Giving through donor-advised funds (DAF) is surging in popularity these days especially when giving appreciated securities. Giving those through a donor-advised fund allows you to give the appreciated security, avoid the capital gains tax and receive an immediate tax deduction without specifying at the time of the gift the charity or charities you want to benefit. The specific charity or charities can be determined at a later date.
In addition to spontaneous giving opportunities, a DAF also can be used for strategic gift planning and helping you make giving a multi-generational family affair. Many donors use a DAF in anticipation of selling a business or a business interest. It’s very much like establishing your own private foundation but without the hassle and expense.
Even a business can establish a corporate DAF. Stewardship is not limited to individuals and families. Oftentimes business owners and corporations feel the same desire “to give back” as individuals and families feel.
The Kentucky Baptist Foundation has been offering the DAF option since 1993. Those who have utilized this option have found it to be most beneficial. Rather than writing multiple checks and tracking numerous receipts, you only need the receipt you receive from the KBF. You can empower children or grandchildren to participate in the “advisory role” to provide them hands-on experience in stewardship decision-making. The DAF ultimately can become an irrevocable, permanent endowment fund as a lasting legacy of your stewardship through the causes near and dear to your heart. The DAF facilitates you taking advantage of the tax benefits available to you without the administrative burdens and expenses of a private foundation. And, last but not least, you receive the beneficial assistance of the KBF staff at no cost to you.
Don’t wait! Call Austin Wilkerson, KBF trust counsel, at 502.489.3526 for assistance.
