There’s lots of buzz about Donor Advised Funds (DAFs). They are a charitable planning technique that offers flexibility to your library foundation gifting.
Here’s the low-down on DAFs:
- Contribute funds or in-kind assets now to a charitable entity that manages DAFs. There are a number of local and national entities that manage DAFs. Our Library Foundation team can recommend an appropriate entity to you.
- Receive an immediate tax deduction when you irrevocably contribute to the DAF (as much as 60% of your adjusted gross income)!
- Then, over time, you decide how much to gift out of the DAF to the charity of your choice (like The Library Foundation).
- You can gift frequently (like monthly) or annually, or not at all for some number of years.
- If you delay gifting, you may be able to choose an investment profile, enabling your DAF to grow significantly over time (some entities do not allow this option).
- Even after your death your fund continues. You can identify charities to receive the gifts into perpetuity, or may be able to name a survivor to make the gifting decisions after you die.
- DAFs cost a lot less than a private foundation and are available to the average American.
A DAF is just one charitable gifting tool. Call us to talk about whether a donor advised fund might be right for you. Our friends at CoreFirst Bank & Trust can also offer expertise as you consider the best charitable gifting technique for your unique situation.
The National Philanthropic Trust has an easy to understand video about how this type of giving works - https://vimeo.com/275652705
