What are the causes you care about? How do you plan your charitable giving? A donor-advised fund is a great way to incorporate your charitable giving into your financial planning. Plus, it allows you to support the causes you care about from a single fund.
A donor-advised fund is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities, or other assets to a donor-advised fund at a public charity, like The Community Foundation of Jo Daviess County, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth and you can recommend grants to virtually any IRS-qualified public charity.
How a Donor-Advised Fund Works
Make a tax-deductible donation
Donate cash, stocks, or non-publicly traded assets such as private business interests, cryptocurrency, and private company stock to be eligible for an immediate tax deduction. A contribution to a donor-advised fund is an irrevocable commitment to charity; the funds cannot be returned to the donor or any other individual or used for any purpose other than grantmaking to charities.
Grow your donation, tax-free
While you're deciding which charities to support, your donation can potentially grow, making available even more money for charities. The Community Foundation invests the funds in a pool with other funds to grow your charitable dollars.
Support you love now or overtime
You can support virtually any IRS-qualified public charity with grant recommendations from the donor-advised fund—from your local homeless shelter to your alma mater or religious institution. The Community Foundation will conduct due diligence to ensure the funds granted go to an IRS-qualified public charity and will be used for charitable purposes.
Learn more about donor-advised funds and other types of funds at the Community Foundation. We're here to help. We can talk with you and your financial advisor about starting a donor-advised fund.