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Are You Afraid of the DAF?

October 22, 2019 - Don’t be left in the dark about donor-advised funds.

In the 2018 DAF Report, National Philanthropic Trust reported that over a one-year period more than $19 billion was granted from donor-advised funds, or DAFs, to charitable organizations. The ease and flexibility of a donor-advised fund make it an appealing choice for fulfilling philanthropic goals. Donor-advised funds are currently the fastest-growing charitable giving vehicle, not only for high-net-worth individuals but also for those who are younger and have more modest means.

Below, we shine a light on ten reasons to embrace donor-advised funds and simplify your philanthropic giving process.

  1. GIVE ANYTIME, ANYWHERE
    You can recommend grants to qualified 501(c)(3) charities at any time. And while not all nonprofit organizations qualify for a grant from a donor-advised fund, most of them do. If you have a question as to whether or not a specific charity qualifies, just ask.
  1. CONTINUAL GIVING STREAM
    Additional contributions can be made to your donor-advised fund at any time. Add assets every month or once a year – it’s up to you.
  1. MAXIMIZE GIVING WITH VARIOUS ASSETS
    You can contribute cash or a combination of cash and noncash assets such as appreciated securities or mutual funds to fund your donor-advised fund. 
  1. TAX SEASON MADE SIMPLER (and who doesn't want that?)
    With a DAF, your giving has structure, including a single tax receipt. It’s a one-stop-shop for managing all your charitable giving. You make deposits and grant recommendations while we take care of all your administrative needs.
  1. IMMEDIATE TAX RELIEF
    Contributions to your donor-advised fund qualify for an immediate tax deduction. Make a contribution. Receive a tax deduction. It’s that easy. Added bonus: You don’t pay capital gains tax on donations of appreciated assets.
  1. TAX-FREE GROWTH
    Your donor-advised fund grows tax-free. After you choose the best HighGround investment solution(s), your DAF will continue to grow tax-free.
  1. GIVE NOW, DECIDE LATER
    Donor-advised funds provide flexibility in giving by reducing the urgency to select the charity you wish to receive your gift at the time the contribution is made.
  1. BEHIND THE SCENES GIVING
    Grants can be made anonymously from your donor-advised fund. 
  1. STAY IN CONTROL
    Depending on your giving horizon, choose from HighGround’s investment solutions to determine how your DAF is invested. We’ve given you options, but you remain in control.
  1. QUICK AND EASY
    We want it to be easy for you to grow your assets for good. That’s why establishing a donor-advised fund at HighGround is simple. Contact us today to establish your easy and flexible giving solution.