What is a Donor-Advised Fund, and how does it work?
A Donor-Advised Fund is a charitable-giving tool that you create with a financial services institution by making a $10,000 (or more) irrevocable contribution to start the fund. You can contribute appreciated assets and investments (you avoid paying capital gains tax), proceeds from the sale of a business, or cash to start your Donor-Advised Fund. You immediately qualify for a tax-deduction. Your fund is invested and grows tax-free, and you can even make additional donations to your fund over time.
What charitable organizations qualify to receive support from a Donor-Advised Fund?
You can choose which IRS-approved, public charity (or charities) to support. And, you choose when and how much to support the charity of your choice from your Donor-Advised Fund.
How long does a Donor-Advised Fund last?
Annual disbursements from a Donor-Advised Fund aren’t required by law, so your fund can stay in existence, and grow, until you decide to allocate it. Should you die, you decide who takes over your Donor-Advised Fund, and what charities to support in your absence.
Be sure to reach out to your financial advisor or a financial services institution for more information on creating a Donor-Advised Fund.
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Have questions about a Donor-Advised Fund or want to move forward with your gift? Please complete the form below to be put in touch with a member of the United Way team: