As we enter the busy holiday season, many people are also starting to look at tax planning and making decisions about year-end charitable giving. The Yampa Valley Community Foundation is here as a resource for donors to become aware of different giving opportunities in the Yampa Valley and connect people who care with causes that matter to them.
The Yampa Valley Community Foundation also offers donors the option to create a Donor-Advised Fund. If you have little time to review the charitable requests you are getting, or simply don’t have the time to make decisions about your charitable giving at this busy time of year, a Donor-Advised Fund might be the perfect tool for you.
A Donor-Advised Fund, or DAF, is a charitable fund that lets you make a donation now, get tax acknowledgment for the full amount of the donation in this calendar year, then make grants to charitable organizations out of the fund now or at a later time.
SOME BENEFITS OF DONOR ADVISED FUNDS
1) Maximize Potential Tax Benefits – As soon as you make a donation, you will get acknowledgment for the full amount of the donation as a charitable contribution, just as you would by donating to another nonprofit or charity.
2) Simplify Recordkeeping and Organization – With a DAF, you don’t have to keep track of every gift acknowledgment from every charity you support. You get a quarterly and year-end statement showing your charitable donations in one place. When you’re ready to support your favorite charity, you simply login to your account and recommend a grant to any IRS-qualified public charity.
3) We Make Granting Easy – Making grants or donations to nonprofits and charities from your DAF at YVCF is as easy as logging into your fund through our secure portal and making the request, or sending an email to the Donor Engagement Manager who will begin processing your request. YVCF has two grant cycles per month, distributing donations from DAF’s on the 10th and 25th each month.
4) Easily Contribute a Wide Range of Assets – Giving non-cash assets is sometimes more efficient and has benefits not received when giving via cash or credit cards, but it is difficult for many charities to accept these donations. Yampa Valley Community Foundation can process a donation into a DAF through a variety of assets including wire transfers, publicly traded securities or mutual fund shares, restricted stock and other more complicated assets such as real estate or hedge fund interests.
5) Invest Your Donation for Tax-Free Growth – Once you have funded your donor-advised fund, you may choose to participate in YVCF’s long term investment pool—potentially growing your account and providing you with more dollars to grant to charity.
6) A Financial Tool for Anyone – DAF’s are a financial tool that are attractive to not just high-net-worth people, but those who are younger or have more modest means. YVCF can open a new DAF with an initial minimum deposit of $5,000 and charge low administrative fees, all of which stay 100% local in supporting the important work of YVCF.