Establishing a Donor Advised Fund

daf

 

A Donor Advised Fund (DAF) offers you a unique giving opportunity. You can benefit from making charitable donations to your Donor Advised Fund in a way that is advantageous for your tax planning, yet maintain the ability to guide the distributions from your DAF to various charities over time.

Some of the advantages of a donor advised fund include:

  • A single donation may provide a significant tax deduction, while funds can be distributed over time
  • Ability to donate appreciated securities and avoid capital gains tax
  • A donation of a block of assets can benefit multiple charities
  • Creation of a legacy fund as opposed to a one-time gift
  • Separation of tax planning and charitable giving
  • Possibility of increased charitable giving through returns on invested assets
  • Simplicity and lower cost than operating a private foundation
  • Opportunity to appoint an individual(s) to recommend charitable grants from the DAF
  • Professional administration and investment management of the assets in the DAF
  • Professional record keeping of contributions as well as “due diligence” on grant recommendations from the DAF

How the Donor Advised Fund works:

  • Minimum initial contribution of $5,000
  • Subsequent contributions of $1,000 or more
  • Individual grants can be awarded for as little as $250
  • Distributions can be made only to IRS-qualified 501(c)(3) organizations
  • Donations can be made from:
    -  cash and securities
    -  bequests by will or through trusts
    -  by beneficiary designation in IRA’s, Qualified Retirement Plans, life insurance and annuities.
  • Donor Advised Fund contributions are irrevocable and become the property of The Community Fund
  • The ATC Community Fund retains authority for final approval of any grants that are made

The Adirondack Trust Company has committed to do the administration of The Community Fund at no charge. The Bank does charge a discounted investment management fee. The investment fee will be waived for the first year and thereafter assessed at an annual rate of ½ % (one-half percent) of the market value of the Fund’s assets.