Setting up a Donor Advised Fund at the Community Foundation for Greater Rome, may be one of the wisest – and easiest things you need to do before year’s end. Here are ten great reasons to consider starting one today…
1) Easier Record Keeping
The IRS requires you have a receipt with the correct language for any charitable contribution over $250. A donor-advised fund (DAF) can eliminate the need for receipts from many groups. We send you one receipt each time you make a contribution to your fund. That’s all you need for the IRS.
2) Flexibility of Contributions
Some years you may want to contribute more than in other years. With a DAF you can make contributions to your fund—or forego them—as you wish. You can still recommend distributions from your DAF even in years when you contribute nothing to it.
3) Avoid Capital Gains Taxes on Appreciated Securities
If you sell an appreciated security, you owe tax on the capital gain. Donating that security to your DAF can save on taxes. Check with your CPA to find out if that strategy works for you.
4) Other Tax Advantages
Many donors work with a CPA to find other ways that flexible contributions save them money on taxes.
Talk to your CPA about our Tax Advantaged Strategies for Creative Giving to see if any are right for you
5) Donations Can Continue to Grow
All donor-advised funds are added to our pool of assets. Our Investment Committee uses a comprehensive asset allocation model designed to maximize long-term growth while minimizing volatility.
6) Fund Growth is Tax Free
As a tax-exempt organization, the Community Foundation pays no income tax. Therefore, any growth in your donor-advised fund is completely tax-free.
7) Use the Fund to Make a Difference in Perpetuity
A DAF offers many options upon your death. Designate someone to take over the responsibility of recommending future contributions, or specify what types of charitable institutions to fund in the future
8) Ability to Distribute Funds Anonymously
If you want to give anonymously, we will make sure the recipient organization only sees our name on the check. You can decide to be anonymous or not on a case by case basis.
9) Availability of Advice and Assistance
Which causes are the most worthy? We deal with nonprofits daily. We can provide advice to help you make the wisest choices
10) Easy to Get Started
Starting a donor-advised fund is easy. You can fill out our forms in a few minutes and start with as little as $5,000.
For more information, email Joel Snider at jsnider@cffgr.org.
Or call him at 706-728-3453