Administrative Fees
It Matters Where Your Donor-Advised Fund is Managed
All donor-advised funds (DAFs) are not created equal. Unlike DAFs managed by commercial investment firms, only a community foundation can ensure that your administrative fees directly support transformational work in your own backyard.
At the Community Foundation of Greater Birmingham, your philanthropic dollars work harder — with the grants you recommend and also by the administrative fees that get reinvested right here in Birmingham to support the Community Foundation’s strategic initiatives.
Community Impact
Your fees support the Community Foundation as we execute strategies aimed at amplifying impact throughout our community.
Investment Performance
Pooled with $400M+ in Foundation assets, your fund gains institutional-grade investments, scale efficiencies, and professional stewardship reserved for the largest portfolios.
Personalized Service
You get access to our team of local experts who can help you make the greatest impact with your giving.
“At the Community Foundation, the fee I pay isn’t just an administrative cost, it’s another gift to the community that supports their wonderful work. You don’t get that anywhere else. It’s one of the reasons I’m glad my fund lives here.”
M’Kayl Lewis
Donor Advised Fundholder
What Makes a Community Foundation Donor Advised Fund Unique
When you establish a donor-advised fund at the Community Foundation of Greater Birmingham, you’re not just opening an account, you’re joining a movement to create a region where everyone can reach their full potential. Here’s what sets us apart:
You Support Community Leadership
Through your DAF at the Community Foundation, you’re supporting the research, convening, and leadership work that strengthens Birmingham itself. From addressing our region’s fragmentation to advancing economic development and tackling long-term problems, you’re helping achieve community-wide progress.
Competitive Returns with Values Alignment
Your fund earns competitive, institutional-grade returns, and is responsibly stewarded by an organization whose sole mission is the betterment of this region.
Deep Local Knowledge and Expertise
More than 3,000 grants flow through the Foundation each year to nonprofits large and small. That sheer volume creates ummatched community intelligence, allowing us to provide guidance on supporting the causes you care about most. With real-time visibility into organizations doing the work, we know the gaps that need filling and where philanthropy can move the needle.
A Question Worth Asking
If you have a donor-advised fund at a commercial provider or elsewhere, ask yourself: Where do my fees go? Are they supporting shareholder profits at a commercial bank? Funding operations in another city? Or are they staying right here in Greater Birmingham?
The Community Foundation Advantage
Where Fees Go
At Our Community Foundation: Support local community initiatives and leadership
At Commercial Providers: Corporate profits or operations elsewhere
Personalized Service
At Our Community Foundation: Experts who know your local nonprofit community
At Commercial Providers: Often a call center or an out-of-town advisor
Grantmaking Expertise
At Our Community Foundation: Deep knowledge of local nonprofits and impact
At Commercial Providers: Limited local nonprofit knowledge
Community Impact Beyond Grants
At Our Community Foundation: Leading transformational regional initiatives
At Commercial Providers: Typically none, highly transactional
Investment Performance
At Our Community Foundation: Competitive returns with responsible stewardship
At Commercial Providers: Varies by provider
Administrative Fee Policy for Component Funds
The Community Foundation charges no setup fees or out-of-pocket expenses to establish a component fund. Administrative fees are calculated based on a fund’s average daily balance on an annual basis, and fees are assessed to the fund at the beginning of each year. Donors wishing to establish a pass-through fund at the Community Foundation will be charged a fee of 2% of all contributions to the fund (to be paid on an appropriate schedule determined in consultation with the donor).
In all cases, the minimum administrative fee charged to each individual fund will be $250. Investment management fees are also deducted from each individual fund at various times of the year. Investment management and custodial fees, while they may vary, usually average between 0.10 – 0.60% of the fund’s value.
Approved by the Board of Directors on Aug. 21, 2025, the administrative fee schedule for each individual type of fund is as follows:
