Why contribute to a Donor Advised Fund rather than directly to a charity?
Donor Advised Funds provide a number of benefits that direct donations to a charity may not, including: • Ability to accept and process appreciated securities an which the donor does not have to pay capital gains tax. • Variety of investment options allowing the contribution to potentially grow over time. • Capacity to receive one block of securities that can benefit multiple charities. • Creation of a legacy versus providing a one time gift. • Separation of tax planning and charitable giving, donor receives tax deduction when contribution is made, but grants to charity can be made later. • Simplicity, a single contribution can benefit multiple charities while only requiring one tax substantiation letter.
