Here Is How A Donor Advised Fund Works:
- Choose from among a wide range of assets types then make a contribution to a fund in the name of iGiftFund for the benefit (FBO) your Fund (i.e. Jones Family Foundation).
- The gift qualifies for immediate and maximum tax benefits.
- The assets are placed in an investment account which your investment advisor can manage and where growth is tax- free.
- You recommend grants to your favorite charities on your own schedule.
- The fund can go on as your family’s charitable legacy over successive generations.
- Immediate and maximum tax benefits.
- Simple and quick to setup – $5,000 minimum.
- iGiftFund handles the administration and IRS reporting.
- You can contribute a wide range of assets including cash, marketable securities, restricted and privately held stock, real estate, life insurance policies and other DAFs.
- Works well as the beneficiary of a bequest, an IRA, a Charitable Remainder Trust, a Charitable Lead Trust or life insurance proceeds.
- Can support any eligible charity in the country.
- An effective parenting or grandparenting tool to pass on values.
- iGiftFund offers a level of flexibility and personalization not available in most other programs.
Typical Donor Scenarios
A Donor Advised Fund can be a solution if you are:
- Experiencing an extraordinarily high-income year or approaching retirement.
- Struggling with potential taxes involved with selling a highly appreciated asset.
- Questioning how best to support several charities over a number of years through one gift.
- Seeking flexibility to change your charitable beneficiaries over time.
- Wanting to engage your spouse, children, and grandchildren in charitable giving as a way to pass on family values.
- Concerned about the time and complexity in gifting appreciated investment assets to more than one charity.
- Experiencing fluctuating income that makes it hard to maintain a steady level of giving.
- Concerned about the cost, complexity and lack of privacy of a private foundation.
- Concerned that a large gift might overwhelm your favorite charity.
You may consider a Donor Advised Fund if you:
- Want to ensure that you, or someone you love, will be remembered.
- Want to pass on the family values of giving to your children and grandchildren.
- Want to create your charitable legacy now and fund it while living and/or at the time of your death.
- Want the best tax benefits available.
- Appreciate creative solutions for tailoring your charitable legacy in simple, smart and meaningful ways.
- Want the assurance that your trusted advisor remains involved to ensure that your charitable legacy carries on over successive generations.
- Independence – iGiftFund is not affiliated with a financial service or mutual fund company and does not limit investments to proprietary pools of mutual funds.
- You can recommend that your investment advisor manage investments on your familiar platform.
- Experience – Phil Tobin has over 30 years of experience in Donor Advised Funds, arguably the longest in the industry.
- iGiftFund offers individualized, concierge-level service.
What’s next? – Five Easy Set-up Steps
- You, with the help of your advisor, complete iGiftFund’s Donor Advised Fund application found at www.iGiftfund.org/forms.
- iGiftFund completes and signs your advisor’s investment account application paperwork in the name of iGiftFund fbo (your Fund’s name) including your advisor’s investment advisory agreement, if applicable.
- Your advisor creates a new investment account on your preferred platform.
- You authorize the transfer of assets to the new iGiftFund fbo (your Fund’s name) investment account.
- iGiftFund sends you a gift acceptance letter and instructions on how to access DonorView (iGiftFund’s donor portal) where you can recommend grants.
Download our two page DAF Summary Handout as a resource for your clients here.