Donor Advised Funds

Donor Advised Funds are a simple and efficient way to make gift to charity at death.  Cash or non-cash assets are deposited into a fund that can grow in value and is granted out to charities over time at donor’s discretion.  The donor receives an immediate charitable income tax deduction thereby making the gift irrevocable.

who does it work for?

  • Donors who will incur capital gains tax on sale of appreciated assets
  • Donors whose estate will be subject to estate tax
  • Donors who want to benefit charity during their lifetime and after death
  • Donors who want to involve their family in philanthropy

how does it work?

  • After DAF is funded, donor recommends grants to favorite charities
  • DAF then makes grants to charities recommended by donor
  • Donors can make grants immediately or delay their giving to future date(s)
  • Donors can set up recurring grants

benefits of a daf to a donor

  1. Can use both cash and non-cash assets
  2. Reduced tax costs: avoid capital gains tax on sale of appreciated assets and receive immediate charitable income tax deduction equal to fair market value of property.
  3. Gives the donor time to decide when and where to direct gifts.
  4. Investment Flexibility: assets can be invested in wide range of investment options.
  5. Charitable Impact and Legacy: powerful tool for establishing a legacy of giving – heirs and loved ones can be part of the process of distributing grants to charity during donor’s lifetime, and can be named successor grant advisors after donor’s death thereby allowing DAF to last beyond single lifetime and for generations to come.

typical assets used to fund a daf

  1. Cash
  2. Stocks
  3. Mutual Funds
  4. Real Estate
  5. Closely-held businesses
  6. IRAs
  7. Bequests/Trust Interests

 

For more information, please contact Dean Regenovich, Director of Charitable Estate Planning, at 800-780-3463 or [email protected]