Simplify Your Giving with a Donor Advised Fund | Impact Newsletter | June 2021
Last updated: June 1, 2021, at 4:24 p.m. PT
Originally published: May 24, 2021, at 9:05 a.m. PT
Your financial and charitable goals are a reflection of your commitment to support the future of your loved ones, charitable organizations you value, such as the YMCA of Greater Seattle, and the greater community. But it can be difficult to keep track of the organizations you wish to support and the documents required to receive your benefits from charitable gifts. A convenient and easy way to organize your charitable intentions is to create a donor advised fund.
Here’s How It Works:
- You open a donor advised fund with a written agreement at a community foundation or sponsoring organization.
- You can make contributions to your fund at any time. These contributions are invested by the sponsoring organization, which provides regular accounting to you.
- You make the recommendations that various amounts be distributed to charitable organizations of your choice, such as the YMCA of Greater Seattle.
- You can turn your donor advised fund into a lasting legacy at the Y by naming us as a beneficiary of your account.
When choosing where to set up your donor advised fund, be sure to choose the sponsoring organization carefully. You’ll want to make sure the one you select supports your values.
Take time to carefully read their policies and procedures and review their administration or investment fees.
How You Benefit From a Donor Advised Fund
- You qualify for a federal income tax charitable deduction when you make a gift to the fund.
- You don’t have to retain records for each contribution.
- Families can build a tradition of giving by involving children in the decisions about what grants to recommend.
Already Have a Donor Advised Fund?
Consider joining the #HalfMyDAF Movement and putting your money to work. Every nonprofit you support becomes eligible for a matching grant, which means your charitable dollars can be supercharged. Learn More >
The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.