Philanthropists are busy with their private engagements and should get the much-needed support to enjoy their charitable missions. They should not strain with the administration work associated with privately owned foundations.
Donor-Advised Funds (DAFs) come in handy as a community foundation that handles all the administrative workload on behalf of the donors.
Donor-advised funds refer to charity accounts created by donors within an established community foundation. The community foundations comprise of a team of professionals who help you make your philanthropic goals a reality.
With the help of a philanthropic advisor, opening the DAFs is simple and straightforward. You only need to select an account name, and with the guidance, you can start giving.
The donations can be in various forms, such as tangible assets, cash, or stocks.
The community charity organization you choose can shrewdly invest your contributions, let them grow tax-free as they wait for a qualified charity to receive the grant.
4 Benefits of Opening a Donor Advised Funds Account
If you are a philanthropist and you are looking for a hassle-free arrangement of giving to charity, then DAFs could be what you need.
Many philanthropists choose Donor-advised funds over the other giving methods.
This method offers you much flexibility such that you can give as often as you wish without restrictions.
Apart from flexible giving, donors enjoy the freedom of contributing in various forms.
A donor-advised funds account is the best alternative for donors looking for giving opportunities without stringent regulations.
While it may not be convenient for everyone, below is a list of 4 significant benefits as to why you should consider it.
By opening a donor-advised fund account, you are guaranteed of the following benefits:
1. Tax deduction benefits
DAFs accounts are considered as a public charity, and holders qualify for tax deductions every time they contribute to the account.
2. Relieve you from the administrative workload
Giving to charity should be easy, affordable, and quick. And that’s what DAFs guarantee to the account holders.
Once you open a DAFs account, you can rest assured all the accounting and legal requirements are taken care of. You have the freedom to concentrate on giving entirely.
Importantly, you are not required to incur set-up or operations expenses.
1. You get the necessary philanthropic advice
When you contact a communal charity organization and express interest in opening a DAFs, you are matched with a charity adviser. The advisor offers you guidance to enable you to maximize your giving.
2. Your contributions are maximumly utilized for best charity course
When you entrust charity management organization to handle and execute your charity mission, they ensure every dollar you contribute is put to the right use.
They make wise investment decisions and grow your contribution to reach more charity organizations.
On the downside, the contributors don’t get total control over the administration of their contributed assets.
But, when you look at the above benefits, DAFs are the best over any other method of giving to charity.
Consider opening a DAFs account and enjoy the convenience of giving that you deserve.
Evie Mills is an Outreach Specialist at Anoodigital.com. She is also passionate about writing. Her key areas of interest are lifestyle, business, technology and home decor. In her free time, she loves listening to music and play with her cute dog.