by Susan “Sam” Boren, Board Member and Donor Advised Fund Holder, Charitable Foundation of the Islands
Between now and the end of the year is the perfect time to open a new Donor Advised Fund (DAF), or to make gifts from your existing DAF. As you are considering year-end tax planning, donating appreciated stock to a new donor-advised fund is a great way to (1) establish a fund for your strategic philanthropy and (2) proactively manage your tax liability. Given the recent stock market strength, thinning portfolios by gifting appreciated stock is a timely thing to do.
A Donor Advised Fund gives you flexibility to make charitable gifts throughout the year to eligible 501(C)3 organizations. This year, in particular, needs are greater than ever, as government funding has been withdrawn from many social service agencies, public media, research programs, international aid programs, and education. A large funding gap has created the opportunity for philanthropists to use DAF assets strategically and urgently.
Unlike private foundations, DAF’s do not have a legal minimum payout. However, with over $250 billion sitting in DAF’s, isn’t it time to ‘get off your assets’. If you already have a DAF, you’ve already received the tax advantage available to you, and DAF balances are sitting idle when they could be gifted to support non-profit organizations struggling to meet the needs of our communities. Please consider stepping up to fund the causes you care about. They need you now more than ever…