Should Your Charitable Giving Include a Donor-Advised Fund?

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The National Philanthropic Trust shares in its 2018 Donor-Advised Fund Report that individual donor-advised funds (DAFs), which are administered by a charitable sponsor, are the fastest-growing giving vehicle in philanthropy.

In 2018, Anthony L. (Larry) and Lynda Danna, longtime members of McKendree UMC in Lawrenceville, established a DAF with the Georgia United Methodist Foundation.

 “The DAF helped me when I had to take my first required minimum distribution when I turned age 70 ½. It offers flexibility on the donation and disbursement sides. I get a tax deduction one year, but have the flexibility to bridge our giving over time,” says Larry Danna. “The DAF simplifies our giving. Although we support other ministries, our main giving is to the Church. Our philosophy is to: Give to God first, then save money for the future second, and then live on the rest third. We come last, not first.”

How Does a DAF Work?

  • You make an irrevocable gift of at least $10,000 in either cash or appreciated securities to GUMF.
  • By front-loading several years of donations into a single tax year, you may realize the tax benefits from itemized deductions while maintaining the freedom to make charitable gifts over time.
  • GUMF manages and invests the funds for tax-free growth over time.
  • You can then recommend grants from these funds to your church or favorite qualified charitable organizations.
  • The minimum grant recommendation is $500.

Is a DAF Right for You?

If you expect to receive a financial windfall or want to consolidate your family’s charitable giving into a single fund, a DAF may be right for you.

For more information, please contact Nancy Young, GUMF Vice President of Development, at 678-708-6601 or nyoung@gumf.org.