Your heart is in the right place, but you might be doing it wrong.
Americans love charitable giving. About 69% of us regularly donate to organizations we truly believe in. The problem is, too many of us donate inefficiently or fail to maximize the impact of our giving by handing out cash.
Increasingly, goodhearted people are maximizing both the impact of their charitable donations and the immediate tax benefits they get by supporting charitable organizations through donor-advised funds.
Donor-advised funds give you the flexibility to grow and use your charitable funds and immediately enjoy end-of-year tax advantages from giving.
What is a Donor-Advised Fund?
Choosing a cause to get involved in can take a lot of time to contemplate. But by setting aside money for charity in a donor-advised fund (DAF), you don’t have to immediately decide how to use your money. DAF-sponsoring organizations like Charityvest allow you to set aside money now and immediately receive the tax benefits, while giving you time to choose the charities you want to support.
Here’s the deal: Donor-advised funds (DAFs) essentially act like investment accounts for charitable giving. You can contribute a variety of assets into a DAF – cash, stocks, cryptocurrencies, real estate, fine art and other assets.
Rather than donating a lump sum of money or donating cash periodically, a donor-advised fund account offers you the ability to sustain your charitable giving over time and grow the money you donate. That means you can have an even more significant impact on the charitable organizations you care about the most.
How a Donor-Advised Fund Works
You entrust your contributions to a DAF-sponsoring organization, such as Charityvest. These contributions are consigned for charity, and you can’t reclaim them for personal use.
The funds in your account can be invested tax-free to help grow your charitable contributions, much like an investment account.
You’ll get to advise how…