Donor Advised Funds

Are you looking for an easy, cost-effective way to support Angel Foundation and other causes you love? A donor advised fund, which is like a charitable savings account, may be the right choice for you.

Here’s how it works. You transfer cash or other assets to a tax-exempt sponsoring organization such as a public foundation. You can then recommend—but not direct—how much and how often money is granted to Angel Foundation or other charities—sometimes as easily as using a Web portal. And you avoid the cost and complexities of managing a private foundation.

What do you receive in return? An immediate federal income tax charitable deduction at the time you contribute to the account, and the power to make recommendations on which charities to support whenever you want. You centralize your giving and record-keeping in one location. And maybe best of all, you can start a legacy of giving by letting your children help decide which grants to recommend.

Be sure to carefully evaluate a sponsoring organization to make sure it supports your interests, values and the type of asset you are considering as a funding source. Get to know the organization’s policies and procedures-from minimum contributions to administrative fees. Each organization handles these details differently.

Create a donor advised fund with one of the following assets:

  • Cash
    • When you establish a donor advised fund with cash, you will receive an immediate federal income tax charitable deduction for the year the gift was created.
  • Appreciated Securities
    • Eliminate capital gains tax by donating appreciated assets you have held for more than a year on the transfer.
  • Retirement Plan Assets
    • You may make your donor advised fund a beneficiary of your retirement plan assets. You could then designate your loved ones as the donor advisors, which would allow them to make recommendations on what charitable organizations to support through the fund.
  • Tangible Personal Property
    • You may be able to use non-income-producing property such as stamp and coin collections or works of art in exchange for a federal income tax charitable deduction.
  • Real Estate
    • Your gift of appreciated real estate will qualify for a federal income tax charitable deduction for the fair market value of the property and eliminate long-term capital gains tax.