Stories

Making a gift to support the mission of your favorite charity is its own reward, but for many people, it can often be challenging to determine which method of giving makes the most sense given your goals and financial circumstances. As a donor, you have many options, but one giving strategy, Donor Advised Funds (DAF), has exploded in popularity over the last several years due to how it maximizes tax benefits.

While DAFs are not new, growth in assets in these funds has skyrocketed recently with no signs of stopping anytime soon. A Donor Advised Fund is like having your own foundation. Rather than giving money or stock to your favorite nonprofit(s), you give to your fund instead. You receive a tax deduction when you contribute money to it, but don't distribute money to charity until you want to do so. The money is invested to hopefully grow the fund. Then, you advise the administrator when to make a gift from it to your favorite nonprofit(s). This gives you the control and freedom to make contributions (and receive income tax benefits) when you choose. If you establish a Donor Advised Fund with LHM, at the end of the term, the remaining fund balance will become an asset of our organization, helping us further our mission.

A Flexible, Low-Cost Alternative to A Private Foundation
A DAF offers you a flexible and easy-to-establish vehicle for charitable giving. Unlike private foundation gifts, DAF gifts generally qualify for a full fair market value charitable deduction and have lower startup costs. A DAF also permits you to make grants to charity without unfavorable private foundation restrictions and excise taxes.

It's Easy to Get Started
Opening a DAF account is easy. Simply contact us for an application form and complete and sign the fund agreement. You may fund your account with a gift of cash, securities, real estate, or other assets. Check with us if you have unique or special assets that may be donated in a tax-efficient way.

A Donor-Advised Fund May Be the Right Option If:

• You like the idea of a private foundation but prefer to defer the investment and administrative decisions to someone else and to simplify your tax filings;
• You want to avoid the ongoing expense and management of a private foundation;
• You want to support multiple causes without having to retain records for separate organizations;
• You want to be able to take advantage of greater tax benefits for your philanthropy today

Ready to open a DAF account and recommend gifts to LHM? Contact your financial planner for more details or to get started. If you already have a DAF, consider recommending gifts from it to LHM. You can contact LHM's gift planning team at 1-877-333-1963 or visit our new gift planning website at lhm.christianwill.org.