Current Topics

What is a Donor-Advised Fund?

Donor-Advised Funds, also known as 501(C)(3) are recognized as a separately identified fund of account that is maintained and operated by a section 501(c)(3) or sponsoring organization. You might  contribute to an account and your charity receiving the contributions has legal control over it. The donor, however, retains advisory privileges with the distribution of funds and investment of assets in the account. This allows you to say, for example, that you would like for the money to go eventually towards new books, at the local teen center and the charity might do just that.

The idea is that you are investing into a fund and that money will go to the charity, while you get a tax break. There are pros and cons to this, however.

Pros and Cons

One pro is that you are usually eligible to take an immediate tax deduction. Another advantage is that you are supporting your legacy planning.

Cons are that any investment carries some kind of risk, so you might not get the profit margins that you had initially hoped.

After carefully deciding which charity you would like to consider, reach out to us and we can help you get on the right track.