What is a Donor Advised fund and 5 ways to leverage it to be Tax-Efficient and Generous 

Using a Donor-Advised Fund (DAF) is a tax-efficient way to be generous offers numerous  benefits, from immediate tax deductions and capital gains tax savings to simplified  administration and investment growth. Think of your DAF as your own personal mini foundation, giving you all the benefits with a lot less hassle. 

1. Immediate Tax Benefits 

 - Receive Instant Deductions: Get an immediate tax deduction for your donation, whether it’s  cash, securities, or other assets. 

 - Maximize Your Giving: Reduce your taxable income by donating to the DAF and increase  the amount you can give. 

2. Strategic Charitable Giving 

 - Plan Your Donations: Take your time to decide which charities to support while your funds  grow tax-free. You get more control over your donations and don’t need to keep every pesky  receipt. 

 - Long-Term Impact: Invest your donations and make grants over time, allowing for  sustained charitable support. 

3. Simplified Administration 

 - Hassle-Free Management: The sponsoring organization handles all the administrative  tasks, including record-keeping and disbursements. 

 - Focus on Giving: with a Donor Advised Fund you can give publicly or anonymously. 

4. Capital Gains Tax Savings 

 - Donate Appreciated Assets: Avoid capital gains taxes by donating appreciated securities  directly to your DAF. 

 - Increase Your Giving Power: Maximize the value of your donation by leveraging tax  advantages. 

5. Family Generosity 

 - Teach Philanthropy: Involve family members in the decision-making process, promoting a  legacy of giving. 

 - Shared Values: Collaborate on charitable goals and engage in meaningful discussions about  impact. 

By thinking of your DAF as a personal mini-foundation, you can strategically manage your  charitable giving, involve your family, and create a lasting philanthropic legacy. Consult with  our financial advisors to ensure that you make the most of your DAF and align it with your  charitable goals. Now go forth and give generously, with a smile!

*Disclosure: Donors are urged to consult their attorneys, accountants or tax advisors with respect to questions relating to the deductibility of various types of contributions to a Donor-Advised Fund for federal and state tax purposes. To learn more about the potential risks and benefits of Donor-Advised Funds, please contact us.