Are you looking at making a large donation to The Church of Jesus Christ of Latter-day Saints? If so a new type of fund being touted by LDS Philanthropies may be for you. The new way to donate is called a “donor advised fund” (DAF). Here are some quick answers:
What is a DAF?
Essentially a DAF is a temporary place to store charitable contributions.
What are the advantages of a DAF?
The main advantages of Donor Advised Funds are timing and flexibility. Say you want to donate now for tax reasons, but have not yet decided exactly where you want your money to go. Placing your money in a DAF is like donating to a charity for tax purposes. You or your children then get to decide where that money goes over time. Donating to a DAF can also simplify taxes because you do not need to enumerate donations to every separate charity you donate to from the fund.
What are the disadvantages of a DAF?
You reduce your flexibility over giving to a private foundation, because at least 60% of funds donated to a DAF must go to the charity that manages that DAF. Though in cases like LDS Philanthropies, this still allows many different options to donate.
How much money is required to begin a DAF?
A DAF is primarily for large donations. A minimum of $5,000 is required to start a DAF.
How do I start?
If a DAF seems right for your circumstances contact the staff at LDS Philanthropies at [email protected]
For more information you can visit LDS Philanthropies Donor Advised Fund page here. Or watch this brief YouTube video.