A Donor Advised Fund is similar to a brokerage account, but instead of investing for your future, you are investing in ministry by giving to the causes closest to your heart. You make a tax-deductible donation to your Fund and then recommend grants from that Fund over time.
• Open a donor advised fund administered by a public charity. Many mutual fund groups and foundations have established these funds.
• Make a contribution to the Fund. You can generally take an immediate tax deduction for your gift and you can contribute as often as you like.
• Select an investment portfolio that will allow your Fund the potential to grow tax-free.
• Recommend grants to charities from your Fund. You can take months – even years – to decide which causes to support. The Fund custodian will send the grant checks to the charity for you.
• You can let your gifts grow while you decide where they should go
• Give with true anonymity
• Deduct gifts this year, recommend grant distributions next year
• Make one gift and recommend grants to several organizations
• Avoid having to track countless gift receipts