Here is the great news. For those of you who currently are donating your hard-earned treasure to causes you are passionate about which are operated by Foundation’s like ours, there is now an innovative way to do it that is gaining attention that I want to make you aware of. I for one wish I had been informed of it in 2016, but now that I am aware of how its functions I certainly will activate it in 2017 as I personally donate to Abōd Shelters® Foundation.
Nonprofits are now working to ensure that donors have a say in where their money goes and that their donations have the maximum impact. The concept is called Donor–advised Giving via Donor-advised Funds.
Each philanthropic organization like Abōd Shelters® Foundation, works with donors in its own way, but several utilize donor- advised funds, established at public charities. They have become the fastest growing charitable giving vehicle, now accounting for more than 3 per cent of charitable giving in the United States. They offer tax benefits and allow donors oversight of how money is dispensed. To provide insight on how they work, I sourced the primer from the National Philanthropic Trust:
- The donor makes a irrevocable gift to the fund. For example, it could be cash or proceeds from sold stock
- The donor immediately receives the maximum tax deduction under IRS rules
- The donor names advisors, successors or charitable beneficiaries connected to the fund
- The gift is placed into the fund account, where it can be invested and grow, free of tax
- The donor can allocate money from the fund at any point to be used as a grant to qualified charities
If you are interested in learning more about Donor –advised Giving via Donor Advised Funds you can contact your personal financial advisor, your family accountant or reach out to me about how you can participate with Abōd Shelters® Foundation in this manner.