What are Charitable Savings Accounts?

ABC Charitable Savings Accounts are a personal, private, organized, and direct way to give. Think of your account as an on-demand, online "charitable checking account," but without the paper (and without the paperwork).

ABC Charitable Savings Accounts allow a contributor to make a tax-deductible gift to a charitable organization and then recommend how the gift shall be used, usually as a distribution to another charity or charitable program. Thus, the donor receives almost all of the advantages of having his or her own private charitable foundation (that is, the ability to centralize giving in one place, and to time giving to maximize tax benefits without being rushed to recommend the gift beneficiaries) without the ongoing expense, complexity, and privacy-invading reporting requirements associated with private foundations.

Nomination Rules

When you make a nominated distribution from your savings account ABC performs a records check to insure the grantee is an organization to which tax-deductible gifts may be made and that the nomination is in compliance with ABC and IRS policies. If so, ABC then transmits the distribution to the organization along with a cover letter notifying the organization of the gift in the name of your fund, and including any special message or instructions you wish to be forwarded.

Distributions from your CSA must be in conformance with U.S. tax laws and IRS regulations regarding charitable giving and are subject to ABC policies and oversight. These are the general rules:

1. Generally, you may nominate any charity, church, or school to which tax deductible gifts may be lawfully made. However, ABC will not accept nominations for organizations that, in ABC’s judgement, promote hate, discrimination, pornography, or other non-eleemosynary activities.

2. If the nominated organization is a public benefit charity, it has to be registered with the IRS. You can't give to a foreign charity or one not registered with the IRS.

3. You can't give in a way that confers a benefit to you or your family. For example, you can't nominate a gift to your child's school that goes to pay your child's tuition. But you can nominate a gift to fund scholarships for deserving students selected by the school.

4. You must make nominations for at least five percent of your account balance in any one year. If you do not make nominations in the current year totaling at least 5% of your account balance on December 31st of the PREVIOUS year, the difference between your nominations during the current year and 5% of your balance as of December 31st of the previous year will automatically be deducted from your account and designated as a nomination to America's Best Charities.

5. If an individual savings account has dropped below a $250 balance AND, in addition, there has been no activity in that account (i.e. no additional contribution to the account or no nomination from the account) for one year, then the account balance will be remitted to ABC for charitable distribution at the end of that year.)

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Private, Confidential Giving Your nominations are confidential. Charitable Savings Accounts have no public reporting requirement. ABC does not share, sell, or otherwise release any donor information except that which the donor has released to a nominated charity, church, or school. You may remain anonymous if you wish. Make Gifts at Any Time You may make gift nominations at any time.

Gifts Are Direct, in Your Name Gifts are sent in your fund's name directly to the charities. All Administration Is Done For You All the necessary record-keeping is provided for you. You can review your account status at any time. At the end of the year you can print an annual statement for income tax documentation.