Why
a Donor Advised Fund
.......rather than give directly to charity
Donate
now, decide later
A contribution to AEF separates the tax event from the grantmaking event.
You recommend grants to charities on your own timetable thus reducing
year-end pressures to select one or more charities to support.
Facilitate
special asset considerations
Not all charities accept or have the knowledge or capacity to accept gifts
of stock and other appreciated assets. Your Donor Advised Fund provides
you the maximum deduction allowed by law, and AEF has the expertise to
accept the widest array of assets.
Make
the most of your charitable dollars
You or your advisor can recommend the investment strategy for your contributions
to your Donor Advised Fund. This eliminates the concern about how charities
manage or mismanage investments. Any growth in assets is tax-free which
provides the potential for greater charitable gifts.
Reduce
recordkeeping frustrations
A Donor Advised Fund account provides consolidated reporting and record
keeping. You can make grants to multiple charities and you will need only
one tax substantiation letter (for each contribution to the account).
You can also review your history of grantmaking online before making future
gifts.
Leave
a lasting legacy
Your Donor Advised Fund can establish an enduring family legacy for philanthropy.
Your family can continue involvement in grantmaking and investments by
naming successor advisors to your account.
Provide
for accountability
It is important to match the size of the contribution to the capacity
of the charity. Capacity is a term that encompasses size, administrative
capability, investment sophistication, stability, and accountability of
the board. Are the charity's administrative expenses reasonable? Does
the charity have the sophistication to use a large gift effectively?
Large grants
can be like a heavy rock dropped into the bottom of a small boat. Many
small charities have become divided over large contributions due to the
lack of a clear strategic plan, clear policies, and investment experience.
Conversely, some larger charities treat contributions as "free money"
and use them to pay for fundraising and administrative expenses, which
is typically not what the donor intended.
Giving through
an independent intermediary charity such as AEF is a flexible way to provide
long-term support for favorite causes. AEF, as the independent intermediary
can donate capital and/or income to the worthy charities at your recommendation.
That way the capital is well managed by a responsible entity and the work
of the operating charities is supported.
Need
help?
Give us a call. If we don’t know the answer to your question, we
can probably point you in the right direction. Contact Phil Tobin, President,
at 1-330-655-7552.
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