Gone are the days when only people with millions of dollars and names like Rockefeller, Kennedy or Gates could establish family foundations from which to spread their wealth. Now mainstream Americans with a fraction of the resources can take an active role in benefiting their communities through donor advised funds. These funds are usually created through community foundations and, increasingly, public charities.
Their purpose is to allow you a voice on how your donation will be managed and distributed, while avoiding the expense and regulation of a family foundation. The key word in a donor advised fund, however, is "advise." In order for you to enjoy all the tax benefits of a gift to a charitable organization, like the Jewish Community Foundation of Los Angeles, the gift must be "complete," meaning you relinquish control. Thus, the donor may have the privilege of making recommendations as to how the money is invested and distributed, but we make the final decisions.
Advantages to Consider
Simplicity, convenience and flexibility are key benefits of a donor advised fund. Contributors to these funds might, for example, choose from a dozen programs, ranging from affordable housing to art exhibits. This arrangement is particularly attractive for people who don't have the time to research which programs to support and who can benefit from the administrative expertise of the fund staff.
Another advantage of a donor advised fund is that you can separate the timing of your gift from your recommendations for its use. In other words, you could make a gift this year and receive the charitable deduction on your income taxes, but reserve an opinion on how your contribution will be used until sometime in the future.
By investing in a donor advised fund, you can watch your contributions grow over time and make helping others a long-term commitment.
Please contact the Development Office at 323-761-8704 or development@jewishfoundationla.org for more information.
Contact Us
We would be happy to assist you in your charitable planning. Contact our Development Office at 323-761-8704 or development@jewishfoundationla.org to learn more about options that may work for you.