What is a Donor-Advised Fund?

What is a Donor Advised Fund?
Contributions to donor advised funds reached an all-time high in 2016 and are expected to rise even further.

Whether you are running a successful company or spending free time with family, we know that every hour is precious. That goes for your charitable efforts, too.

Philanthropy is one of the best ways to give back to your community and help others, but it can also be a complex and daunting process without the right tools and support.

That’s where a donor-advised fund comes into play.

What is a Donor-Advised Fund?

Donor-advised funds are quickly becoming one of the most popular forms of philanthropy today. According to the National Philanthropic Trust, contributions to donor-advised funds reached an all-time high in 2016 and are expected to rise even further with the implementations of the new Tax Cuts and Jobs Act.

A donor-advised fund is a simple, tax-efficient way to give to your favorite nonprofit organization or area of interest. You are able to contribute any asset, such as cash, stock or real estate, and take an immediate tax deduction, then support your favorite community initiatives or nonprofit organizations whenever you are ready.

All donor-advised funds are administered by a charitable sponsor, such as a community foundation.

For example, many donors at The San Diego Foundation establish donoradvised funds as endowment funds. Over time, their initial charitable contribution grows through tax-free investments, and each year they can give out grants to support impactful initiatives in San Diego, such as helping underserved youth develop into tomorrow’s innovators and engineers through our Science & Technology Program.

In short, donoradvised funds are the perfect way to personalize your giving, maximize your tax deductions, and ensure that your money is supporting a community you care about.

How Does It Work?

Charitable sponsors manage all the heavy lifting for donor-advised funds.

At The San Diego Foundation, our Development & Stewardship staff is your team of experts, helping you make the most impact with your charitable giving. We process your grants, maintain historical records of your philanthropy and provide you with regular fund statements to make tax reporting as seamless as possible.

Your Fund, Your Impact

When thinking about philanthropy, we know that impact is an important factor in deciding how to give.

Together, we can explore how to open donor-advised funds that best meet your financial priorities and personal values.

Learn how setting up a donor-advised fund at The San Diego Foundation can help you accomplish your philanthropic goals, without adding any unnecessary time and stress to your busy schedule.

Which Donor Advised Fund is Right For You?

Contact our Development & Stewardship Team today!

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