Schwartz Financial Associates logo

Schwartz Financial Associates, Inc

 

701 Route 73 North, Suite 6, Marlton, NJ 08053

Phone: (856) 216-0390

 

Website: www.schwartz-financial.com

May/June 2022

Giving to Charity with a Donor-Advised Fund

Giving to Charity with a Donor-Advised Fund

A donor-advised fund (DAF) is a charitable investment account established to manage charitable contributions from many different donors.


When you contribute to a DAF, you generally can choose the charities you want to support and the time frame for distributing the assets. You’re entitled to an immediate tax deduction for the full amount of your contribution in the year you donate the assets, even if the charity won’t receive them right away. You don’t have to be wealthy to contribute to a DAF. Some funds have relatively low contribution thresholds.


Making Contributions
You can contribute many kinds of assets to a DAF, including: cash, stocks, bonds, mutual funds, retirement account assets, life insurance, cryptocurrency and, other assets. You won’t pay capital gains on any appreciated assets you donate to the fund, and you’ll typically be entitled to a tax deduction based on the asset’s current value. Wealthy donors may be able to reduce the size of their estate for estate tax purposes by contributing to a DAF, because assets contributed to the fund aren’t subject to estate tax.


Getting Started
There are several types of sponsoring organizations for DAF: community and faith-based organizations; public foundations, including national and international charities and university and hospital foundations; and national DAF organizations. Your first step should be to identify the type of fund that aligns with your giving strategy. Although you can specify the organizations that you want to support, keep in mind that the fund makes the final decision on where your donations ultimately go.


A Word About Life Insurance
Gifting a life insurance policy that you no longer need to a DAF is one option to consider. The fund administrator then becomes the sole owner and beneficiary of the policy. A qualified appraiser will determine an accurate value for the deduction.


When Will it End?
You can make a bequest in your will to the DAF sponsor or make the sponsor a beneficiary of assets. Many sponsoring organizations also enable you to create a succession plan for your DAF—allowing you to pass the remaining funds in your account on to your heirs or to your favorite charities.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Registered Representative offering securities through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker/dealer and a registered investment adviser. Cetera is under separate ownership from any other named entity.
Advisory Services and Financial Planning offered through Vicus Capital, Inc., a Federally Registered Investment Advisor.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.
Schwartz Financial Associates, Inc and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.