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One Gift Satisfies All Charitable Giving Needs |
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Imagine writing one check to cover all your charitable giving while retaining the flexibility of designating how much could go to your favorite charities and reaping the benefits of earning tax-free investment growth while receiving a lucrative tax-deduction all on the same money! Enjoy this and much more by creating a donor advised fund at Tampa Orlando Pinellas (TOP) Jewish Foundation, Inc. “We wanted to get a better tax deduction for the gifts we make annually. By opening a donor advised fund at TOP we pre-paid our charitable giving for the next couple of years. By making one large gift we avoid itemizing and earn a better tax deduction this year. Plus, our money is earning more money, tax-free, for future charitable giving,” explains Orlando’s David and Pat Bornstein who established a donor advised fund at TOP Jewish Foundation. “We started a fund because we can fund the donor advised fund with cash, appreciated stocks or bonds, real estate or even via credit card so we can earn points or miles. It’s easy to make gifts to our favorite charities at anytime we want. We get personalized attention via tracking how and where we’re giving. TOP even takes care to ensure that our pledges are paid on time. TOP even works with charities we support to ensure we don’t get bills for gifts we already paid,” explains Orlando’s Allan Goldberg who with his wife Diane also established a donor advised fund at TOP Jewish Foundation. Many people fund their charity through gifts of cash. However, the gifting of appreciated assets can provide a better tax deduction. “I knew I was going to be selling my business. So TOP helped me structure the business sale so I can give more to charity while costing me less in taxes,” explains Val Denner of Orlando. Assets that are sometime difficult to cash-in or manage also provide an advantageous opportunity to give charity and earn a tax deduction. Israel Bonds can be difficult to cash in when mature. By donating them to TOP Jewish Foundation, a person can avoid the hassles sometimes associated with redeeming bonds, create and/or add to a charitable fund at the foundation that earns a tax-deduction and be used for charitable giving. Many donors feel that donor advised funds are basically like creating their our own private foundation but at a fraction of the cost. There are no legal and accounting fees when establishing a donor advised fund. There are even some better tax benefits and investment flexibility. “I like the investment choices and the flexibility of deciding how our charitable dollars might be invested. I can keep my money in a money market fund, an all bonds fund or a balanced fund providing some stock market exposure,” adds the Bornsteins. A donor advised philanthropic fund does not act like a mutual fund. They are more like philanthropic investments creating a charitable entity allowing the donor and their family members to be active participants in the process of allocating charitable dollars. These charitable dollars can be used to meet a donor’s charitable giving needs now and in the future. Grants from both income and principal can be made. Donors are eligible for an immediate tax deduction for all amounts contributed to the fund. The donor pays no tax on the income generated by the fund.
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