Q: What is a Donor Advised Fund (DAF)?
A: A DAF is a charitable giving vehicle maintained by community foundations, financial institutions, or charitable organizations. It allows individuals to donate assets like cash, stock, or cryptocurrency to the fund and recommend grants to qualified charities like the Boys and Girls Club East County Foundation (BGCEC).
Q: How does a Donor Advised Fund work?
A: When you contribute assets (cash, stock, cryptocurrency, etc.) to a DAF, the donation is made during a time that’s most beneficial for tax purposes. Once the funds are in the DAF, you, as the donor, can recommend grants to any qualified charity. The tax deduction happens in the year of your donation, but the grants can be distributed over time.
Q: How can a DAF help me with tax planning?
A: With recent tax changes, some people can no longer itemize their deductions. A DAF allows you to “bunch” several years of charitable gifts into one year, enabling you to itemize and receive tax deductions for that year. This strategy can provide significant tax benefits, especially if you plan large charitable gifts.
Q: How do I make a gift from my DAF to BGCEC?
A: To make a gift from your DAF, simply contact the organization that manages your fund and recommend a grant. Provide them with the following information:
- Organization: Boys and Girls Club East County Foundation
- Tax ID: 23-7357173
- Address: 8820 Tamberly Way, Santee, CA 92071
Q: Can I use my DAF to support BGCEC both now and in the future?
A: Yes! You can blend your gifts with your DAF. For example:
- Make a large contribution to your DAF to take advantage of itemizing your taxes this year and then recommend a grant to BGCEC Foundation right away.
- In future years, continue to recommend gifts to BGCEC through your DAF.
- Name BGCEC Foundation as a beneficiary of your DAF. This is a wonderful way to make a legacy gift or “bequest” without changing other estate plans.
Q: How can I learn more about using my DAF to benefit BGCEC Foundation?
- A: If you’re interested in learning more or have any questions about using your Donor Advised Fund to support BGCEC Foundation, don’t hesitate to contact us! We’d be happy to help you explore how you can blend your gifts for both current impact and future legacy.
Find Out More!
Please contact your advisor for help with questions about your estate plans.
For more information about the Boys and Girls Clubs of East County Foundation, please call
619-440-1600 and ask for our Executive Director, Forrest Higgins.