You’ve probably heard the term donor-advised fund (DAF) in this newsletter, but do you really know what a DAF is, and how it can be a personal financial planning tool? A DAF is a charitable savings account that allows you to donate to charity. But it can also be a tax saving vehicle, especially if you open one with Atlanta Jewish Foundation before December 31, 2021.
Evi Reznick opened a DAF with Atlanta Jewish Foundation in 2013 and is a huge fan. “I love, love, love Atlanta Jewish Foundation and my donor-advised fund. It puts me in charge of all my charitable giving and makes record-keeping simple. A lot of my giving is local and Jewish. For small nonprofit agencies, it costs money to process an $18 check. With my DAF, the funds go directly to the organization, and I do not have to mail anything. Cindy Weik at the Foundation takes care of it. And the tax benefits can be substantial.”
Another great reason to open a DAF is because you can invest in your fund without needing to immediately designate charitable recipients. This allows you to receive a tax benefit the same year you fund your DAF. The money deposited in your DAF is invested and can grow tax-free until you provide instructions for where you want to make gifts to qualifying organizations.
No wonder donor-advised funds are one of the most popular investments offered by Atlanta Jewish Foundation! If you don’t already have a DAF, the extension of the CARES Act makes the end of 2021 an optimal time to establish one with Atlanta Jewish Foundation. Talk it over with your financial advisor or contact Cindy Weik, Philanthropic Services Senior Associate, to start a discussion.
