A donor advised fund is a fund at a community foundation or commercial brokerage house that distributes funds to other charities such as the Atlanta Humane Society.
You can open one with a written agreement between you and the organization that gives you (or other family members) the right to recommend that distributions be made from your fund to the Atlanta Humane Society.
One caveat: You cannot direct distributions. You have the right only to make recommendations.
How does it work?
Once you have created a donor advised fund, you can:
- At any time, make contributions to your fund, which are invested by the sponsoring charitable organization, which then provides a regular accounting to you.
- Recommend that various amounts be distributed to charitable organizations of your choice.
- Receive an income tax charitable deduction for gifts to your donor advised fund when you itemize.
Why might I consider a donor advised fund?
- Convenience and timing—You may take a tax deduction now, when you make a gift to the fund, without immediately having to choose the charities you want to support.
- Simplicity—You can support a number of charitable organizations without having to retain records for a number of separate contributions.
- Family philanthropy—Families can build a tradition of giving and teach their children the values of philanthropy by involving them in the decisions about which grants to recommend.
For more information, visit https://atlantahumane.planmylegacy.org/donor-advised-funds
The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
