Donor Advised Funds

Donor Advised Funds for Parkinson's Disease
 

 

A donor advised fund (DAF) is a charitable giving program that allows you to combine the most favorable tax benefits with the flexibility to make life better for people with Parkinson’s. 

Donor Advised Funds allow donors to put a large sum of money into a charitable investment account (getting an immediate tax deduction) and pay out donations to nonprofits over time.

They are an excellent way to simplify your charitable giving and facilitate your strategic philanthropic goals.

The Basics of DAFs

  • DAF accounts are held at entities such as financial institutions or community foundations. Examples include 
    • Commercial Organizations - Fidelity Charitable, Schwab Charitable, Vanguard Charitable, BNY Mellon, or private community foundations.
    • National Organizations - National Philanthropic Trust, American Endowment Foundation
    • Community Foundations - Local, religious-based, etc.
       
  • These agencies invest the money held in DAF accounts, so the value grows (tax-free).
     
  • It is easy to support causes you care about through a DAF:
    • Contribute funds to your DAF and receive a tax deduction
    • Recommend an amount be donated from your DAF to your favorite charities
    • The grant is issued by the agency directly to the nonprofit(s) you choose

Why consider a Donor Advised Fund?

  • Easy for donors to establish and use
  • Low or no minimums required to establish
  • Donors control when they want to grant money from the DAF to a nonprofit
  • You can make automatic recurring grants in the amount and frequency of your choice
  • Gifts are tax deductible as donations to public charities and earnings are exempt
  • DAFs allow families to collectively support the nonprofits they care about
  • You can name a nonprofit as the beneficiary of your DAF
  • Grants issued from your DAF may be eligible for a matching gift from your employer
  • Some employers may offer DAF contributions as a pre-tax benefit to employees

Can I donate illiquid or appreciated non-cash assets to a DAF?

Yes! Donors can convert illiquid assets or other complex gifts into cash through their DAF. In fact, direct donation of publicly traded securities or other illiquid gifts is one of the most common ways to fund a DAF. 

The benefits of this include:

  • Reducing tax burden in a windfall year, such as receiving an inheritance, selling a business, or experiencing strong market returns.
     
  • Reducing or eliminating capital gains - This is a particularly tax-efficient method because securities that have been held for more than one year can be donated at their fair market value, and are not subject to capital gains tax.

What types of non-cash assets can I donate to a DAF? 

Depending on your DAF agency, some types of eligible assets may include:

  • Publicly traded securities (stock, bonds, mutual funds)
  • Life Insurance
  • Retirement Assets
  • Real Estate
  • Privately held business interests
  • Private equity fund interests
  • Cryptocurrency
  • Fine Art and Collectibles 
  • IPO Stock
  • Oil and gas royalty interests

Confirm with your DAF holding agency for specific details and more information on what they will accept.

Already have a DAF?

Recommending a gift to the Parkinson's Foundation from your Donor Advised Fund is easy!

Simply click the button below, type in the name of your DAF holding agency, and you’ll be directed to their website where you can submit the request. Please note, you will be directed to an external website to complete your transaction. 

 

When you make a Donor Advised Fund gift, it is possible that the sponsoring organization will not share your information with us. Please send us a note at DonorServices@Parkinson.org or fill out this form when you have requested a grant from your DAF, so we can make sure to thank you and ensure that your gift goes where it is intended.

If you have any questions about making a tax-deductible gift to the Parkinson's Foundation through a DAF, please contact Kate Douglass at 305-537-9894 or KDouglass@Parkinson.org.

The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your benefits.

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