The Power of Donor Advised Funds: Inspiration and Reminders
If you’ve not yet considered establishing a Donor Advised Fund (DAF) at Brooklyn Community Foundation to organize your charitable giving, you may be missing out. And if you’re already using a DAF at the Foundation to organize your giving, it never hurts to review the benefits of having your fund with us. Below we’ve highlighted just a few of the advantages that come with having a Donor Advised Fund at Brooklyn Community Foundation.
Immediate Tax Deductions + Giving At Your Own Pace
Donor Advised Funds are popular because they allow donors to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction—after establishing your fund with us, you will receive a tax-deduction right away! You can then recommend gifts to your favorite charities from your fund when the time is right—putting the “advisor” of “donor advisor” into action!
Giving Simplified: Our Online Donor Advised Fund Portal
A Donor Advised Fund operates a lot like a checking or savings account just for charity, and it’s established according to specific IRS guidelines that create tax advantages and govern administration. With our online Donor Advised Fund Portal, you can support the causes you care about and easily access your fund balance and submit grant requests whenever inspiration strikes you—whether you’re with your grandchildren at Jane’s Carousel, walking your dog in Prospect Park, or in the comfort of your home, you can give from our platform as long as you have an internet connection.
Private Foundations vs. Donor Advised Funds
A Donor Advised Fund can be an effective alternative to a private foundation, thanks to fewer expenses to establish and maintain, maximum tax benefits (higher AGI limitations and fair market valuation for contributing hard-to-value assets), no excise taxes, and confidentiality (including the ability to grant anonymously to charities). We take care of the administrative lift of your fund, allowing you to focus on the causes you’re passionate about.
Supporting Racial Justice
Our DAF program offers our partners the flexibility to give wherever you want, at your own pace, while giving back to Brooklyn. Unlike commercial Donor Advised Fund providers, our fund fees are invested in Brooklyn nonprofits working for racial justice—meaning that your investment in your fund is an investment for the benefit of the wider community.
A Community of Generosity
A Donor Advised Fund at a community foundation is often a more effective choice than a Donor Advised Fund offered through a brokerage firm (such as Fidelity or Schwab). As fund holders at Brooklyn Community Foundation, you and your family are part of a larger community of giving—in 2021 alone, our donor advisors gave $8.2 million from their funds—and you have opportunities to meet other donors who share similar interests. In addition, our donor services team is here to support you with your strategic grantmaking, family philanthropy, and opportunities to gain deep knowledge about local issues and nonprofits making a difference in Brooklyn and beyond.