DONOR ADVISED FUNDS

Cash Annual Pledge

What is it

A Donor-Advised Fund, or DAF, is a philanthropic vehicle the Northshore Schools Foundation as a 501©3 organization supports. DAFs have become an increasingly popular way to manage charitable giving. These funds allow charitably-inclined individuals, families, and businesses to make tax-deductible charitable donations of cash, publicly-traded stock, and, in some cases, certain illiquid assets.

How Does it work


An easy way to think about a donor-advised fund is like a charitable savings account: a donor contributes to the fund they have opened with a fiduciary as frequently as they like with various kinds of assets and then recommend grants to the Northshore Schools Foundation when they choose.

Benefits


Donors receive an immediate tax deduction when they make a charitable contribution to a donor-advised fund. Deductions include up to 50% of adjusted gross income (AGI) for gifts of cash and up to 30% of AGI for gifts of appreciated securities, mutual funds, real estate and other assets. There is a five-year carry-forward deduction on gifts that exceed AGI limits. Recipients receive the full value of the asset at the time of receipt.

Donating Appreciated Stock: A Case Study
There are also tax advantages when contributing specific assets, like long-term appreciated securities. By donating appreciated stock held for more than one year to a donor-advised fund, philanthropists can avoid or reduce capital gains taxes. In the hypothetical example below, a donor has $100,000 in long-term appreciated stock and its original purchase price [cost basis] was $10,000:

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This hypothetical example reflects tax-savings as of 12/31/12. It assumes a 35% income tax rate and a 15% long-term capital gains rate. Using a donor-advised fund, this donor would give more to charity and pay less in taxes.

Giving Vehicle Comparison

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Next Steps


Please contact us today on how we can help you with your next steps.

Please note that no information on this website should be considered as the rendering of legal, accounting or other professional advice. Please consult your personal tax and financial advisors before implementing a planned gift to charity, including the Northshore Schools Foundation. These investment options may have specific consequences for your estate planning. As always, we would be pleased to discuss in confidence how your gift can impact Northshore students.