Make a gift to the St. Louis Health Equipment Lending Program through your DONOR ADVISED FUND today! Make a lasting impact.

 

A donor advised fund (DAF) allows individuals to make a charitable contribution, receive an immediate tax deduction, and then distribute the funds to charities of their choice over time, essentially letting them "give when they want" by investing the money in the meantime and maximizing their tax benefits by claiming the deduction in the year of the contribution; this provides flexibility in choosing which charities to support and when to make the donations while allowing the funds to grow tax-free. 

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Key benefits of a donor advised fund:

• Immediate Tax Deduction:

  When you contribute to a DAF, you can claim the full charitable deduction on your taxes in the year you make the contribution, even if you don't distribute the funds to charities right away. 

• Investment Growth:

  The money in your DAF can be invested and grow tax-free until you decide to distribute it to charities. 

• Flexibility in Giving:

  You can choose which charities to support and when to make grants from your DAF, allowing you to research and strategically allocate your charitable giving over time. 

• Ability to Contribute Various Assets:

  You can donate a variety of assets to a DAF, including cash, stocks, bonds, and other appreciated securities, potentially avoiding capital gains taxes on the asset appreciation. 

• Estate Planning Tool:

  You can designate beneficiaries to receive the remaining funds in your DAF after your death, incorporating charitable giving into your estate plan. 

How a Donor Advised Fund Works:

1. Open an Account:

   You open a DAF account with a sponsoring public charity, like a brokerage firm or community foundation. 

2. Make a Contribution:

   You contribute cash or other assets to your DAF, which gives you an immediate tax deduction. 

3. Investment Growth:

   The funds in your DAF are invested and can grow tax-free. 

4. Grant Recommendations:

   When you are ready to give, you recommend grants to qualified charities from your DAF account. 

Important Considerations:

• Sponsor Fees: Some DAF sponsors may charge small administrative fees. 

• Distribution Guidelines: There may be requirements regarding how frequently you need to distribute funds from your DAF. 

• Consult a Tax Advisor: Before opening a DAF, it's important to consult with a tax professional to ensure it aligns with your financial situation and charitable goals. 

Learn more about ways to give to the St. Louis Heath Equipment Lending Program or other qualified charitable organizations. Visit here.