Donor Advised Funds For Your Clients
Help your clients discover the many options where Donor Advised Funds can help them benefit in Estate Planning and Philanthropy!
Paul Lessard
President High Point Community Foundation
When Does A Donor Advised Fund Make Sense For Your Client?
Donor Advised Funds (DAF) are the perfect vehicle for “Batching.” For example, once every 3 years your donor may give $30,000 (a bundle) to their DAF. In this scenario the donors take the standard deduction during the years they are saving up to give and then itemize during the year when they donate their larger “bundle” to receive a substantial tax deduction. Once the money is in the DAF the donor may recommend distributions at their leisure.
A Community Foundation DAF handles all administrative, legal and investment work so your client does not have to. The appropriate tax documents are filed with the IRS, all the gifting work is handled as well as management and oversight of the funds. Your client’s money is invested and managed by approved investment partners.
Is your client selling a business, a home, lost a loved one or won the lottery? If so a contribution to a DAF can help address the immediate tax issues.
Contributions to a DAF are deductible and highly appreciated public stock, real estate, life insurance and more are deductible at fair market value on the date of the contribution.
With a DAF our staff will handle advisements for giving, send letters to the recipient organizations, do acknowledgement letters to folks your clients want to honor with gifts and manage a database of giving.
A DAF can be used to make gifts in perpetuity so clients can support nonprofit organizations after passing with endowed funds. By putting this in a DAF your clients are protected in case the nonprofit being supported goes out of business, the Foundation will find another organization with the same mission.
DAFs allow for multiple advisors so their children and grandchildren can participate and learn the art of giving by example.
Call Paul today to learn more today: (336) 882-3298.
Our Community Foundation And Estate Planning
In planning their giving your clients may need help in identifying charitable causes and organizations that can benefit from the assets they have accumulated during their lifetime. We can help your clients understand and select which planned giving vehicles will them to best achieve their philanthropic goals.
We can help with bequests, charitable remainder trusts, gifts of securities, real estate and life insurance, among others.
When donors intend their planned giving to have long-term future benefit, they want to be sure their original intent and purpose for the gift is protected over time. Community Foundations have systems of accountability and transparency and a Board of Directors charged with stewarding these funds. These safeguards ensure that the original intent of the fund will be honored in perpetuity.
Many donors say they are hesitant to make planned gifts out of concern for the following 3 issues: they don’t have a close connection to a charity, they are concerned the nonprofit could misspend their money, or they are concerned the nonprofit could go out of business. Community Foundations intimately know and understand the local nonprofits and can advise your clients on the effectiveness of these organizations, the strength of their Board and their long-term sustainability.
Community Foundations offer the simplicity and tax benefits of Donor Advised Funds. Those donors with a private foundation do not have to choose between a donor advised fund and a private foundation. They may maintain their private foundation and eliminate the hassle by simply having the community foundation manage the required annual distribution through a donor advised fund.