It’s Almost DAF Day!

October 9 is national Donor Advised Fund Day. Who knew?! It seems there’s a national day set aside for just about everything these days. (My personal favorite is Talk Like a Pirate Day, but I digress.)

Americans have always been exceptionally generous, and we carry out our philanthropy in many different ways. We donate money, we make food, we arrange fundraisers, we volunteer our time. Some of us even set up charities or charitable trusts – both of which our office can assist with.

Many people are not aware, however, that there is an easy-to-use charitable-giving tool that provides significant benefits, but for which you don’t need an attorney. It is a donor advised fund, or DAF.

DAFs can be set up through many charitable organizations, including community foundations and the charitable arms of investment firms. They can be opened and funded with your donations while you are living, or you can direct in your Will or Trust that a DAF be established and funded at your death.

You can contribute just about any asset to your DAF. In most cases, you are entitled to take an immediate charitable deduction for your donation. The contributed assets will be invested by the custodial organization holding your DAF and then distributed, over time, to charities recommended by you. Growth is tax free, which enables you to leverage your charitable giving.

DAFs are growing in popularity due in large part to their flexibility and the ease in which they can be set up. We still prepare charitable trusts in the right circumstances, but often we find that a DAF is the better fit. If you would like to explore how to best support the charities you love, the estate planning attorneys at Wright Beamer would be pleased to speak with you. Call us at 248.477.6300.