By: Barry G. Allen- President & CEO
Giving through donor-advised funds (DAF) is surging in popularity these days, especially with the strong stock market, which has resulted in capital appreciation on which a capital gains tax will be owed when the securities are sold. Giving through a DAF allows you to give the appreciated security, or cash, avoid the capital gains tax and receive an immediate tax deduction without specifying at the time of the gift the charity or charities you want to benefit. The specific charity or charities can be determined at a later date.
In addition to spontaneous giving opportunities, a DAF also can be used for strategic gift planning and for helping you make giving a multi-generational family affair. Many donors use a DAF in anticipation of selling a business or a business interest. It’s very much like establishing your own private foundation but without the hassle and expense.
Even a business can establish a corporate DAF. Stewardship is not limited to individuals and families. Oftentimes business owners and corporations feel the same “to give back” as individuals and families feel.
The KBF has been offering the DAF option since 1993. Those who have utilized this option have found it to be most beneficial. Rather than writing multiple checks and tracking numerous receipts, you only need the receipt you receive from the KBF. You can empower children or grandchildren to participate in the “advisory role” to provide them hands-on experience in stewardship decision-making. The DAF ultimately can become an irrevocable, permanent endowment fund as a lasting legacy of your stewardship through the cause(s) near and dear to you. The DAF facilitates you taking advantage of the tax benefits available to you without the administrative burdens and expense of a private foundation. And, last but not least, you receive the beneficial assistance of our professional staff to maximize the impact of your giving.
Don’t wait! Act now! Call Laurie Valentine or me toll free for assistance in establishing a DAF for you, your family or your business.
For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533
The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.