DONOR-ADVISED FUNDS

THE BENEFITS OF A PRIVATE FOUNDATION.
THE FLEXIBILITY OF A CHARITABLE FUND.

Donor-advised funds (DAF) maximize gifts by allowing the donor to take an immediate tax deduction, avoid capital gains taxes while investing the fund for future distribution. Although the gift is irrevocable, the opportunity to recommend gifts to nonprofits or churches from a DAF remains with the donor.

To establish a DAF, simply complete the agreement form and make a $5,000 minimum contribution. Additional contributions can be added during your lifetime and at your passing. Your gifts may qualify for an immediate tax deduction, subject to IRS regulations.

Why establish a Donor-Advised Fund?

Consistent giving can flow through your fund without the administrative requirements of a private foundation. A loved one may also be memorialized with an ongoing giving instrument that gives to charity annually and, depending on the distribution levels, in perpetuity. All disbursals are verified for legitimacy of each church, ministry and organization recommended to receive a gift. In addition, a successor may be named at the donor’s incapacity or death, creating a stewardship legacy for your heirs.

By completing the appropriate documents, a fund may be designated as a testamentary account. Upon your death, the DAF would disburse annual gifts consistent with your recommendations. In a will, a DAF may be named as the beneficiary of an estate to enhance the influence of the fund.

How is the reporting of the fund handled?

Each fund receives a regular statement that outlines the investment and disbursal activity in the fund.

Are there minimums and maximums associated with a DAF distribution?

Yes. Each recommendation for distribution must be at least $250. In addition, each account is required to make one annual recommendation in order to fulfill the charitable purpose of the fund. Finally, the maximum disbursal is the market value of the fund. If desired, the donor may recommend the entire fund be distributed to charity.

Benefits

  • Immediate tax deduction
  • Donor-directed distribution
  • Simplified tax reporting
  • Flexibility to change donor charities and amount over time

WANT US TO HELP YOU MEET YOUR CHARITABLE GIVING GOALS?

DONOR STORIES: DONOR-ADVISED FUNDS

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