Donor Advised Funds and Your Personality Type
Personality type matters, even when it comes to supporting community causes and especially if you're considering opening a Donor Advised Fund at Brooklyn Community Foundation. A Donor Advised Fund is a terrific vehicle to help you and your family organize gifts to charities, whether you identify as an "investor," a "connector," or an "activator."
Donor Advised Funds are the fastest growing philanthropic planning vehicle today. They allow an individual or family to make a tax-deductible transfer that qualifies as a charitable contribution, and then later recommend gifts to favorite charities from the fund when the time is right. A Donor Advised Fund operates a lot like a checking account just for charity, except it’s established according to IRS guidelines that create the tax advantages. And when you establish a Donor Advised Fund at Brooklyn Community Foundation, you know you are setting up your charitable giving to make a big impact in the borough we call home through the causes you love the most.
So how does personality type fit into the equation?
People who lean toward the Investor personality type are typically a good match for setting up a Donor Advised Fund to maximize tax benefits. Investor types tend to enjoy acting independently as much as they enjoy "doing good" with a group. Investors look at the bottom line when they invest in the community, both from the perspective of their own financial objectives, as well as those of the nonprofits they support. An investor will look at the social impact of the charities they support with an eye towards maximizing their tax and estate planning. Donor Advised Funds have been touted as an intelligent and elegant vehicle for charitable giving, making it a perfect options for investors looking to achieve many goals through one vehicle.
While investor-types naturally gravitate towards Donor Advised Funds, it can be a compelling option for other personality types as well.
Activators, who like to focus on a particular cause and impacting one or more social issues on a broad scale, are also well-suited for a Donor Advised Funds because they can gain valuable insights about our community impact in Brooklyn from our staff. Brooklyn Community Foundation has over 20 years experience making grants to local nonprofits, and staff have developed deep relationships with grantee partners that inform our insights to impact.
Connectors love Donor Advised Funds because they enjoy the opportunity to collaborate with other donors and involve their friends and family members in their favorite charitable pursuits. Some of our funds like the Joseph E. Mohbat Fund and ALLINBKLYN draw on a community of like-minded individuals to select and evaluate prospective grantees.
Investor, activator, connector. Where donor advised funds are concerned, everybody’s got a good side. What’s yours?