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Unlocking Philanthropic Potential: 4 Must-Know Benefits About Donor-Advised Funds

Sarah NavranCorporate Charitable Giving, Individual & Family Giving

A donor-advised fund is a charitable investment account that allows donors to organize and optimize their giving potential. Although donor-advised funds have been around since the 1930s, they have become the fastest-growing charitable giving vehicle in the United States in recent years. Let’s explore four key benefits that make donor-advised funds at the Community Foundation a popular choice for individuals, families and companies looking to maximize the impact of their charitable giving.

  1. Quick and Easy Set Up

Establishing a donor-advised fund can be completed in no time. At the Community Foundation, we provide a seamless onboarding process with minimal paperwork and fees. Once a fund is established, we offer a variety of ways to contribute to the fund so you can begin focusing on grantmaking without delay.

  1. Tax Advantages

It is no secret that the tax benefit is one of the attractive advantages of a donor-advised fund. When setting up a donor-advised fund, you can contribute assets you would like to set aside for charity into your fund. Because the Community Foundation is a 501(c)(3) public charity, your gifts to your donor-advised fund are tax-deductible. Since the assets in your fund are invested, your charitable dollars can grow tax-free.

  1. Professional Partner for Your Charitable Giving

Once you establish your donor-advised fund, you gain access to a team of experts who can help guide your philanthropic journey. Our team of philanthropic consultants can connect you with nonprofit organizations, provide best practices for grantmaking and facilitate complex conversations related to your philanthropy. With several decades of combined experience, our team can complement your existing advisory team.

  1. Acceptance of a Variety of Gifts

Donor-advised funds offer unique flexibility in accepting various types of gifts. Whether you would like to give cash, real estate, privately held business interests, stock or retirement plans, the process to give to your donor-advised fund is smooth. Because a donor-advised fund offers flexibility when giving, you can consider your entire financial portfolio when thinking through your charitable plans.

Donor-advised funds are a powerful tool for impactful charitable giving. With the easy establishing process, tax advantages, insight from our philanthropic consultants and the ability to accept various gifts, donor-advised funds have become a go-to solution for philanthropists committed to making a long-lasting difference in their communities and beyond.

Is now the right time for you to establish a donor-advised fund? Fill out our online form to get started. If you have any questions, give us a call at 816.842.0944 or send us an email at info@growyourgiving.org.