Donor-Advised Funds Make Charitable Giving Easier
A solution to maximize both charitable giving and tax savings.
Donor-advised funds simplify and organize charitable giving. Once a donor-advised fund is funded with your client’s donation of cash, stock or complex assets, those contributions offer maximum tax benefits to your client and streamlined documentation for you. Plus, you will be connecting your clients with the most trusted leader in the philanthropic field, gaining access to our in-depth knowledge of charitable giving programs.
There is no minimum dollar amount required to establish a donor-advised fund. There are also no minimums for gifts to the fund or grants from the fund.
Maximize Your Client’s Charitable Giving and Tax Savings at the Same Time
Donor-advised funds can help your clients receive maximum tax benefits while maintaining their same level and frequency of financial support to charities across the country. The Greater Kansas City Community Foundation is a public charity, so your clients will receive the maximum tax deduction allowed by law when making contributions to their donor-advised fund, and may be able to avoid capital gains tax on gifts of appreciated assets. Your clients are eligible for a tax deduction on the amounts they contribute to their donor-advised fund. Regardless of how many charities your clients support through their fund, there is just one tax receipt for each donation made to their donor-advised fund.
What is a Donor-Advised Fund?
Our donor-advised funds make charitable giving easy, efficient and rewarding without unnecessary rules or limitations.
- Your clients can choose to set up the fund under the Greater Kansas City Community Foundation or our national entity, Greater Horizons.
- Your clients can choose to invest their assets in the Community Foundation’s investment pools, or, if the fund's assets will exceed $100,000, their financial advisor can manage the investments.
- Your clients contribute cash, stock or other complex assets to the fund and their charitable dollars grow tax free.
- Your clients receive online access to their fund and are able to easily request grants, track the fund’s charitable activity and access quarterly fund statements.
- Your clients can name successor advisors to their fund, involving future generations in their charitable goals and giving, allowing you to establish and foster connections with the next generation.
Identify Your Ideal Clients
Think about your clients who fit the descriptions below – they might be an ideal fit for a donor-advised fund. We often work with clients who:
- Are in a transition phase of life – empty nest, nearing retirement, involved in estate planning
- Want to create and leave a legacy for future generations
- Desire a charitable tax deduction now with the flexibility to make distributions in the future
- Want to grow their contributions tax-free over time
- Are holding appreciated assets (publicly traded securities or other complex assets) and have high capital gains tax exposure
- Plan to sell a private company
- Are private about their wealth and/or giving
IRA Charitable Rollover: Qualified Charitable Distribution
If you work with clients age 70.5 or over who want to make qualified charitable distributions (QCDs) from their IRAs, we can help. While donor-advised funds are not eligible to receive QCDs, we can set up a designated fund or a scholarship fund to receive a QCD. A QCD can satisfy your client’s required minimum distribution (RMD) up to $100,000, and help your client avoid taxable income.
Learn more on our blog, or contact us to set up a designated fund or a scholarship fund.