December 20, 2017
By Jack Doyle, Amergent President
Hard to believe this is being published in December of 2017.
Here’s an article on donor advised funds with a mix of tiresome worries that haven’t died.
What’s good about this form of giving? There are immediate tax advantages for the modest investor who donates appreciated stock. I donated $12,000 worth of a stock (that cost me $5,000 a couple of years ago) to my Fidelity Charitable account this month. I then granted a number of $1,000 and $2,000 gifts.
I’m getting thank you letters back every day from grateful clients.
I will receive a single tax deductible receipt from just Fidelity Charitable.
Every Fidelity Charitable grant indicates the funds are from the Doyle Family and lists our address. I’m told that in 2017 more than 90% of all the FC grants identify the donor.
The average giving account is fully granted within nine years. To me that represents an outflow greater than 10% annually, faster than foundation distribution requirements of 5%.
Funds I left undistributed in our account did grow. I was able to send out an extra $500 grant with those dollars in two different years. I considered it a bonus to be able to give money I didn’t have before.
The key to making everyone happy here is for charities to inspire their donors who have these giving accounts to use them more often. Donors enjoy giving. DAF donors have set aside money that can’t be used for any other purpose than to do good with worthy causes.
Too many of the thank you letters I’m getting are doing only that, thanking me and confirming receipt of the grant. Wouldn’t it be better if every DAF thank you letter reminds the donor of every positive outcome and impact they make every time they use their DAF account and encourages them to share their love and support?
Then the flow of donor-advised funds directly TO the non-profits will increase.
Happy holidays to all and may your year-end giving be abundant!
