Top 10 Reasons to Establish a Donor Advised Fund
Donor Advised Funds (DAF) continue to be the fastest-growing giving vehicle in the nation. Here’s some of the reasons why donors should consider using a DAF for their 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 CFHZ’s online portal, Donor View.
- Local expertise. 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 is no minimum balance to start a DAF at CFHZ 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 DAF, you may choose to automate your recurring giving by scheduling grants monthly, quarterly, or annually.
- “Bunching” is easier. Bunching (aka bundling) gifts allows you to contribute multiple years’ worth of charitable giving to a DAF 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 at the regular cadence of your choosing.
- 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. DAFs also offer flexibility when unique tax events arise. For example, an individual who sells a company can easily establish a DAF to help maximize immediate tax benefits, and then recommend grants in the years ahead.
- Give Anonymously. When you give through your DAF, you may choose to remain anonymous on all or select grants.
- Leave a legacy for your community. You can utilize a DAF 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/donor-advised-funds/ or contact Colleen Hill, Vice President of Development and Donor Services at chill@cfhz.org or 616-994-8853.
