A donor-advised fund, also called a DAF, can provide you with immediate tax benefits while making your charitable giving easier. Might a donor-advised fund be right for you? Here’s how it works.
You establish a fund at a sponsoring charity or financial institution. This could be a community foundation, a public charity with a donor-advised fund program, or even one of the well-known investment companies that sponsor DAFs. The minimum contribution to open a fund ranges from $5,000 to $25,000 (you can check with the fund sponsor for details). You make an initial contribution of cash or appreciated assets such as stocks or mutual funds to start your fund. You then receive an immediate income tax deduction. Some sponsors even let you name your fund.
Once established, you can suggest to your fund sponsor those favorite public charities you wish to receive grants from your fund, such as UUSC. The grants can be relatively modest or for larger projects such as a capital campaign . You do not get an additional tax deduction for these grants.
A donor advised fund is also a terrific way to make a legacy gift. You can suggest which charities you want to inherit any remaining assets in your fund at your passing. By naming UUSC as a recipient of all or a portion of the assets remaining in the donor advised fund, you help build the future of human rights. You also become a member of the Flaming Chalice Circle, our legacy society. UUSC is immensely grateful for such gifts in support of our future work.
If you are considering establishing a donor-advised fund we suggest DAF sponsors and work with you to help ensure your charitable goals are met. Of course, we also recommend that you consult your professional advisor for their guidance.
For more information on planned giving, please contact Brendan Donnelly at 617-301-4349 or by email at bdonnelly@uusc.org.
