National Christian Foundation: Offering Flexibility to Donors

Several years ago, Atlanta youth pastor Glenn Campbell had a vision: to establish a ministry in South Africa to counsel individuals and families touched by racism and the devastating effects of the AIDS epidemic. In order to realize his vision, however, Campbell needed the funds. Tapping into the Christian tradition of tithing, or giving a percentage of one’s income to a religious organization, Campbell approached several Atlanta businessmen active in local church giving about supporting the ministry financially. The group wanted to establish a fund for the project but were hesitant to set up a private foundation, which has numerous hidden costs. Instead, the group chose to work with National Christian Foundation (NCF), a nonprofit dedicated to offering counsel and giving solutions to donors. For Bobby Reagan, one of the businessmen involved in the project, the choice to work with NCF was clear: “Our group needed to set up a [nonprofit], but we wanted to avoid all the administrative hassles,” he said. “We got a lot of help from NCF and now have a very efficient vehicle to channel our giving.” 

With the motto “Smart Christian Giving,” NCF was set up in 1982 as a donor-advised fund—an alternative to direct giving — that has become an appealing option to those interested in low administrative costs, a manageable time commitment, and general ease of charitable giving. The National Philanthropic Trust labeled donor-advised funds, which allow contributors to enjoy the tax deduction and recommend charities to which their money can be channeled, one of the fastest-growing charitable vehicles. A recent Chronicle of Philanthropy survey estimated total donor-advised fund assets in the U.S. to be as high as $19.2 billion. 

Reflecting this general trend, contributions to NCF surged nearly 25 percent, to $449 million, in 2006, and the foundation’s yearend asset balance reached nearly $1 billion in the same year. As with other donor-advised funds, NCF contributors are given “advisory status” and allowed to make suggestions on where their money goes, while the foundation serves as guide and facilitator in the process. In essence, NCF is a link and intermediary between donors and its 15,000 church and ministry affiliates worldwide. Offering advice and support, as well as a plethora of giving options, NCF offers donors the flexibility and convenience that is increasingly in demand. It gives Christian contributors a way of fulfilling their religious giving aspirations while also getting a tax deduction.

Donor-advised funds also offer the possibility of innovative approaches to raising funds for a particular cause. In the aftermath of the 2004 tsunami in Indonesia, Foster Friess, founder of Brandywine Funds, set up a fund with NCF called “Friends of Foster” to aid reconstruction efforts. The fund, established as an NCF Giving Fund in 2005, matches donations dollar for dollar and is targeted at helping the Sri Lankan city of Galle. Motivated by a personal tie to Galle—his daughter-in-law is from there—Friess became further interested after a visit to the devastated areas. “To look into the eyes of a mother with three young children clinging to her skirt while they stand on the 20-by-20 foot concrete pad, which is all that remained of her home, was life changing,” reflected Friess. To ensure that money was being used in the most efficient manner, Friess himself visited Foster. Friess’s donor-advised fund through National Christian Foundation  provides aid for schoolchildren in Galle, Sri Lanka. Galle and handpicked his projects and ministries. In this way, he has maintained some control over the stewards of his money and the causes which it funds. 

The stories of Foster Friess and pastor Glenn Campbell are representative of an emerging trend among private donors— that is, managed charitable giving. National Christian Foundation, and donor advised fund foundations like it, are expanding, reflecting a growing interest in this new giving vehicle. In pursuit of achieving their charitable goals, more and more donors are choosing to relinquish some control over their money in exchange for the convenience, flexibility and expert guidance of managed giving. -- Taylor Bolz