After stepping down from the board of the Community Foundation of Greater Birmingham, a family business owner wanted to remain an active supporter of its mission. His business had always handled charitable giving independently, but he wanted a more efficient and impactful approach.

“I realized we could establish a corporate advised fund (CAF) with the Community Foundation,” he explained. “We could consolidate our giving, simplify the process, and let the foundation handle disbursements.”

Using appreciated stock with long-term gains to seed the fund, his company avoided the complexity of gifting stock to individual charities.

“Instead of multiple transactions, we transferred the stock to the Community Foundation once. Now I can direct gifts with a simple email or through their online portal,” he said. “It’s seamless.”

The CAF also created additional benefits. The Foundation collects a small fee for managing the fund, which helps sustain its mission.

“It’s a way to support the Foundation itself, in addition to our other charitable causes.”

The structure of the CAF was especially appealing.

“It makes charitable giving more intentional,” he explained. “Instead of reactive decisions, you’re planning strategically. Even if we don’t know how we’ll use the funds immediately, we’re prepared to make a meaningful impact when the time comes.”

For those considering a CAF, he advised consulting a CPA or attorney.

“It’s a great tool for businesses that want to simplify their giving while making it more purposeful.”

The relationships with Foundation staff have proved invaluable as well.

“They’ve been an amazing resource, offering guidance and expertise. For us, this has been a meaningful way to support the community while streamlining our efforts.”

To learn more, contact a member of our Giving Staff.