Donor Advised Funds Simplify Giving
As December 31 approaches, many philanthropically minded families sift through mountains of charitable appeals, trying to determine where their gifts can have the desired impact. The process can be challenging in the rush to disburse funds and gain tax advantages before the end of the year.
If this sounds familiar, now is the perfect time to establish a Donor Advised Fund (DAF) through The Foundation of the Greater Miami Jewish Federation. With a DAF, donors receive an immediate tax deduction and can then recommend gifts to any qualified 501(c)(3) charity (like Federation, a synagogue, university, hospital, etc.). After that, The Foundation does the work handling the distribution of funds, record-keeping and investment management. For many donors, this process makes charitable giving much easier to manage.
Mojdeh Khaghan Danial actively uses her family’s DAF to support community needs. She considers The Foundation “a trustworthy and excellent holding place for our philanthropy, because the funds are so well managed. The Foundation and Federation are very much a part of the fiber of Miami’s giving community, and it’s very gratifying to know that I can count on all the resources that The Foundation and Federation offer.”
The Danials are one of more than 250 individuals and families in Miami who have created DAFs with The Foundation, a trusted philanthropic partner in the community for 50 years. Currently, The Foundation manages more than $200 million in assets.
Donors can establish a DAF with as little as $5,000, using cash, securities or other appreciated assets. By creating a DAF before December 31, donors receive a charitable income tax deduction for the full fair market value of assets contributed, plus capital gains tax savings on the appreciation of securities held for more than one year.
Beyond the tax advantages, a DAF gives donors an excellent opportunity to pass on their Jewish values, said John M. Bussel, Chair of The Foundation.
“They can do this in ways that are just right for them. They can involve other family members if they want, and they can be as public or as private about their giving as they see fit,” Bussel said.
Soon, fund-holders will find it even easier to access the status of their DAF, thanks to a secure online system The Foundation will launch in the coming months. Through the system, users will be able to view fund balances and recent fund activities, recommend grant allocations, add to an existing fund, or even create a new fund – all with a few clicks.
“It’s very user-friendly,” said Danial, a Federation Board member who has previewed the site. “It allows me to see everything I need to see about my fund on screen. It’s an example of how The Foundation is progressive and sets the bar high, both for being trustworthy and for being donor friendly.”
Ready to get started with a Donor Advised Fund? Please contact your professional advisor or Jill Hagler, Foundation Principal Gifts Officer, at 786.866.8627 or [email protected].
