Top 10 reasons to establish a Donor Advised Fund
Get the most out of your charitable contributions with a Donor Advised Fund, the fastest-growing giving method in the nation. The reasons Donor Advised Funds are so popular are numerous and growing. Here are our top 10 reasons why you should consider using a Donor Advised Fund for your own charitable giving.
- Easy to establish and use. It takes only a few minutes to open a fund, and you can add to your fund and recommend grants at any time through our online portal, Donor View.
- Local expertise. With a Donor Advised Fund, you have access to the expertise of the Community Foundation’s professional staff, who also do all the work in administering the grants for you!
- No minimum balance. There no minimum balance to start a Donor Advised Fund and no minimum balance to maintain within the fund.
- You may give a wide variety of assets. The Community Foundation accepts all types of gifts and almost any kind of asset, including cash, appreciated stock, real estate and more. Plus, you leverage tax deductions and eliminate Capital Gains Taxes when gifting appreciated assets.
- Automate your Charitable Giving. When you give through a Donor Advised Fund, you may choose to automate your recurring giving by scheduling grants monthly, quarterly or annually.
- “Bunching” is easier. With the recent changes to the federal income tax law, “bunching” allows you to contribute multiple years’ worth of charitable giving to a Donor Advised Fund in a single year and receive an immediate tax deduction to surpass the itemization threshold while continuing to give to the nonprofit organizations you care about.
- Engage multiple generations in giving. Name your children or grandchildren as advisors to the fund and make giving decisions together as a family, passing on your values and philanthropy to future generations.
- Flexible timing for recommending grants. Make a gift today and then recommend grants over time. Donor Advised Funds also offer flexibility when unique tax events arise. For example, an individual who sells a company can easily establish a Donor Advised Fund to help maximize immediate tax benefits, and then recommend grants in the years ahead.
- Give Anonymously. When you give through your Donor Advised Fund, you may choose to remain anonymous on all or select grants.
- Leave a legacy for your community. You can utilize a Donor Advised Fund in much the same way you’d use a family-run foundation. You establish and name the fund, and may invite family members to contribute. Engage multiple generations of giving by directing another family member to manage your family’s fund as your successor.
To learn more about how Donor Advised Funds can simplify your giving and increase your impact, visit www.cfhz.org/daf or contact Colleen Hill, Vice President of Development and Donor Services at firstname.lastname@example.org