Don’t Miss Out on A Great 2023 Tax Benefit: A Flexible Giving Solution for Tomorrow's Charitable Impact

Terri Spath |

A Donor-Advised Fund (DAF) is a unique philanthropic tool designed to streamline and maximize the impact of your charitable contributions. Functioning as a charitable investment account, a DAF allows you to support organizations that align with your values in a tax-efficient manner. By contributing cash, securities, or various assets to a DAF, you become eligible for an immediate tax deduction. The contributed funds can then be strategically invested for tax-free growth, providing you with the opportunity to increase your giving potential.

The appeal of DAFs lies in their simplicity and tax advantages, making them the fastest-growing charitable giving vehicle in the United States. Let's delve into the key benefits that make a DAF an attractive option for individuals looking to make a difference.

1. Tax-Deductible Donation: GIVE

Establishing a DAF account is a straightforward process, and we are here to guide you through it. Whether you contribute cash, stocks, or other diverse assets, you gain eligibility for an immediate tax deduction. It's important to note that contributions to a DAF cannot be returned to the donor or used for any purpose other than facilitating charitable grants.

2. Tax-Free Growth: GROW

As you contemplate which charities to support, your donated funds are invested for tax-free growth. This ensures that your donation has the potential to grow over time, providing you with even more resources for future giving. Our expertise can assist in managing and growing your assets while safeguarding them for optimal results.

3. Supporting Charities: GRANT

One of the distinctive features of a DAF is the flexibility it offers in supporting charities. You have the freedom to recommend grants to virtually any IRS-qualified public charity, ranging from local shelters to educational institutions or religious organizations. The beauty of a DAF lies in its adaptability, allowing you to support charities you love at a pace that suits your comfort level.

Additional Advantages of a Donor-Advised Fund:

Grant Recommendations: Tailor your giving by recommending grants to IRS-qualified public charities from your DAF.

Anonymous or Acknowledged Grants: Choose whether to make anonymous grants or provide grant acknowledgment contact information with your recommendations.

Specific Grant Purposes: Specify a particular use, campaign, or purpose for your grant recommendation, attaching a special purpose to your grants.

Memorial or Honorary Grants: Make grant recommendations "in honor of" or "in memory of" a loved one, personalizing your contributions.

In summary, a Donor-Advised Fund not only offers an immediate tax benefit but also empowers you to grow your charitable contributions strategically and support the causes you care about in a flexible and personalized manner. Explore the advantages of a DAF and elevate the impact of your philanthropy today.