Donor Advised Funds (DAF) – What you need to know

by Jan 12, 2021Blog, Donations0 comments

Donor-advised funds (DAF) are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to charity.

 

What is a Donor-Advised Fund (DAF)?

A Donor-advised fund (DAF) is a charitable giving account designed exclusively to invest, grow, and give assets to charities for meaningful and lasting impact. Here is how it works:  You donate assets into a DAF and recommend to your advisor how you want the assets to be invested.  Your contribution(s) are tax-deductible and the assets in the DAF grow tax-free.  When you are ready, recommend a grant to a 501c3 charitable organization and the fund will distribute the gift directly to the organization.

 

Benefits of a Donor-Advised Fund

*Tax-effective – Contributions to your donor-advised fund are tax-deductible.  You can donate appreciated assets to maximize the tax benefit. 

*Convenient – Once you open a DAF and contribute assets, you take or receive an immediate tax deduction, and then you can donate to your favorite charity at any time. 

*Growth – In addition to your contributions being tax deductible, your assets grow tax-free inside of the DAF, allowing the donor to make a greater philanthropic impact.

*Flexibility – You can donate to any charitable organization you wish, and can even craft a Legacy Plan that allows your DAF to distribute to charities you believe in even after your lifetime.

*If you would like to set up a DONOR ADVISED FUND (DAF) – Please consult your Financial Advisor.

*If you would like to distribute a gift through a DONOR ADVISED FUND (DAF) to the Sisters of Charity of the Incarnate Word, please distribute funds to the following address:

The Sisters of Charity of the Incarnate Word of San Antonio

4503 Broadway

San Antonio, Texas 78209

Tax ID – 74-1676917

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