donor-advised funds
SUPPORT AFHU Through Your Donor Advised Fund
Consider supporting AFHU as we continue to transform lives through knowledge.
What are donor-advised funds?
Donor-advised funds (DAFs) are philanthropic accounts established at a sponsoring organization, allowing individuals, families, or organizations to make contributions and receive an immediate tax deduction. Once funds are deposited, donors can recommend how the money is invested and advise on distributions to qualified charities over time, offering flexibility in charitable giving. DAFs simplify record-keeping, as the sponsoring organization manages administrative tasks and ensures compliance with regulations. They also encourage family involvement in decision-making, promoting a culture of giving. By accepting various asset types, DAFs enable more efficient and personalized philanthropy while maximizing tax benefits.
HOW DO DONOR-ADVISED FUNDS WORK?
In five simple steps, essentially:
1. A Contribution is Made: An individual or entity donates money to a sponsoring charitable organization to create a DAF. This person becomes the “donor advisor.”
2. Allocating Funds: The sponsoring organization places the donation into the DAF, which the donor can name (e.g., “The John Doe Fund”).
3. Investment Management: The Donor retains advisory privileges over the investment allocation for the DAF. Since the assets in the DAF are owned by the sponsoring organization, any investment growth is tax-free. The investment options available vary by the sponsoring organization.
4. Grant Recommendations: The Donor has advisory privileges over the grants made from the DAF. Typically, grants may only be recommended to IRS-qualified 501(c)(3) or 509(a) public charities.
5. Fund Distribution: Once approved, the sponsoring organization sends the funds to the chosen charity via check or electronic transfer.
Main advantages of a donor-advised fund
Simplicity: The DAF sponsor handles all recordkeeping, disbursements, and tax receipts.
Flexibility: The timing of your tax deduction can be separate from your charitable decision-making.
Tax efficiency: Contributions are tax-deductible, and any investment growth in the DAF is tax-free. It is also easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support several charities from one block of stock.
Family legacy: A DAF is a powerful way to build or continue a tradition of family philanthropy.
No start-up costs: There is no cost to establish a donor-advised fund. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).*
No transaction fees: Once approved, 100% of your recommended grant goes to your qualified public charity of choice.
Privacy if desired: Donors may choose to remain anonymous to the grant recipient.
If you have any questions, please don’t hesitate to get in touch with us at [email protected].
AFHU GIFT ANNUITY
By establishing an AFHU Hebrew University Gift Annuity, you receive a high lifetime return, tax deductions, and annuity payments that are substantially tax-free. Equally important, your annuity supports the Hebrew University of Jerusalem, enabling the university to conduct pioneering research and meet global challenges in future years.
* Gift annuities not currently offered in California
AFHU BEQUESTS
Your generosity cultivates prosperity. A gift from your estate will help propel cutting-edge medical research, spur innovation in technology, and create a more sustainable world for generations to come. These planned gifts can also achieve effective estate and tax planning for philanthropic individuals. For more information on all planned giving opportunities, please use the form below or contact us via email.
AFHU GIFT CALCULATOR
TIPS FOR
ESTATE PLANNING
Tax Law Changes for 2021 and Estate Planning with an IRA in Light of the Elimination of the “Stretch”
Inherited retirement account distributions must now be taken within 10 years and the holder can no longer stretch out the withdrawals and required tax payments on each distribution over the beneficiary’s life expectancy. Thus, the annual amounts payable to heirs who inherit the IRA will be larger and the tax costs greater.
