Life is hectic, your charitable giving efforts need not be.
The Jewish Community Foundation, Inc. can help you streamline and even enhance your philanthropy when you open a donor advised fund (DAF).
A DAF is akin to having your own online charitable giving account where you can centralize most or all of your donations.
After opening a DAF with the JCF, you can contribute cash or appreciated assets, earn immediate tax benefits, and then recommend grants from the fund to nonprofits and synagogues at your convenience. The JCF handles the rest such as professionally investing your fund, which can even grow over time, processing your grant requests, and more.
Here are three examples of how you might be able to benefit from a DAF with the JCF:
1. Emergency Giving:
Perhaps you've donated to support Ukraine as the country faces enormous difficulties during the current conflict with Russia. Or maybe you're inclined to donate to help others following a devastating weather event or other tragedy. With a DAF, you can set aside money today in your account to be able to quickly respond to these situations tomorrow. You can do this by simply logging on to your DAF and initiating a grant request that the JCF then processes for your designated beneficiary nonprofit organization.
2. Involving Family Members:
A DAF can be a handy resource for parents or grandparents looking to involve their kids or grandkids in philanthropy. By contributing to your DAF, you can talk with your family or other loved ones about how you wish to make a difference in the world. Many families give during certain holidays or other occasions, and a DAF will show you where all of your grants have gone and help you track your charitable giving over time. If your children/grandchildren are 12 years old or up, they can even have their own Carob Tree Fund to use for charitable giving, as a kind of mini-DAF.
3. Leaving Philanthropic Dollars for Future Generations
With a DAF, another way you can benefit your children or grandchildren is by adding them as designees to your fund and they can initiate charitable grant recommendations after your lifetime. This passes on the value of tzedakah and can be an opportunity for your family to remember you as they recommend grants from the fund. You can also designate your fund to convert into an endowment fund after your lifetime, to perpetuate your annual gifts for many future generations.
These three examples show the versatility of a DAF and how it can boost your charitable giving. Many JCF donors utilize one or more of these strategies, and we welcome you to do the same, while making your life easier.
To learn more about a DAF or to start your own fund, please contact the JCF today at 856-673-2528 or infojcf@jfedsnj.org.