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Donor Advised Fund

Are you looking for a way to get the most out of your philanthropy both now and in the future? Would you like to simplify your annual and lifetime charitable giving?

A donor advised fund (or DAF) might be a great solution for you. You can also use a DAF to distribute gifts to any qualified 501(c)(3) charitable organization or synagogue. With a DAF, you can make gifts to charity during your lifetime, and when you pass away, your children can carry on your legacy of giving.

Benefits of a donor advised fund

• Establish a flexible vehicle for annual charitable giving
• Benefit from a more tax- and cost-efficient alternative to a private foundation
• Receive an estate tax deduction and savings from your gift
• Obtain a charitable income tax deduction in the year of your gift

How a donor advised fund works

1. You make an initial, irrevocable gift of cash or stock to fund a DAF at Jewish Community Foundation, Inc..
2. The assets in your DAF grow tax-free.
3. You make annual recommendations on gifts to be made from your DAF to support your preferred charitable causes, Jewish or secular.
4. When you pass away, your children or designated beneficiaries may recommend charitable gifts from your DAF.

More on donor advised funds

A donor advised fund offers many important benefits:

• When compared to a private foundation DAFs offer many advantages, including:
  • No out-of-pocket costs are incurred by the donor
  • Minimal administrative responsibilities by the donor
  • Maintaining confidentiality for your fund's' value, your contact information, and where you recommend grants
  • Anonymity for your fund and for your grants, if you so desire
  • Streamlined rules, including no distribution requirements or certain excise taxes
• The start-up time is minimal for DAFs, just contact us and we will coordinate an agreement and set you up with an account.
• Gifts to DAFs are generally deductible at fair market value and count in the year that you make them for tax purposes.
• JCF welcomes DAF donors to "start small" and open a fund with a low suggested minimum contribution of $2,500, and a minimum of $100 to recommend a grant distribution at any future time.
• Many donors contribute to their DAFs at year-end to gain immediate tax benefits, such as by donating appreciated stocks or bonds, and then recommend grants in the short- or long-term future.
• Your fund is professionally-invested in one of four portfolio options that you can choose from, enabling your fund to potentially grow tax-free over time and allow you to provide more dollars in grants.
• You may also choose to "bunch" your gifts into a DAF to be able to itemize your tax deductions in one calendar year, and then spread out the grant recommendations in subsequent years.
• JCF staff is available for you to consult with to discuss granting opportunities in the community.

Contact us

If you have any questions about donor advised funds, please contact us. We would be happy to assist you and answer any questions you might have.