Donor Advised Funds (DAF)

One of the most satisfying aspects of philanthropy is for the donor to participate in the grant-making process. DAFs represent a unique opportunity to do just that and can be established with a minimum gift of $5,000. Under our DAF program, donors or their designees make recommendations for grants to qualified charities.

These funds support social service programs, education, the arts and many other sectarian and non-sectarian causes. Most importantly, they are a substantial source of support for our affiliating agencies, synagogues, special program grants throughout our community, the Foundation’s own Genesis Fund, additions to RJF’s Special Purpose Funds as well as for gifts to the Federation’s Annual Campaign.

Donor Advised Funds could help you simplify your giving all year-round—and for years to come.

DAFs offer immediate tax benefits.

It works like this: You can put a lump sum into a DAF and then have the fund provide grants to organizations of your choice at your own pace.  You get the maximum income tax deduction immediately, even if the assets aren’t distributed right away. You’ll also receive income tax-free growth of the assets in the fund, as well as the ability to carry forward any unused charitable income tax deduction for up to five years. In exchange, you relinquish ownership of the assets you donate, but you retain the right to advise how those assets should be distributed.

Tax payers looking for ways to exceed the higher standard deduction set by the 2017 tax law might consider pooling several years’ worth of charitable donations into a single contribution to a DAF.

DAFs organize your giving in one place.

Rather than practicing “checkbook philanthropy” by making donations to individual charities and requesting receipts from each, you can take much of paperwork out of the process through a DAF.

DAFs allow your contributions to grow.

A DAF gives you the ability to invest your contributions either for the long-term or short-term. That means the assets you’ve placed in the fund are professionally managed and have the potential to continue growing.

Ask your financial advisor for more information on how a DAF works, and contact the RJF office to explore how a DAF might help you meet your giving goals.

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