08 Aug What are DAFs?
If you manage your family’s finances and investment portfolio, you may be quite familiar with online tools and check your portfolio’s ups and downs on a regular, if not daily, basis.
But are you aware of Donor Advised Funds as a super-smart way to handle your charitable giving?
What is a Donor Advised Fund, or DAF? According to investment firm Fidelity, it’s a charitable investment account for the sole purpose of supporting charitable organizations you care about.
With employees in many companies receiving stock as a bonus or incentive, DAFs can be a smart way to diversify and avoid paying taxes on dividends. And you get to choose where to give. Northshore Schools Foundation accepts gifts from DAFs and your DAF gift lets you put these resources to work right away, helping students and teachers in Northshore classrooms immediately.
When you contribute cash, securities or other assets to a donor-advised fund at a public charity, like charitable arms of firms like Fidelity or Charles Schwab, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth, and you can recommend grants to virtually any IRS-qualified public charity, including the Northshore Schools Foundation.
Many Northshore Schools Foundation supporters give from their DAFs and find it an easy, automated, electronic, and tax-advantaged way to support the foundation. A DAF helps you save on taxes and give more to teachers and students in Northshore schools today.
DAFs come in especially handy when you face paying steep taxes on vesting stock or capital gains. Each person’s tax situation is unique, so be sure to talk to your financial advisor or ask your tax preparer for more information on how DAFs might be an option for you.