Donor Advised Funds
Donor Advised Funds are a great way to simplify your charitable giving. These funds are an excellent record keeping and tax planning tool. No professional fee is charged on Donor Advised Funds unless you choose an investment option for your fund.
Benefits of Donor Advised Funds:
- You can open the fund with a contribution in any amount. No minimum balance is required.
- You can recommend grants of $100 or more at any time from your fund to any public charity, house of worship or governmental entity.
- All gifts to your fund are tax deductible and your deduction happens in the year you make your gift to the fund, regardless of when the grants are distributed to your favorite organizations.
- Cash or appreciated assets are typical gifts used to open or add to a Donor Advised Fund. If you use appreciated assets, such as stock or mutual funds, you can avoid any capital gains while claiming a deduction for the full value of the asset donated.
- You can make donations to your fund, grant from your fund and view past grant history all online on this website.
- You will receive an annual statement and necessary paperwork for tax preparation, avoiding the hassle of looking for individual charitable receipts at annual tax planning time.
- You may create your Donor Advised Fund as an endowed fund or as fully expendable. You may designate successor advisors to recommend grants when you no longer are able to do so.
For many, a Donor Advised Fund serves as their family foundation. This chart illustrates the advantages of a Donor Advised Fund versus a Private Foundation.
To open a Donor Advised Fund, complete this form and LCF will create a two-page agreement and send it to you for your review.
Open a Fund
“I’m a raving fan of the work done at the Lincoln Community Foundation. Donor Advised Funds are extremely valuable planning tools for my clients who have a charitable heart and also the desire to be as tax-efficient as possible.”
—Jeff Johnson, CFP Executive Wealth Management