AN EASY WAY TO GIVE TO CHARITIES

By W. Umber

Ask your financial advisor about a Donor Advised Fund (DAF) also known as a Charitable Giving Fund.  These accounts are setup through the financial services firm of your choice (Fidelity, Ameriprise, USAA, etc.).   You can fund this account with cash, stock, or other assets such as IRA minimum distributions, and you recommend an investment strategy once the assets are irrevocably transferred to the DAF.  The tax deduction for the charitable donation is taken at the time the assets are transferred into the DAF. Assets can continue to grow in value (tax free) depending on the investments you choose.  There may be other tax benefits depending on your situation.

Once the DAF is funded, you recommend “grants” or donations to your charity.  You can give anonymously, in memory of someone, or in support of specific projects.  The grant is made directly to the charity—no credit cards, checks, or websites to sign up for!  You will have a permanent record of the gifts you have made through the fund.

Essentially, this is like having a mini-foundation that you fund and control.  Check with your financial advisor to see if this is a good strategy for you, and don’t forget that you can donate to the Museum of the American Military Family through your Donor Advised Fund!



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