Give from Your Donor Advised Funds

A donor advised fund (DAF) is a type of giving program administered by a third party that allows you to combine the most favorable tax benefits with the flexibility to easily support your favorite charities. It is created for the purpose of managing charitable donations on behalf of an organization, family or individual. An increasingly popular charitable vehicle, DAFs are an excellent way to both simplify your charitable giving and facilitate your strategic philanthropic goals. DAFs allow donors to give cash, stock and other assets where the donor receives an immediate tax deduction when the contribution is made, but can grant specified amounts to the charities of their choice at a later time.

1. Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program
2. Advise the investment allocation of the donated assets (any investment growth is tax-free)
3. Recommend grants to qualified public charities of your choice

Donor-advised funds provide a number of benefits that direct donations to a charity may not, including:

• Simplicity – The DAF sponsor handles all record-keeping, disbursements, and tax receipts Flexibility – Timing of your tax deduction can be separate from your charitable decision making
• Tax-efficiency– Contributions are tax-deductible and any investment growth in the DAF is tax-free. It is also easy to donate long term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock
• Family legacy – A DAF is a powerful way to build or continue a tradition of family philanthropy
• No start-up costs – There is no cost to establish a donor advised fund. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more)**
• No transaction fees – Once approved, 100% of your recommended grant goes to your qualified public charity of choice**
• Privacy if desired – Donors may choose to remain anonymous to the grant recipient

** Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.

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