Benefits of a CFGG Donor Advised Fund
- Knowledge of local organizations. CFGG works with nonprofits in our community every day, and we can provide valuable information to help you plan your philanthropy.
- Simplified Recordkeeping. We keep track of your donations, providing timely gift acknowledgments, and we utilize professional money managers for endowed assets. Statement access is provided securely online.
- Tax Timing Advantages. From a tax perspective, it may make sense to make larger charitable contributions in some years more than in others. With a donor-advised fund, you can make contributions in years when it’s more tax advantageous, and then make charitable distributions in subsequent years- without having to add to the fund each year.
- Fast and Easy Set-up. A non-endowed donor-advised fund can be opened in a day with a simple one-page agreement and an initial gift of $10,000 or more. An endowed donor-advised fund is established with an agreement and can be set up in a few days with an initial gift of at least $25,000.
- Modest Fees. A donor-advised fund is typically less costly and easier to administer than other forms of organized giving, such as family or corporate foundations.
- Make Charitable Grants Anonymously. If desired, you can make grants anonymously on a grant-by-grant basis.
- Avoid Capital Gains Taxes on Appreciated Securities. If you have stocks or bonds purchased more than a year ago that are worth more now than when you bought them; you will not have to pay capital gains taxes on the earnings if you gift them to the Foundation.
- Give Strategically. You can choose to partner with the Foundation to fund Community Grants in a variety of areas to strengthen the community.
- Grow Your Giving Capacity. When you open a donor-advised fund, your initial gift can grow significantly over time, and all growth in the fund is tax-free.
- Make a Difference in Perpetuity. You can name a second generation of advisors to a donor-advised fund.