OPINION: Year-End Strategies For Donor Advised Funds

by Susan “Sam” Boren, Board Member and Donor Advised Fund Holder, Charitable Foundation of the Islands

Between now and the end of the year is the perfect time to open a new Donor Advised Fund (DAF), or to make gifts from your existing DAF. As you are considering year-end tax planning, donating appreciated stock to a new donor-advised fund is a great way to (1) establish a fund for your strategic philanthropy and (2) proactively manage your tax liability. Given the recent stock market strength, thinning portfolios by gifting appreciated stock is a timely thing to do.

A Donor Advised Fund gives you flexibility to make charitable gifts throughout the year to eligible 501(C)3 organizations. This year, in particular, needs are greater than ever, as government funding has been withdrawn from many social service agencies, public media, research programs, international aid programs, and education. A large funding gap has created the opportunity for philanthropists to use DAF assets strategically and urgently.

Unlike private foundations, DAF’s do not have a legal minimum payout. However, with over $250 billion sitting in DAF’s, isn’t it time to ‘get off your assets’. If you already have a DAF, you’ve already received the tax advantage available to you, and DAF balances are sitting idle when they could be gifted to support non-profit organizations struggling to meet the needs of our communities. Please consider stepping up to fund the causes you care about. They need you now more than ever.

Whether you have a DAF with Charitable Foundation of the Islands or a bank or advisor like Fidelity, you have the opportunity to make transformational gifts before year’s end. Can you imagine what the impact would be if donors decided to gift just 10% of the $250 billion held in DAF accounts? It would go a long way to bridging the gap created by this moment in time, when so many organizations have lost funding.

This year-end, give yourself the gift of knowing you have done something really important…give away DAF assets so others can thrive.

To learn more about Donor Advised Funds at the Charitable Foundation of the Islands, contact CFI at info@sancapcfi.org.

About Charitable Foundation of the Islands (MyCFI.org)
The mission of the Charitable Foundation of the Islands (CFI) is to inspire philanthropy, leadership, and collaboration for the vitality of the Island community. CFI has served the Sanibel and Captiva communities since the 1990s through the Francis Bailey Society and was officially incorporated as a 501(c)(3) organization in 2011.