Give More With Zero
May 3, 2023 - Since our founding in 1930, HighGround’s team of legal experts has helped charitably minded individuals creatively and strategically support the important work of nonprofits. Our team can help individuals and families establish a charitable giving plan based on their unique needs and goals, utilizing tools like gift annuities, trusts, and endowments. One such giving tool that is flexible enough to be a smart solution for most donors is the donor-advised fund (DAF).
A quick refresher: A donor-advised fund is a charitable giving account that is sponsored by a public charity, like HighGround Advisors, and funded by a donor’s tax-deductible contributions of cash, stock, or other assets. Contributions to a DAF have the potential to grow, tax-free, over time and donors retain the right to recommend grants from the DAF to eligible charities of their choice. For these reasons, a DAF is an excellent vehicle for donors who wish to give in a tax-advantageous way and streamline the administration of their donations.
HighGround desires to maximize donors’ charitable impact and steward their generosity wisely. For this reason, we now allow DAF Donor Advisors to give more with zero.
That’s right. HighGround no longer charges an administrative fee on our donor-advised funds.
Most sponsoring organizations of DAFs charge an administrative fee on the market value of a donor-advised fund to cover expenses for tax receipt preparation, compliance, and the processing of contributions and grant recommendations. While HighGround provides these administrative services, we do not charge the administrative fee. This means more dollars will go directly to the charities Donor Advisors support with their DAFs.
We’ve also lowered the minimum initial contribution to open a DAF from $10,000 to $1,000. With these changes, the DAF is an accessible giving tool for even more people, with even more flexibility. Rather than waiting until year-end to make a significant tax-deductible contribution to a DAF, a donor can use a DAF as a charitable savings account, opening one today with a small contribution and slowly building the balance over time.
In 2022, nearly $2.2 million was granted to over 100 charities by donor-advised funds held at HighGround. Still more was contributed to HighGround DAFs, including mineral interests, real estate, stock, and cash. Is a DAF right for you? Call our Client Partner Communications Specialist today at 214-978-3303 to learn more.