“A Donor Advised Fund is a great introduction to philanthropy. My husband and I felt really confident that the Foundation could provide us with the advice, tools, and resources we need.”

- Alison Brock McGill, Brooklyn Community Foundation Donor Advisor 

With a bit of planning—and consultation with your tax professional—your year-end giving can be a highly effective tool for long-term investing in charitable organizations in Brooklyn and beyond.

One Fund, Many Benefits

Our Donor Advised Fund (DAF) program enables you to give strategically, maximizing the full potential of your charitable giving under the new tax code.

Unlike individual donations, a DAF offers donors the benefit of outside expertise and time. Guidance from our Donor Services team helps you tap into our deep knowledge of Brooklyn communities.

Plus, you control the pace of your giving. There is no rush to distribute the money in your DAF this year—a key feature that allows you to reap more benefits under the new tax code.

The Tax Cuts and Jobs Act

2017’s passage of the Tax Cuts and Jobs Act (TCJA) resulted in major changes to the standard deductions for taxpayers, increasing the amount from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for joint filers.

Additionally, the TCJA has capped the deduction for state and local income, sales, and property taxes at $10,000. This change adversely affects residents in high-tax states such as New York and New Jersey.

Benefits of a Donor Advised Fund under the TCJA

By bundling your charitable giving into one large contribution to a DAF, you may be able to exceed the standard deduction in one year. And because there is no rush to use the DAF immediately, you gain time to thoroughly consider which organizations you want to support—all at a level and pace you are comfortable with.

You can open a DAF in less than one day with an initial contribution of $10,000 or more—and you will receive an immediate tax deduction when you do so!

Opening a DAF also allows you to donate appreciated securities—a fiscally creative way to expand your charitable giving while reducing your overall taxable income. When you gift appreciated stock to charity, you avoid capital gains taxes—a benefit for residents in high-tax states affected by the $10,000 deduction cap on income, sales, and property taxes.

Further, many nonprofits are not set up to receive appreciated securities as donations. Using our DAF program to direct securities to the charities of your choosing streamlines the process for both donors and charitable entities.

Expand Your Charitable Giving Today

You lead the charge on how you wish to allocate funding from your DAF to the charities working on the frontlines, and our team handles all of the administrative work and due diligence.

Get in touch with our Donor Services team to learn more about our Donor Advised Fund program. Email Damaris Dias, Manager of Donor Services at ddias@brooklyncommunityfoundation.org or call 718-480-7507.