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