The Flexibility of Funding a Donor Advised Fund

Post On: September 21, 2020

Posted In: Financial Planning Giving Non-Profits

Donor Advised Funds (DAFs) have long been lauded as excellent tools for those seeking to increase and manage their amount of charitable giving. A DAF is an account used by a family, business, or individual to manage charitable giving. If you haven’t opened your DAF account yet, you may be skeptical as to whether it’s the right avenue for you financially. You may be concerned that you do not earn enough income to qualify for a DAF. You may be asking, “Aren’t DAFs just for millionaires?”

 

Although wealthier donors may indeed benefit from DAF accounts, DAFs are for anyone who is hoping to expand their generosity, capture immediate tax benefits, and see their dollars put to ongoing charitable use. There are multiple benefits to opening a DAF account:

 

  • They are donor friendly. DAFs can help you turn a portion of your finances into tax-deductible donations, dispersed on a schedule that you determine, to charities and causes that are close to your heart, over years to come.
  • You receive full tax credit for your donation, even if all of it isn’t given away.
  • All of your giving can be managed from one account on a laptop, smart phone, or other device. Your giving is easy to track, manage, and, at tax time, you’ll only need one receipt.
  • You maintain a measure of control. DAFs can be a reassuring way for you to ensure that your larger gifts are measured and are being utilized for specific purposes.
  • Balances that are unspent can be invested, so that your DAF value can potentially increase, over time.

 

Funding a DAF offers you a lot of flexibility! If you choose not to fund the account with your regular income, you can use bonuses, stocks, real estate, inheritances, hedge funds, or several other avenues instead.

 

At Ambassador Advisors, we believe that our financial resources are entrusted to us from God, to steward with His wisdom, for His glory. Having a DAF increases your freedom to donate and to grow your resources in the future, all while exercising generosity towards causes and charities about which you are passionate.

 

Contact us today to take this step towards establishing a new way to donate. We can help you protect your investments, achieve your financial goals, and expand your charitable giving.

 

 

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purposes of avoiding penalties that may be imposed by law. Each tax payer should seek tax, legal or accounting advice from a tax professional based on his/her individual circumstances.
This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions. Information has been obtained from sources believed to be reliable and are subject to change without notification. The information presented is provided for informational purposes only and not to be construed as a recommendation or solicitation. Investors must make their own determination as to the appropriateness of an investment or strategy based on their specific investment objectives, financial status and risk tolerance. Past performance is not an indication of future results. Investments involve risk and the possible loss of principal.

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