‘Tis the Season for Giving – Consider Donor-Advised Funds

As the world becomes more connected and information from one corner travels at the speed of light to another, the need for charitable giving has become ever more apparent.   The good news is that people are giving more than ever before, and the level of philanthropic gifts has continued to hit new highs.  One method, donor-advised funds (DAFs), is growing in popularity.

What is a donor-advised fund?

A donor-advised fund (DAF) is a special fund or account that allows you to deposit assets for charitable contributions and receive an immediate tax deduction. Then, in the future, direct those contributions to other charities as frequently as you like. 

How does a donor-advised fund work?

A DAF is like an investment account for the sole purpose of receiving your charitable contributions, then supporting charitable organizations you care about over time. It is maintained and operated by a sponsoring organization, a section 501(c)(3) organization established to sponsor and act as administrator for DAFs.

When you contribute cash, securities, or other assets to the DAF, you are eligible to take an immediate tax deduction. Those assets can be invested for tax-free growth, and you can then direct charitable gifts to any IRS-qualified charity from the account.

What are the benefits of donor-advised funds?

There are many reasons donors choose to use a DAF as a philanthropic giving vehicle, including:

  • Flexibility in the types of assets that can be contributed, from cash to securities to complex or illiquid assets
  • Maximizing the tax benefit associated with charitable giving
  • Continuing to grow your donation tax-free to fuel future charitable grants
  • Empowering your estate and legacy planning

The impact of DAFs on the world of philanthropy is growing as more donors turn to DAFs to meet their philanthropic goals.  Today they are philanthropy’s fastest-growing vehicles.  They allow active donors to support a wide range of causes in an effective and efficient method of charitable giving.  Speak with your financial advisor to learn if they are the right tool for you.

Symmetry Partners, LLC, provides this communication on this site as a matter of general information. Information contained herein, including data or statistics quoted, are from sources believed to be reliable but cannot be guaranteed or warranted. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. All content on this site is for educational purposes and should not be considered investment advice, recommendation or offer of any security for sale. Symmetry Partners does not approve or endorse any third party communications on this site and will not be liable for any such posts.

Symmetry Partners, LLC is an investment advisory firm registered with the Securities and Exchange Commission (SEC). The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission.

A copy of Symmetry Partners, LLC current written disclosure brochure filed with the SEC which discusses among other things, Symmetry Partners, LLC business practices, services and fees, is available through the SEC's website at: www.adviserinfo.sec.gov.

Investing involves risk, including the loss of some or all of your principal. Diversification seeks to reduce volatility by spreading your investment dollars into various asset classes to add balance to your portfolio. Using this methodology, however, does not guarantee a profit or protection from loss in a declining market.

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