The benefits of using a donor advised fund are strong and, with the new tax laws, are expected to grow in appeal to strategic donors. They are far easier to establish than a private foundation and allow you to support The Haverford School with relatively small amounts of money.
When you open a donor advised funds (DAF), you are creating a separate entity with the sole purpose of using the assets undermanagement to support qualified charities.
You can fund it by irrevocably contributing assets such as cash, appreciated stock, insurance proceeds, or various other forms of capital. Given that your DAF is a separate entity, you can take an immediate tax deduction for the amount of the gift.
As advisor to the fund, you can elect to manage the investments personally or choose to have an investment advisor manage the portfolio.
The two primary avenues of supporting Haverford with your donor advised fund are through a beneficiary designation and recommending grants.
By assigning Haverford or other charitable organizations as a beneficiary, you are ensuring that when the DAF ceases to have an advisor the assets in the account get transferred to Haverford.
While you or your assigned successor(s) are advising the fund, you can recommend grants from the fund to support Haverford or other charitable organizations.
With a low barrier to entry and multiple ways to create charitable impact, DAFs are a great strategy for charitable giving. If you have questions about setting one up, or want more information please contact The Haverford School.