Gifts Through a Donor Advised Fund

The benefits of using a donor advised fund are strong and, with the new tax laws, are expected to grow in appeal to strategic donors. They are often far easier to establish than a private foundation and allow you to support the American Foundation for the Blind with a gift of any amount that meets your DAF administrator's minimum.

The American Foundation for the Blind

1108 Third Ave Suite 200, Huntingdon, WV 25701

Tax ID (EIN): 13-5562161

How does it work?

When you open a donor advised funds (DAF), you are creating a separate entity with the sole purpose of using the assets under management to support qualified charities.

You can fund it by irrevocably contributing assets such as cash, appreciated stock, insurance proceeds, or various other forms of capital. Given that your DAF is a separate entity, you can take an immediate tax deduction for the amount of the gift.

As advisor to the fund, you can elect to manage the investments personally or choose to have an investment advisor manage the portfolio.

The two primary avenues of supporting AFB with your donor advised fund are through a beneficiary designation and recommending grants.

Beneficiary

By assigning AFB or other charitable organizations as a beneficiary, you are ensuring that when the DAF ceases to have an advisor the assets in the account get transferred to AFB.

Grants

While you or your assigned successor(s) are advising the fund, you can recommend grants from the fund to support AFB or other charitable organizations.

What are the Benefits?

  • Receive an immediate deduction on your taxes.
  • Assets in the fund grow tax free.
  • Easier, and less expensive than establishing a private foundation.
  • Allows you to get started with a gift of any amount at or above the DAF administrator's minimum.
  • Tax smart for those using a "lumping" strategy under the new tax laws.

With a low barrier to entry and multiple ways to create charitable impact, DAFs are a great strategy for charitable giving. If you have questions about setting one up, or want more information please contact the American Foundation for the Blind.