Donor-Advised Fund

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A donor-advised fund can provide you with immediate tax benefits while making your charitable giving easier for years to come. Might a donor-advised fund be right for you?  Here’s how it works.

You establish a fund at a sponsoring charity. This could be a community foundation, a public charity with a donor-advised fund program, or even one of the well-known investment companies that sponsor donor-advised funds. The minimum contribution to start a fund ranges from $5,000 to $25,000. Check with the fund sponsor. You make an initial contribution to start your fund of cash or appreciated assets such as stocks or mutual funds. You get an immediate income tax deduction. Some sponsors even let you name your fund.

Once established, you can suggest to your fund sponsor those favorite public charities you wish to receive grants from your fund, such as The Joffrey Ballet. The grants can be relatively modest or for larger projects such as a capital campaign or a new building. You do not get an additional tax deduction for these grants. You can also suggest which charities you want to have any remaining assets in your fund at your passing. the Joffrey is grateful for such gifts.

If you are considering establishing a donor-advised fund we can suggest several fund sponsors for your review. You should also consult your professional advisor for their guidance.