X
GO
  • filtering through
    your money management questions
  • partnership
    that expands your resources
  • collaborative approach
    to help you create the life you want
Filter Insights
Receive Insights in your inbox.

Donor-Advised Funds

posted on
Donor-Advised Funds

In conjunction with our tax advisors at DHG, we have helped many clients over the years fulfill their goals for charitable giving while enjoying a reduction in their tax obligation during the calendar year of the donation.  

A Donor-Advised Fund is one way to accomplish that goal.  It works particularly well during a year of a significant positive change in circumstances; such as an unexpected bonus or a large deferred compensation payment.  For example, an individual may make a regular donation to a specific charity each year.  In the year of a significant bonus, they may choose to fund 5-10 years of charitable intent at once, by making a deposit to a Donor-Advised Fund.  

It allows an individual to take a deduction for the whole amount contributed; but doesn’t require the donor to distribute the funds to charity right away.  Instead, they’ve created a “charitable checkbook” allowing for the funds to be paid out to qualified charities over a period of their choosing.  The funds can also be invested between the period of deposit and distribution, allowing for potential tax-free growth.

We’ve attached an article that provides even more detail on Donor-Advised Funds and their potential benefit.  If a Donor-Advised Fund sounds like something that may be right for you, we would welcome the opportunity to work with you and your tax advisor to help you accomplish your goals. 

Attachments

  1. DonorAdvisedFunds.pdf 3/21/2018 1:31:00 PM