3 "Hot" Reasons to Open a Donor Advised Fund with the JCF this Summer

Summer is here and you've got your sunscreen, sunglasses, and beach towel all ready to go.

Don't forget a donor advised fund, of course!

Although opening a donor advised fund (also known as a "DAF") with the Jewish Community Foundation, Inc. (JCF) may not be top of mind when heading down the Shore this summer, it's actually a great time to consider doing so before the proverbial tide goes out and the busy-ness of fall returns.

Here's an overview of how a DAF works:

• A DAF serves as an online charitable giving account where you can centralize your donations far and wide, so you don't have to administer and keep track of everything related your philanthropy-- the JCF does this for you instead.

• After opening a DAF with the JCF, you can contribute to the fund when you're ready, and you'll earn immediate tax benefits for the year in which you make the contributions.

• The JCF professionally invests the money you add into your DAF in one of four portfolio options that you choose, and it can potentially grow over time, tax-free.

  
  

• At your convenience, you can go online to recommend a grant ($100 minimum) to any IRS qualified Jewish or secular 501(c)(3) nonprofits from your DAF on your behalf, and the JCF processes the checks while your DAF tracks your grants over time, all so you don't have to.

3 "Hot" Reasons to Open a DAF this Summer, in Chronological Order:

1. First, you can take advantage of record-high stock prices if you aim to donate stocks, ETFs, mutual funds, or other appreciated assets into your DAF for your philanthropic endeavors. Without knowing what the future holds for asset prices, now might be a good time to consider locking-in any investment growth.

Important tax savings opportunity:

By donating appreciated assets held for over one year, you avoid capital gains taxes, which would otherwise eat into your gains.

2. Next, you can be well-prepared and avoid last-minute scrambling to support your synagogue by paying your membership dues or contributing to High Holy Day appeals and/or to the Jewish Federation of Southern New Jersey's JFund Campaign or other charitable causes that you typically may support in early fall.

Give anonymously or limit your contact information:

You can give anonymously through your DAF, or you can opt to share how you would like to be recognized by name, but not provide contact information, if preferred. A DAF has flexibility in how much information you reveal to the beneficiary organization when you recommend a grant from your account.

3. And thirdly for the calendar year, you can involve your family in grantmaking decisions thru your DAF to pass on the value of tzedakah (helping those in need) to your children or grandchildren, particularly around Thanksgiving, Giving Tuesday, Chanukah, or year-end when it's typically the most active time to give back to others. You can even set up "B'nai Tzedek Funds" for children under 18 to have their own charitable giving account, akin to a "mini-DAF."

Save time and paperwork:

A DAF makes it simple to give back without having to mail checks, use your credit card to donate online, or track receipts for tax records, all of which often happens at the end of the calendar year. It's a one stop-shop for your philanthropy.

Ready to Dive in and Start a New DAF?

For questions about DAFs or to open a fund today, contact JCF Executive Director David Snyder at 856-673-2528 or dsnyder@jfedsnj.org.

Note:

The JCF does not provide legal, financial, or tax advice. Consult your advisor as needed.