How it works
TCF is a registered charity, acting as an administration umbrella for clients to hold their own personal charitable funds. The client’s Donor Advised Fund is effectively their own charitable trust, but without the burden of administration or level of costs associated with having a stand-alone charity.
Having your own DAF separates the securing of tax relief from the moment of philanthropy. It allows clients to make donations to any registered UK Charity either anonymously or publicly from their named Foundation.
Funds can be distributed within the timeframe of the client’s choosing. The Foundation can also be shared with members of the family and also be passed on outside of inheritance tax
assessment to a named successor.
TCF – Using financial planning to enhance philanthropic impact
A DAF can have a wide range of assets donated into it, not only cash. Unlike other DAFs, a distinguishing feature of the TCF is that the individual account holder can continue to grow their assets tax efficiently, as long as they comply with HMRC guidance, and have them still managed by their trusted financial planner rather than a third party.
What does it cost my client?
A DAF is a very cost-effective way for an individual to have effectively their own charitable trust without the expense of setting up their own charity and ongoing regulatory costs. The fees charged by TCF are competitive as TCF does not have some of the overhead costs compared to other DAFs. Via TCF you will be working with and advising your client, not delegating to a third party.
|Balances up to £500,000||0.70% per annum|
|Balances between to £500,001 and £800,000||0.60% per annum|
|Balances between to £800,001 and £1,500,000||0.45% per annum|
|Balances between to £1,500,001 and £3,000,000||0.30% per annum|
|Balances over £3,000,000||0.20% per annum|
Making grants to charities
Once a TCF account is open a client can immediately make donations to charities. This works by the Client advising the TCF administrator, the amount they wish to give, and whether the donation is in their name or anonymous. Once the TCF staff have undertaken the due diligence that the charity is registered with one of the UK Charity Commissions and there are no adverse issues then the payment will be made to the charity.