Harness the Giving Power of a Private Foundation
A donor advised fund, which is like a charitable savings account, gives you the flexibility to recommend how much and how often money is granted to FATE Foundation and other charities.
You transfer cash or other assets to a tax-exempt sponsoring organization such as a public foundation. You can then recommend-but not direct-how much and how often money is granted. In addition, you avoid the cost and complexities of managing a private foundation.
You can use a donor-advised fund to bunch multiple years’ worth of donations in a single year to receive maximum tax benefits for your charitable contributions. This also allows for a centralized giving and record-keeping system in one location.
Gifts to donor-advised funds are tax deductible, so you can combine two or three years of charitable contributions in one calendar year in order to exceed the standard deduction in that year. You can then use the assets in the donor-advised fund to consistently support your favorite charities, even in years when you take the standard deduction. Assets in your donor- advised fund are invested according to your preferences, so your charitable dollars can grow tax-free.
An Example of How It Works
Joe and Laura want to give back to their hometown by putting their money where it will do the most good. They establish a $25,000 donor advised fund with a community foundation.
The couple receives a federal income tax charitable deduction for the amount of the gift. They also get all the time they need to decide which charities to support.
After researching community needs with the foundation’s staff, Joe and Laura recommend grants for FATE Foundation (which they've supported for years) and the Animal Rescue League. The foundation presents the charities with checks from the Megan Fund, which Joe and Laura named in honor of their granddaughter. Joe and Laura are delighted to start this personal legacy of giving.