Donor Advised Philanthropic Funds

Donor advised philanthropic funds are best described as charitable savings accounts because they allow the donor to set aside tax-deductible dollars now and enjoy tax-free investment growth for future philanthropy. Additionally, donor advised philanthropic funds allow the donor and their family members to be active participants in the process of allocating resources to meet a donor’s charitable giving needs.

The fund generally bears the name of the donor or family. The donor and designated individual(s) can offer recommendations for distribution of the fund’s income as well as its principal to charitable organizations whose purposes are consistent with that of the Foundation. During the life of the donor or designated individual(s), the initial and subsequent gifts are maintained as a component fund of the Foundation. When the fund terminates, the assets become a part of the Jewish Federation’s Unrestricted Endowment Fund unless
otherwise specified by the donor(s).

A donor advised philanthropic fund provides the donor flexibility and an opportunity to create an enduring gift without the management responsibilities, administrative expense, and burdensome regulatory requirements connected with a private family foundation. A donor advised philanthropic fund can be created with a minimum gift of $10,000. Any asset can be used to create a fund of this nature. Gifts of cash and securities are most often used to create these funds.

Benefits of donor advised philanthropic funds:

• You are able to recommend support for causes that interest you now and in the future.
• You may make grants from both income and principal.
• You are eligible for an immediate tax deduction for all amounts contributed to the fund.
• You pay no tax on the income generated by the fund.

Do you still have qusetions about any of our philanthropic funds? Please visit our Question and Answer section for more information.