Start a tradition of generosity this year with a donor advised fund (DAF). This is a great way to manage all your charitable giving in one place, practice generosity, and teach younger generations the importance of philanthropy by involving them in distribution recommendations every year. A donor advised fund has several appealing benefits as an avenue of generosity, including the flexibility to change which Methodist churches and organizations will benefit from the fund, minimal start-up time and costs, donations that are generally deductible at fair market value, and the ability to avoid capital gains taxes (gifts of real estate and appreciated securities).
To learn more about starting a Donor Advised Fund, call us at 334-793-6820 or email us at [email protected].
How a Donor Advised Fund Works:
- Create a donor advised fund with the Foundation with a minimum initial contribution of $10,000
- Receive an immediate tax deduction for the value of your gift
- The Foundation invests the funds in a balanced, conservative portfolio that applies prudent investment guidelines and social screening of investments. Your fund assets grow tax-free.
- Make your initial and annual recommendations of how the funds should be distributed to 501(c)(3) charities (50% of annual distributions must benefit a Methodist church or ministry)
- At any time, you and others can make additional contributions to the fund in any amount
- Receive annual statements of all contributions, distributions, and fund earnings
- Appoint a successor to continue your legacy of generosity when you pass, or have the Foundation convert the donor advised fund into a permanent endowment supporting your chosen charities
A Donor Advised Fund Could Be Right for You If:
- You want to simplify your giving into one fund instead of making individual donations to various charities
- You have considered creating a private foundation and would like a lower-cost alternative
- You have appreciated assets such as real estate, stocks, bonds, etc.
- You want to teach principles of generosity to children or grandchildren by allowing them to assist in charitable distribution recommendations
- You are expecting the sale of a business or property that is not your principal residence
- You receive a non-taxable life insurance death benefit, an inheritance, or a legal settlement
- You want to give now and see how that gift is making a difference while you’re still alive
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