Year-End Benefits of Donor-Advised Funds

Wall Street Journal:
Donors Flocking to Donor-Advised Funds

According to a December 11 article in The Wall Street Journal, there has been a significant increase in the number of donors who are creating donor-advised funds or adding to their existing fund as a way to get the best bang for their charitable buck.

With the approaching “fiscal cliff,” there is a lot of uncertainty about what the tax rates might be in 2013 and there could be changes to capital gains taxes, estate taxes and potential additional limitations in the charitable deduction, especially for high-income earners.

Establishing a donor-advised fund (also known as a philanthropic fund) with The Foundation of the Greater Miami Jewish Federation by December 31 can help you maximize your tax benefits while making your charitable giving simple and stress-free.

• Set up or add to your existing fund by December 31 and you will receive an immediate income tax deduction. Then, take your time in determining which charities you would like to support. Even if you decide on a charity next year, you can still get an income tax deduction this year.

• The allowable tax deductions for a philanthropic fund are greater than those for a private foundation and any investment income grows tax-free.

• Pay no capital gains tax if you establish your fund using appreciating assets.

• Centralize your charitable giving - You recommend distributions to qualified public charities (like Federation, your synagogue, etc.) and The Foundation – your trusted philanthropic partner – handles all the processing statements and investment management.

You can establish a fund with a minimum contribution of $5,000 using cash, securities or other assets. Speak with your attorney or financial advisor today about the advantages of establishing a philanthropic fund.

Are you ready to get started? Please contact Jill Hagler, Principal Gifts Officer, at 786.866.8627 or [email protected].