Donor advised funds, one of the fastest growing segments of philanthropy, offer many of the advantages of a private foundation without all the costs and administrative requirements. As the name indicates, the donor can provide advice on which charitable groups receive gifts from the fund. And the tax benefits are generous.
You can establish a donor advised fund with an irrevocable contribution-usually stocks, bonds, cash or mutual fund shares-to a community foundation or charitable organization that provides grants to other tax-exempt public charitable organizations. You may name yourself or others as advisors to the fund, and your children as successor advisors.
Advice Accepted
Your contribution will be invested and the charity will accept nonbinding advice on how and when money from your account is disbursed. Donor-advised funds are generally permanent endowment funds, with a percentage of the fund used each year. If you wish, the fund can be set up to spend some or all of the principal, as well.
Though similar to a private foundation, a donor advised fund is often preferred by donors because there are no set-up fees, the charity annual filing and compliance requirements, and there are no excise taxes.
Tax Benefits
You receive current income tax and gift tax charitable deductions for your contributions to the fund, and a higher percentage of your adjusted gross income may be deducted for income tax purposes than with gifts to a private foundation. If you contribute appreciated assets to the fund, you may be able to avoid capital gains taxes.
At the end of the donor-advising period, the remaining principal may be used to benefit us. A tax advisor can help you determine if a donor advised fund will meet your financial and philanthropic needs.
Please contact 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.