Give Through a Donor Advised Fund (DAF)
What is a Donor Advised Fund?
A Donor Advised Fund (DAF) is a charitable investment account that is used for the purpose of supporting charitable organizations that are important to you. It’s a simple way for individuals, families, and corporations to give to charity and receive an immediate tax deduction. Unlike private foundations, most DAFs can accept a wide array of assets, from cash to complex stocks or real estate.
How It Works:
- Start your DAF by making a tax-deductible donation to a public charity that sponsors a DAF program, like Fidelity Charitable, Schwab Charitable or National Philanthropic Trust.
- Decide how the donated money is invested (any investment growth is tax-free).
- Choose which public charities (like the Food Bank of South Jersey) you want to support with grants.
- Unlike private foundations, DAFs can accept a wide array of assets, from cash to complex stocks or real estate.
Benefits for You:
- It’s easy! The DAF sponsor handles all recordkeeping, disbursements, and tax receipts.
- A DAF is a powerful way to continue a tradition of family philanthropy.
- Contributions are tax-deductible, and any investment growth in the DAF is tax-free. It’s also easy to donate long-term appreciated securities, avoiding capital gains taxes and supporting multiple charities with one stock donation.
- There’s no cost to establish a donor-advised fund, but there usually is a minimum initial charitable contribution (typically $5,000 or more).
- No transaction fees! Once approved, 100% of your recommended grant goes to your chosen public charity, like the Food Bank.
Turn your DAF into healthy food!
The DAF Direct above can be used to designate FBSJ as your donation recipient. If your DAF institution is not available on this list, contact your financial advisor or if you need assistance setting up a DAF, please contact us at donations@foodbanksj.org or by phone at 856-662-4884 ext. 170.