Gifts Through a Donor-Advised Fund

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Donor-Advised funds are far easier to establish than private foundations and they have lower minimums and minimal set up costs.

How does it work?

When you open a Donor-Advised Fund (DAF), you are creating a separate entity with the sole purpose of using the assets under management to support qualified charities.

You can fund it by irrevocably contributing assets such as cash, appreciated stock, insurance proceeds, or various other forms of capital. Given that your DAF is a separate entity, you can take an immediate tax deduction for the amount of the gift.

As advisor to the fund, you can elect to manage the investments personally or choose to have an investment advisor manage the portfolio.

The two primary avenues of supporting NU with your Donor-Advised fund are through a beneficiary designation and recommending grants.

Grants

While you or your assigned successor(s) are advising the fund, you can recommend grants from the fund to support NU or other charitable organizations.

Beneficiary

By assigning NU as a beneficiary, you are ensuring that when the DAF ceases to have an advisor the assets in the account get transferred to NU.

What are the Benefits?

• Receive an immediate deduction on your taxes when you contribute to your DAF.
• Assets in the fund grow tax-free.
• Easier and less expensive than establishing a private foundation.
• Allows you to get started with a relatively small amount of money, as low as a $500 gift.

With a low barrier to entry and multiple ways to create charitable impact, DAFs are a great strategy for charitable giving. If you have questions about setting one up, or want more information please contact Niagara University.