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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- BEHIND THE SCENES GIVING
Grants can be made anonymously from your donor-advised fund.
- 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.
- 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.