Charitable Gift Funds

It’s year-end, and you might be thinking about how your family or company can make tax-efficient gifts to your favorite charities. As if the season weren’t busy enough, you’ve got to track down your favorite charities (and maybe some new ones) and get the checks postmarked no later than December 31.

There’s a better way.

If you plan to give more than $5,000 to charities (ex: $1,000 each to five different charities) you could benefit from a donor-advised fund.

Check with a certified financial advisor for the skinny, but basically:

  1. You create a donor-advised fund (see Schwab or Fidelity) and call it whatever you want (ex: “Smith Family Foundation”).
  2. You gift cash or appreciated securities to this fund and get the tax deduction the day the monies transfer.
  3. You can make grants from the fund to IRS-recognized charities all through the coming year, in amounts as little as $100. You can even set up recurring grants.

It’s a great way to be wise stewards of God’s money and strategically empower ministry around the globe.