Did you know? A Donor Advised Fund (DAF) is like a personal giving account. When a DAF is created, it allows you, the donor, to make recommendations for the annual distribution of the available grant dollars. You have the flexibility to change the grant recommendations to eligible charitable organizations that are of interest to you.
This strategy can also generate tax savings while helping you streamline charitable giving. Creating a DAF at the DeKalb County Community Foundation is easy to do. Any gift of cash, securities, or other appreciated assets can be used. Learn more about creating a fund.
If your estimated income tax deductions are not large enough to warrant itemizing, consider increasing your charitable gifts to reach the threshold. By “bumping up” your charitable contributions and directing them into a DAF, you can itemize and receive a tax deduction for your giving this year and recommend grants to your favorite charities at your convenience over a period of years, while taking the standard deduction in future years where it does not make sense to give as much or itemize.
A DAF can also help you minimize or avoid capital gains on long-term appreciated assets such as securities and real property. When you contribute long-term appreciated assets you have held for a year or more, you will receive a deduction equal to the assets’ average fair market value.
Keep in mind, donor advised funds are much more than just a great tax incentive, they allow you a personal and hands on approach to community impact. Funds represent gifts from individuals, families, corporations, and more.
For questions or more information, please contact Foundation Executive Director Dan Templin at 815-748-5383 or firstname.lastname@example.org.