Simplify your giving with a Donor Advised Fund

Do you want to have some say in how your funds are used for the work of the church or institution you have chosen to support? Through a Donor Advised Fund you can realize many of the benefits of a private foundation without the costs and complications typically associated with private foundations.

What is a Donor Advised Fund?

A Donor Advised Fund is an estate planning tool which allows you to make tax-deductible gifts now, and make recommendations as to how those gifts should be used at a later date. Simply stated, A Donor Advised Fund is an account you set up with your local Conference or educational institution. This account makes it possible for your to make recommendations for the use of your gift as you would be able to do with a private foundation -- without the foundation startup and ongoing administrative costs. You make tax-deductible gifts now, and later advise which organizations will benefit from your fund.  With a donor advised fund you receive both the tax benefits of giving and the joy of God's blessing.

How does it work? 

When you establish a Donor Advised Fund with your local conference or institution, you make a tax-deductible gift of cash or other assets. The gift placed in the Donor Advised Fund is invested and managed by the conference or institution. You are eligible to receive a charitable tax-deduction for the year that you make your gift. Later on, you advise the institution how you would like those funds to be used. It is important to note that your gift to set up a donor advised fund is irrevocable. The charitable organization has legal discretionary ownership and control of the fund, but typically considers positively your recommendations for charitable distribution.  You have no right to the income or principal of your Donor Advised Fund. The value of your fund will fluctuate. Potential donors should consult their qualified professional legal and/or tax advisors.

Here's how a Donor Advised Fund can benefit you.

• A reduction in your income tax will be realized if you itemize, whether you donate cash or other assets. You will avoid capital gains taxes on long-term appreciated assets if you make the gift before you sell.
• Your gifted assets are removed from your estate so your estate won't be subject to estate tax.
• You can suggest that your legacy benefit the work dearest to your heart during your lifetime -- creating a family tradition of giving and a legacy that lives long after you.
• Your gift will grow, providing greater support to your favorite charities and/or ministries.
• The advantages of a private foundation are yours, but you avoid expensive startup and ongoing administrative costs. Your gift is also not subject to the lower charitable contribution limits set on gifts to a private foundation.

If you're looking for a way to leave a legacy and haven't formulated a plan on what you want to accomplish, a Donor Advised Fund may just work for you.