Donor Advised Funds
Donor Advised Funds (DAF) allow you to manage your charitable giving simply and efficiently. If you support multiple organizations, or if you want to secure a charitable deduction now and designate beneficiaries later, a DAF may work for you. DAFs can be established with a number of entities, including community foundations and financial services companies.
If you're looking for a way to benefit CBF both now and in the future, you may use a DAF to direct gifts to CBF during your lifetime and, when you pass away, your children can carry on your legacy of giving.
How it Works
- You establish a DAF with your local community foundation or preferred financial services company.
- You make an initial gift of cash or stock to the DAF and receive an immediate charitable deduction.
- You make annual recommendations on gifts to be directed from your DAF to CBF or other qualified charities you support.
- When you pass away, your children may recommend charitable gifts from your DAF for a number of years.
Benefits of a DAF
- A flexible, easy way to establish a centralized vehicle for charitable giving.
- Tax-efficient lower cost alternative to a private foundation.
- Tax savings from a charitable tax deduction in the year of your gift.
- Ability to direct your charitable gifts over several years.
Planned Gifts From Your DAF
You may be able to gift funds that remain in your DAF at the end of your life to CBF through a "payable on death" or "transfer on death" beneficiary designation. Ask your DAF administrator for more information.
It's easy to get started with opening a DAF account and recommending gifts to CBF. Contact us to learn more about DAF benefits and planning.