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Philanthropy
Philanthropy
Investor Services Donor-advised Fund
Donor-advised Funds
A donor-advised fund is a fund that allows donors to recommend charitable grants and the initial investments for fund contributions. Donor-advised funds may offer investors significant potential tax advantages, as well as lower costs and less administration than other types of charitable giving vehicles.
Morgan Stanley Smith Barney Global Impact Funding Trust (GIFT)
Morgan Stanley Smith Barney GIFT is a donor-advised fund open to individuals, families, groups of friends, partnerships, corporations, trusts and estates. In return for an irrevocable and nonrefundable contribution, the donor may receive numerous tax benefits and the right to advise Morgan Stanley Smith Barney GIFT's administrator as to which charities should receive grants. Log in to your Morgan Stanley Smith Barney GIFT account.
Potential Benefits of the Fund
As a donor to Morgan Stanley Smith Barney GIFT, you make an irrevocable initial contribution of at least $25,000 to the Fund ($5,000 for any additional contributions). You may realize numerous benefits as a result of your contribution, including:
- Tax Benefits: You may qualify for an immediate federal income tax deduction and may avoid capital gains tax through the donation of most long-term appreciated securities to Morgan Stanley Smith Barney GIFT.1
- Low Costs: Morgan Stanley Smith Barney GIFT has no start-up costs and low administration expenses compared to some other types of charitable giving vehicles.
- Grant Recommendations: While the potential income tax deduction is taken immediately, donors can recommend grants to their favorite charities throughout the life of the account. Grants must be made in amounts of at least $250.
- Investment Options: With the assistance of your Financial Advisor, you can recommend that your contributions be invested in portfolios professionally managed by Consulting Group. Any investment appreciation that occurs in the account could increase the value of the charitable grants from your account.
- Tax-free growth: Assets grow tax-free within donor-advised fund accounts, providing the potential for greater charitable grants from your account. You may contribute cash, publicly traded stock, restricted stock and closely held stock to Morgan Stanley Smith Barney GIFT.
- Create a Legacy: You have the ability to name any relative or other individuals as successors to Morgan Stanley Smith Barney GIFT, enabling you to continue your tradition of giving.
- Recognition or Anonymity: You can choose whether or not to be recognized for the charitable grants from your donor-advised account.
- Account Services: You receive quarterly statements by mail and can view accounts and recommend grants online.
1 Individuals whose adjusted gross income exceeds $150,500 in 2006 may be subject to an income tax deduction limitation. (This adjusted gross income amount is indexed for inflation and may be increased in later years.)
Grant-Making
By donating to Morgan Stanley Smith Barney GIFT, you can recommend grants to qualified domestic charities. Once your grant request is approved, Morgan Stanley Smith Barney GIFT will redeem units from your account and send the proceeds to the recommended organization, along with a letter acknowledging you as the donor (unless you request anonymity).
You can recommend grants online, or by directing your Financial Advisor to do so on your behalf. Keep in mind that you can contribute to Morgan Stanley Smith Barney GIFT now and make grants later. Donors to Morgan Stanley Smith Barney GIFT have access to a database of qualified nonprofit organizations in the U.S., which they can use to identify the missions of various charities and get information on how to make grants to them.
All grant recommendations will be reviewed by the Board of Directors of Morgan Stanley Smith Barney GIFT, Inc. and staff designated by the Board. Each recipient organization recommended will be subject to Morgan Stanley Smith Barney GIFT, Inc.'s review of the organization's tax-exempt status as defined by Section 501(c)(3) of the Internal Revenue Code, and its status as a public charity as defined by Section 509(a)(1), (2), or (3). If a grant recommendation does not receive approval, Morgan Stanley Smith Barney GIFT will notify the donor-advisor and ask for an alternative grant recommendation.
Consulting Group UMA Select Pools
- Consulting Group UMA Select Aggressive Pool: Seeks to provide growth of capital through a target asset allocation of 2% cash and 98% equities. This Pool invests US Large Cap Value (25%), US Large Cap Growth (25%), US Mid Caps (12%), US Small Caps (6%), International Equity (20%), Emerging Markets (10%) and cash (2%).
- Consulting Group UMA Select Growth Pool: Seeks to provide growth of capital and modest current income through a target asset allocation of 75% equities and 25% Bonds. This Pool invests in cash (2%), US Bonds(18%), Non-US Bonds (5%), US large Cap Value (19%), US Large Cap Growth (19%), US Mid Caps, (8%), US Small Caps (6%), International Equity (15%) and Emerging Markets (8%).
- Consulting Group UMA Select Balanced Pool: Seeks to provide a combination of growth of capital and current income through a target asset allocation of 50% Bonds and 50% Equities income. This Pool invests in cash (2%), US Bonds (33%), Non-US Bonds (10%), High Yield Bonds (5%), US Large Cap Value (12%), US Large Cap Growth (12%), US Mid Caps (6%), US Small Caps (6%), International Equity, (9%), Emerging Markets (5%).
- Consulting Group UMA Select Conservative Pool: Seeks current income and modest capital appreciation through a targeted asset allocation of 75% bonds and 25% Equities. This pool invests in cash (2%), Short Duration Bonds (13%), US bonds (42%), Non-US Bonds (12%), High Yield Bonds (6%), US Large Cap Value (9%), US Large Cap Growth ((9%), International Equity (7%).
- Money Market which is invested in Western Assets Institutional Cash Money
Investment Expenses
- For the Aggressive Pool, investment management fees and expenses are expected to be approximately 0.43% per year.
- For the Growth Pool, investment management fees and expenses are expected to be approximately 0.44% per year.
- For the Balanced Pool, investment management fees and expenses are expected to be 0.46% per year.
- For the Conservative Pool, investment management fees and expenses are expected to be 0.40% per year.
- For the Money Market Poll, investment management fees and expenses are expected to be 0.20% per year.
How to Open a Morgan Stanley Smith Barney GIFT Account
You can open an account with Morgan Stanley Smith Barney GIFT by completing a Donor Contribution Agreement and returning it to your Financial Advisor. Please read the Donor Circular & Disclosure Statement before contributing to Morgan Stanley Smith Barney GIFT. It provides more complete information on Morgan Stanley Smith Barney GIFT, including a description of the risks, fees and expenses associated with a contribution to Morgan Stanley Smith Barney GIFT.
Morgan Stanley Smith Barney GIFT is a public charity established to support and increase philanthropy. Morgan Stanley Smith Barney GIFT is a 501(c)(3) nonprofit corporation (federal EIN 52-7082731). As the administrator of Morgan Stanley Smith Barney GIFT, Morgan Stanley Smith Barney GIFT receives all contributions to Morgan Stanley Smith Barney GIFT, approves all grant recommendations and is responsible for distributing grants to qualified nonprofit organizations. Morgan Stanley Smith Barney and its subsidiaries may provide certain investment management, administration and other services to Morgan Stanley Smith Barney GIFT, Inc.'s programs through service agreements, but Morgan Stanley Smith Barney GIFT is an independent corporation governed by a Board of Directors with a majority of independent directors.
While we believe Morgan Stanley Smith Barney GIFT represents a valuable philanthropic opportunity, Morgan Stanley Smith Barney GIFT may not be appropriate for everyone. Please see the Donor Circular and Disclosure Statement for more complete information on Morgan Stanley Smith Barney GIFT, including a description of the risks, fees and expenses associated with a contribution to Morgan Stanley Smith Barney GIFT. Please read it carefully before contributing.
Morgan Stanley Smith Barney, LLC, its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
For more information, please contact your Financial Advisor.