Support life-changing care through a Donor Advised Fund
A donor-advised fund (DAF) is a type of giving program administered by a third party, such as a community foundation or a financial services company, that allows you to combine tax benefits with the flexibility to support your favorite charities. It is created for the purpose of managing charitable donations on behalf of an organization, family, or individual. An increasingly popular charitable vehicle, DAFs are an excellent way to simplify your charitable giving and facilitate your strategic philanthropic goals. DAFs allow donors to give cash, stock, and other assets where the donor receives an immediate tax deduction when the contribution is made but can recommend specific amounts to the charities of their choice, such as for Marian Regional Medical Center's benefit a later time.
How does it work?
When you open a donor advised fund (DAF), you are creating a separate entity to use the assets under management to support qualified charities.
You can fund it by irrevocably contributing assets such as cash, appreciated stock, insurance proceeds, or various other forms of capital. Your DAF is a separate entity, so you can take an immediate tax deduction for the gift amount.
As an advisor to the fund, you can choose to manage the investments personally or have an investment advisor manage the portfolio.
The two primary avenues of supporting Marian with your donor advised fund are through a beneficiary designation and recommending grants.
Beneficiary
Recommending a gift to the Marian Foundation through your donor advised fund (DAF) is simple. A DAF is a separately managed fund that is maintained and operated by a sponsoring organization, such as Fidelity Charitable and Schwab Charitable. Once the donor establishes a DAF, that individual retains advisory privileges with respect to investment allocations and distributions to various charities.
In addition to offering ease of administration, a donor-advised fund offers the opportunity to create a low-cost, flexible way to diversify your philanthropy without the expense of creating a private foundation.
Grants
While you or your assigned successor(s) are advising the fund, you can recommend grants from the fund to support Marian or other charitable organizations.
What are the Benefits?
- Receive an immediate deduction on your taxes.
- Assets in the fund grow tax free.
- Easier, and less expensive than establishing a private foundation.
- Allows you to get started with a relatively small amount of money, as low as a $500 gift.
- Tax smart for those using a "lumping" strategy under the new tax laws.
With a low barrier to entry and multiple ways to create charitable impact, DAFs are a great strategy for charitable giving. If you have questions about setting one up, or want more information please contact Marian Regional Medical Center Foundation.