Individuals interested in long-term philanthropic endeavors may find Donor Advised Funds, or DAF, an appealing option to help support their charitable giving goals. By utilizing a DAF, you can:
⦁ Receive an Immediate tax deduction*
⦁ Have the flexibility to gift at a later time
⦁ Potentially see your invested donation grow over time
How does a DAF work? Let’s break it down a little further.
Legacy
From your Donor Advised Fund, you can gift on a regular basis and continue to support your charity or charities for the life of the donor fund. In the event of your passing, the administrator of your DAF will honor your wishes and instructions as to how to distribute assets to charities of your choosing. Your generous donation—LEGACY—will continue to benefit your community for years to comes.
Tax Benefits
Donor Advised Funds allow you to make donations with highly appreciated securities as well as cash donations. This allows you to minimize capital gains while still receiving a current year tax deduction.
Flexibility
A Donor Advised Fund gives you the flexibility to support multiple charities and not-for-profit organizations of your choosing. Examples are art programs, schools & universities, medical research, churches and a number of other qualified organizations. With a Donor Advised Fund, you will have more control over how your donations are used. Through a DAF, you can ear-mark donations to the charity of your choice for specific projects or activities. You also have control over how your name shows up on each donation you make. Legally, there may be a few limitations depending on what type of asset is being donated as well as the donor’s rights.
Through actively managed funds, the gift you make into a Donor Advised Fund has the potential to grow over time through reinvested dividends, interest and positive market performance. This allows you the ability to continue supporting the charities of your choice for a longer time period. Create a family legacy, control how and when your donations are used, grow your donations over time, and reduce your tax liability* through a Donor Advised Fund. To learn more about a Donor Advised Fund, please contact a Trust Officer at Central National Bank.
*Consult your tax advisor for more information