A DAF allows donors to make a charitable contribution, receive a current year income tax deduction, and recommend grants from the fund over time to qualified nonprofits, such as the Craig Hospital Foundation.
DAFs play a major role in funding advancements led by nonprofit organizations. You may already know DAFs for their convenience, tax efficiency, and growth potential, but have you considered how you can support Craig Hospital through a gift from your DAF?
There are several ways to give through donor-advised funds:
- Make a one-time DAF donation
- Make an annual or monthly gift from your DAF
- Create an endowed fund
- Name the Craig Foundation as the beneficiary
How does a Donor-Advised Fund work?
- You make an irrevocable contribution of personal assets.
- You immediately receive the maximum tax deduction that the IRS allows.
- You name your donor-advised fund account, advisors, and any successors or charitable beneficiaries.
- Your contribution is placed into a donor-advised fund account where it can be invested and grow tax-free.
- At any time afterward, you can recommend grants from your account to qualified charities based on your donor intent and philanthropic objectives.
First created in the 1930s, donor-advised funds began to grow in visibility and popularity in the 1990’s. However, they were not formally recognized in the tax code until the Pension Protection Act of 2006.
Today, DAFs are philanthropy’s fast going vehicles, with grants from donor-advised funds accounting for approximately 10 percent of all charitable giving in the United States, representing a significant portion of total philanthropic donations.
Donors may open a DAF through a variety of sponsoring organizations, including mission-specific DAF organizations, community foundations, and financial institutions.
Our Tax ID is #23-7352287