Use the giving power of a private foundation.
Donor advised funds
What is a Donor-Advised Fund?
A Donor-Advised Fund, or DAF, is a giving vehicle established at a public charity. It allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time. Donors can contribute to the fund as frequently as they like and then recommend grants to their favorite charities whenever they make sense.
You make an irrevocable contribution of personal assets, including cash, stock, real estate, and more.
You immediately receive the maximum tax deduction that the IRS allows.
You name your donor-advised fund account, advisors, and any successors or charitable beneficiaries.
Your contribution is placed in a donor-advised fund account where it can be invested and grow tax-free.
At any time afterward, you can recommend grants from your account to qualified charities.
A DAF gives you flexibility.
A DAF gives you the flexibility to recommend how much and how often money is granted to the Blue Mountain Humane Society and other charities.
You transfer cash or other assets to a tax-exempt sponsoring organization such as the Blue Mountain Community Foundation. You can then recommend—but not direct—how much and how often money is granted. Besides, you avoid the cost and complexities of managing a private foundation.
In return, you qualify for a federal income tax charitable deduction when you contribute to the account. This also allows for a centralized giving and record-keeping system in one location.
Here’s how it works.
Linda and Karen want to give their money where it has the most significant impact in their Walla Walla community. They establish a $50,000 donor-advised fund (DAF) with the Blue Mountain Community Foundation.
The couple receives a federal income tax charitable deduction for the amount of the gift, with the advantage of getting all the time they need to decide which charities to support.
After researching the Walla Walla community needs with the Blue Mountain Community Foundation's staff, Linda and Karen recommend grants for the BMHS. The Blue Mountain Community Foundation presents Blue Mountain Humane Society with a check from the fund. Linda and Karen are excited to establish this personal legacy of giving.