What Is a Donor Advised Fund?
A Donor Advised Fund is a “charitable giving fund” that works much like a private foundation, but without the cost and red tape. One can establish a fund with The Cru Foundation with as little as $5,000 cash, stock, or other appreciated assets. The donor realizes tax benefits in the year of the donation. They can then advise The Cru Foundation to make distributions over time from the fund to the evangelical ministries of their choice.
Why Should I Consider a Donor Advised Fund?
Donor Advised Funds have many uses and applications. Here are some of the more common reasons that our Ministry Partners have demonstrated for establishing a Donor Advised Fund. You can make a year-end donation to take advantage of the tax deduction and then make your decisions about gifting from the fund during the next year.
If you should choose to give a gift anonymously or to protect your privacy you can do that through your Donor Advised Fund. It is simple to spread a large gift to your fund amongst multiple ministries and over a period of time. To streamline your planned giving, you can leave bequests from your estate, life insurance policies and retirement accounts. Changes are easily made to the final instructions for your fund and are free, unlike changes to your will or trust.
Our Donor Advised Funds are tracked online. You can log in anytime of the day or night to see what your balance is and the history of your past gifts. You can even make distribution requests online.
The Benefits of a Donor Advised Fund
- Immediate Income Tax Deduction
- Capital Gains Tax Bypass on Appreciated Assets
- Simplicity & Flexibility
- Privacy or Name Recognition
- Legacy Planning
- Online Access
When all of these benefits are considered, it is easy to see why so many are taking a serious look at the Donor Advised Fund. We invite you to contact us if you should have any questions.
Share this Article