new and/or
more effective philanthropists.
You can also choose to donate to specific foundations at The Giving Back Fund. Donations to these
foundation are restricted to benefit these foundations and their respective missions.
May I as the donor or as the donor advisor be paid from my donor advised fund for
services I provide that are related to my grant making?
No. It does not matter whether the compensation is reasonable. The prohibition is absolute according to
the Pension Protection Act of 2006. Effective on August 18, 2006, any grants, loans, compensation, and
similar payments from donor-advised funds to donors, advisors, and related parties is an excess benefit
transaction subject to the penalty taxes of Code 4958, This includes reimbursements for special events
or program related costs.
What if I am (or a family member of mine is) compensated by a grantee organization
that is a recipient of a grant from my donor advised fund?
The answer to this question is unclear. If your donor advised fund makes a restricted grant to the
grantee organization to prevent the use of the grant to pay the compensation to you or a family member,
the grant may not be an impermissible grant. However, the statute is not clear on this point.
Periodically I incur expenses such as going to conferences or purchasing supplies
related to my charitable grant making. May I submit these expenses for reimbursement
from my donor advised fund?
No, according to the Pension Protection Act of 2006 .These rules are effective August 17, 2006, so any
expenses incurred prior to that date but processed after August 17 will not be eligible for reimbursement.
If I have appointed someone not related to me to act as an advisor to the fund, are they
eligible to receive compensation for services, loans, or expense reimbursement?
No. That person is still a donor advisor, and subject to the same prohibition.
What happens if I (as either the donor or the advisor) or someone related to me
receives a benefit from a donor advised grant that I have recommended?
An excise tax penalty of 125% of the amount of the impermissible private benefit will be imposed on any
person who advised the making of such a grant. In addition, a manager of the sponsoring organization
can also be subject to an excise tax if the manager agreed to such a transaction, knowing that the
distribution would confer a more than incidental benefit on a donor, a donor advisor, or a person related
to a donor or donor advisor. The excise tax on the manager is 10% of the amount of the impermissible
benefit, but not to exceed $10,000.
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