What is a donor-advised fund?
Donor-advised funds allow you to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction. Your donor-advised fund is established according to specific IRS guidelines that create tax advantages and support ease of administration. Then, you can recommend gifts to favorite charities from the fund when the time is right.
Why is a donor-advised fund useful?
A donor-advised fund is easy to establish and maintain. With a donor-advised fund, you’ll enjoy:
• 24/7 online access to view your account and recommend grants to your favorite charities.
• Ability to transfer highly appreciated assets, benefit from an income tax deduction, avoid capital gains on the sale, and grow the proceeds for your own grantmaking and even to leave a legacy for children and grandchildren to continue your philanthropic commitments.
• Request that checks from your fund be sent to charities in your name or anonymously, depending on each situation.
How does the Community Foundation help?
When you establish a donor-advised fund at the Community Foundation, you are part of a community of giving and you have opportunities to collaborate with other donors who share similar interests. In addition, you’re supported in strategic grantmaking, family philanthropy, and opportunities to gain deep knowledge about local issues and nonprofits making a difference.
The team at the Community Foundation works with you to:
• Create and execute a document that establishes your fund and designates successor advisors, such as your children, to step into your shoes upon your death or incapacity.
• Learn more about the causes you care about and how to make the biggest impact.
• Discover ways to involve your family in your giving.
If you’re interested in learning more about donor-advised funds with the SouthCoast Community Foundation, contact Tricia Grime, Director of Philanthropy, at pgrime@southcoastcf.org