If you’re anything like us, you’re passionate about the poverty-fighting, Christ-centered work of numerous organizations worldwide. We believe that Kingdom work takes many different forms! But giving to each organization individually can be time-consuming.
If you’ve ever longed for a simple way to support multiple organizations from one account, a personal giving fund, known as a donor-advised fund (DAF), can be a helpful option to consider.
A DAF allows you to set aside money or assets, receive immediate tax benefits, and control when and where you give. Once set up, DAFs streamline the process so you can give with ease.
“A generous person will prosper; whoever refreshes others will be refreshed” (Proverbs 11:25).
How DAFs work
- Open and fund your donor-advised fund. In addition to cash, you can subsidize your account with marketable assets including appreciated securities, real estate, stocks, or business interests.
- Grow your account. Due to recent tax law changes, DAFs often carry graduated options to grow your account tax-free.
- Give. Whenever you wish to bless a nonprofit from your DAF, simply recommend a grant from your account and the funds will be sent to support their work.
Donor-advised funds offer:
- Flexibility: Simply fund your account, then recommend charitable grants whenever you wish.
- Privacy: You can make gifts anonymously through a DAF and delegate part of your giving to other family members if you prefer.
- Legacy: DAFs can be set up to provide ongoing support for an organization after your lifetime and for generations to come.
- Simplicity: You can name your DAF as a beneficiary in your will, then update the list of charities who benefit without having to update your will.
- Potential tax advantages: In addition to receiving an immediate tax deduction, your invested assets will grow tax-free. You can also avoid capital gains on donated securities to increase your giving potential.
- Stewardship: You can give financially with a minimal investment of your time—and giving to nonprofit organizations ensures you’re making an impact that will last for generations.
Check out HOPE’s legacy giving options to learn more about how you can support HOPE’s work over the long term. To discuss how a DAF could contribute to HOPE’s work around the world, contact a HOPE representative in your region.
This blog post has been adapted with permission from Money for Ministry’s website. This material has been prepared to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice. You should consult with your own attorney, CPA, or other advisor regarding your specific circumstance.
