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A Donor-Advised Fund is a giving account established at a public charity or charitable sponsor. Charitable sponsors include single-issue organizations (e.g., Environmental Defense Fund), community foundations (e.g., San Antonio Area Foundation), and national DAFs, which are charitable funds associated with an investment firm (e.g., Charles Schwab).
When you make a charitable gift to your DAF, you receive an immediate tax deduction. Then, you can recommend donations from your DAF to your favorite charitable organization. When you donate cash or appreciated assets, these positions are sold and diversified even more, and you will not owe any taxes on the sale because the monies are already in a charitable fund.
When you give to The Hope Foundation through your DAF, you enable other donors at your sponsor to discover and support us, too. Often, nonprofits cannot directly register at a charitable sponsor. Rather, at least one donor must recommend a grant to that nonprofit before it is added to the sponsor’s database and visible to other DAF holders.
Please contact Mallory Glenn, Development Associate, at mallory@thehopefoundation.org or (734) 546-8434 if you have any questions about giving to Hope from your DAF.
P.S. Many people choose to give from their assets – stocks, gifts from their IRA, and grants from their Donor-Advised Funds – to see even larger tax savings.
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