What Are Donor Advised Funds?

 

Donor Advised Funds (DAFs) serve as wonderful platforms for many individuals, families, and organizations to use to streamline their philanthropy.

 

Here's how a Donor Advised Fund with the JCF works:

 

• To open a fund, complete the Donor Advised Fund Agreement and consult with JCF at 856-673-2560 or infojcf@jfedsnj.org to get started. 

• When ready, you can coordinate a contribution to the DAF. Your irrevocable charitable contribution is placed in an account with the JCF, using the fund name that you designate. The JCF accepts appreciated assets, checks, credit cards, and a variety of planned gift vehicles. 

• You determine an appropriate investment strategy for your DAF assets.

• You may recommend donations to specific charities, at any time, at a minimum of $100.

• You may make additional contributions to the DAF at any time.

• You enjoy the right to designate other donor advisors and successors who have the ability to recommend distributions from your fund. This could be family members, professional advisors, or other trusted colleagues.

• You will have convenient 24/7 access to your DAF account via our Donor Advised Fund online portal.

 

Why start a Donor Advised Fund with the Jewish Community Foundation?

 

People who choose a DAF typically have a strong desire to make a significant philanthropic impact, perhaps even to the point of establishing a private foundation, but without the added expenses and time-consuming requirements of creating a private foundation (such as formulating legal documents, filing annual returns for the IRS, etc. Please visit the IRS website for more information on private foundations.).

 

A DAF established through the Jewish Community Foundation, Inc. allows you to enjoy the benefits similar to establishing a private foundation, while enabling you to make grants to support Jewish Federation agencies, your synagogue, or other Jewish or secular 501(c)(3) non-profit organization that is important to you. The list of non-profits you can donate to is practically unlimited-- hospitals, universities, museums, and more.

 

Benefits of starting a DAF include:

 

• Ease of set-up and administration

• One centralized fund for all of your charitable giving

• Immediate income tax deduction for amounts donated to the fund, even if distributions to charities are not made immediately

• The opportunity to "bunch” charitable giving into one year in order to surpass the federal standard deduction to save on taxes, and then initiate future grant recommendations when ready

• No capital gains taxes on appreciated assets held for more than one year when donated into the fund

• The ability to potentially give even more money charitably, as the fund investments may increase in value, tax-free, over time.

• Recommending grants anonymously to beneficiary organizations, on a case-by-case basis, if desired

• Satisfaction from supporting your favorite charities with an account that you can personalize by name and pass on to your children

• None of the administrative responsibility or annual excise taxes associated with a private foundation

• Establishing a fund for a child or grandchild, to introduce them to philanthropy

• DAFs make great gifts for graduates, birthdays, b'nai mitzvot weddings, or other important occasions

 

How Do I Get Started?
 

To launch a fund right away, you can start by completing a Donor Advised Fund Agreement and submitting it to the JCF once finalized. 

 

We do encourage you to meet with a JCF representative first to discuss how a Donor Advised Fund operates, answer any questions you may have, and discuss your philanthropic interests, to ensure you get the most out of your new fund. 

 

If you would like to set up a meeting with a JCF representative to talk about opening a DAF, please contact us at 856-673-2528. Thank you.