Donor-Advised Funds grow in popularity. Find out why.
Donor-Advised Funds, also known as DAFs, have emerged as a popular tool for charitable giving. Several advantages of using donor-advised funds to conduct your philanthropy include:
- Favorable tax deductions. You may be able to deduct up to 60% of adjusted gross income on cash contributions and up to 30% on contributions of stock or other appreciated assets.
- Tax-free growth. Most assets contributed to a DAF can grow tax-free.
- Many assets accepted. DAFs can often accept and administer assets such as privately held stock, including C corporations, S corporations and LLCs, real estate, and other complex assets.
- Easy set-up with low cost. Because they are administered by the sponsoring organization, such as a community foundation, DAFs are easy to establish with minimal costs to you.
- Flexible grant timing. You can recommend as much or as little for grants from your DAF each year. So, you receive the deduction, but can take your time with grant decisions.
- Can provide anonymity. DAFs allow you confidentiality should you wish it. Grants can be accompanied by your fund’s name for recognition or be made anonymously.
If you have a donor-advised fund, please consider recommending a grant this year to support the work of our friars. For more information about donor-advised funds or recommending DAF grants to the Franciscan Friars of St. John the Baptist Province, contact Colleen Cushard, Co-Director, Friar Works, at firstname.lastname@example.org or (513) 721-4700.
Posted in: Estate Planning