When you launch a donor advised fund (DAF) with the Jewish Community Foundation, Inc., you can boost your charitable giving efforts in many ways.
With school starting this time of year for children throughout South Jersey... BINGO... why not repurpose a couple of famous nursery rhymes to sing the praises of donor advised funds?
Here is a brief, educational primer about DAFs:
"Jack Be Nimble, Jack Be Quick"
With a donor advised fund, donor Jack can be nimble and quick.
As a donor, any number of charitable causes may compel you to give a donation, such as:
Making a gift in honor of your good friend, a community leader who is being honored by a charitable organization
Supporting a campaign to upgrade a synagogue's library or day school's playground
Giving to an emergency humanitarian need that arises locally or elsewhere in the world
But these donations can result in a lot of checks being written and mailed or processing credit cards, plus keeping track of your charitable gifts for tax purposes.
Instead, with a DAF, you can first gradually contribute to your fund at your own pace and gain immediate tax benefits for your donations into the fund. All the while, the fund is professionally-invested and may grow in value over time.
Then, when you want to support a beloved cause, you can be nimble and philanthropic by logging on to your online DAF account and quickly recommending a grant from your fund to benefit any IRS-approved charitable organization. The JCF vets the charity, processes the check, and keeps a record of it for your future reference. Now you can return to your other tasks, such as jumping over candlesticks.
"Sally Sells Seashells by the Seashore"
Perhaps Sally's seashell sales (at the Jersey Shore of course) spike, so she then starts investing her seashell earnings in stocks or other assets. In time, she may find that donating her winning stocks could provide a great benefit to her instead of selling them and then giving tzedakah to charity.
Consider that selling a stock that has appreciated in value (and held for over one year) can incur capital gains taxes, thus reducing her actual profits.
Instead, if Sally opens a donor advised fund with the JCF and then donates her appreciated stock into her DAF directly, she would avoid paying taxes on the gains she made above-and-beyond her purchase price. Plus, she would earn a charitable deduction on the full fair market value of the stock donation if she itemizes her taxes.
Then, when Sally is ready, she can recommend grants from her DAF to benefit any charitable organization.
Now, she can go back to her beach chair and take a break from her successful seashell selling and generous charitable giving.
"Twinkle, Twinkle Little Star, How I Wonder What You Are"
All of our DAF donors are stars. But there's no wondering why!
We wish a hearty "THANK YOU" to all of the JCF's DAF donors who use our services to streamline their philanthropy. You are making the world a better place with your philanthropic support of deserving causes, and it is our honor to help you achieve your goals.
To start your own donor advised fund or for any questions about this important philanthropic tool, please contact the JCF at 856-673-2528 or infojcf@jfedsnj.org today.
Note: The above information should not be considered financial, legal, or tax advice. Contact your trusted advisor to help you determine the outcome of your charitable giving.