Donor Advised Fund
A donor advised fund (or DAF) might be a great solution for you. You can use a DAF to distribute gifts to numerous charities. With a DAF, you can make gifts to charity during your lifetime, and when you pass away, your children can carry on your legacy of giving.
You enjoy several benefits with your donor advised fund
- Establish a flexible vehicle for annual charitable giving
- Benefit from a more tax and cost efficient alternative to a private foundation
- Obtain a charitable income tax deduction in the year of your gift
How a donor advised fund works
- You make an initial, irrevocable gift of cash or stock to fund a DAF at CommunityGiving or one of our partner community foundations
- The assets in your DAF grow tax-free
- You make annual recommendations on gifts to be made from your DAF
Gifts from your donor advised fund
Your donor advised fund has several advantages. You can make one larger gift to a DAF and then recommend grants to the charitable organizations and causes you care about most. Initial and subsequent contributions to a DAF can be made by check, via credit card or in publicly traded securities-as well as other property including closely held stock, real estate and other assets. Gifts to donor advised funds are generally tax deductible at the time of contribution, but all donors are encouraged to consult with their professional advisor about their individual situation.
Donor Advised Fund vs Private Foundation
A donor advised fund has several advantages when compared to a private foundation. The start-up time and cost are minimal for DAFs, and gifts to DAFs are generally deductible at fair market value. A DAF is also not subject to the distribution requirements and certain excise taxes faced by private foundations.
If you have any questions about donor advised funds, please contact us. We would be happy to assist you and answer any questions you might have.
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