Giving Compass’ Take:
• Donor-advised funds (DAFs) have many benefits for individual donors, but most might not be aware of them. Here is a list of six advantages of DAFs.
• How do donor advised funds differ from other charitable giving vehicles?
Most financial advisors, attorneys, and CPAs know the benefits of using a donor-advised fund (DAF). However, DAFs are still often underutilized by the public. While many may have used DAFs for large net worth clients a few decades ago, DAFs are still a useful tool which many people can use to help grow their generosity.
Here is a short list you can use to show clients the benefits of using a DAF to grow their giving with less hassle:
- Anyone can open a DAF online in a matter of minutes, and The Signatry requires no minimum deposit or balance upon starting a fund.
- Monthly costs are very low, allowing even modest donors to reap significant tax benefits.
- Online granting allows clients to seamlessly give to their favorite charities with ease (even from the pew or banquet table).
- Statistics show that giving increases when using a DAF. Since the client has already designated funds to charity by putting money in the DAF, he or she can become more intentional about giving.
- A donor does not have to file Form 990 for the IRS. Furthermore, a donor only has to manage a single charitable receipt during tax season.
- Online tools make it easy to access new charities and trends. Clients can track their giving and set giving goals/milestones.
Read the full article about benefits of DAFs by Evan Lange at The Signatry.
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If you are interested in Philanthropy, please see these relevant Issue Funds, Charitable Organizations or Projects where you can get involved.