Donor Advised Funds
Another tool we use
to achieve your legacy building objective is to help you invest in a
donor-advised fund. Donor-Achieved Funds (DAF's) are
administered through a public charity that pools your contributions with other
donors' contributions. The public charity invests the contributions and makes
grants to charitable organizations upon the recommendations of the donors.
As a donor to the fund, you make irrevocable contributions to a public charity,
enabling you to receive an immediate federal income tax deduction for the entire
contribution and enjoy the associated tax benefits that same year. At anytime
thereafter, you can recommend grants to charitable organizations of your choice
- this year, next year, even beyond your lifetime. And, because the money in
your account is invested until you wish to recommend grants, the total amount of
money in your account could potentially grow tax free, ultimately increasing the
size of your grants.
There are other advantages as well. For example, the year-end pressure to select
a charity and make a contribution in eliminated. You also don't face any of the
administrative responsibilities that many other forms of charitable giving
entail, such as annual IRS filings an taxes.
Advantages
to DAF's
- Immediate Tax
Deduction- Your contributions to the fund are fully tax deductible in
the year
they're made.
- Donate Securities Tax Free-
When you contribute appreciated securities to the
fund, you may immediately
deduct their full fair market value from your taxes- without
incurring any capital
gains liability.
- Create a Legacy of Giving-
You may name account advisors who will have the
ability to recommend
grants from your account. You also have the ability to select
successors.
- Seperate Tax Planning and
Charitable Decisions- Immediate tax advantages
through contributions can
be achieved now and grants can be recommended to
charities later.
- Enjoy Confidentiality-
If you prefer, your grant(s) can be made anonymously, so that
your name and personal
information will not be known.
