A Donor Advised Fund (DAF) is a good fit for someone who wants to make a gift to charity but does not want to create a private foundation or does not want to pick the charities that will receive the funds right now, but instead wants to both pick the charities and distribute the funds over time.
A DAF is an account that a donor establishes with the Foundation. When a donor makes contributions to the DAF, the donor gives complete control over the donated funds to the Foundation. As a result, a donor gets a current income tax deduction for the full amount of the contribution to the DAF. Despite the fact that the donor relinquishes control over the donated funds, the unique aspect of a DAF is that the donor can remain involved by making non-binding recommendations as to investment policy and DAF distributions. As a result, the donor is able to fulfill his or her philanthropic goals in a flexible, tax-favored and cost-effective way.
With a Donor Advised Fund You Can:
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Involve children and grandchildren in giving decisions
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Make regular contributions to your fund
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Receive a tax deduction for gifts to your donor advised fund
To learn more about Donor Advised Funds, contact Sue Clifton at 800.949.9988 or e-mail at sclifton@bfok.org.
Click here to read about one Foundation client's choice to create a Donor Advised Fund.