Donor Advised Funds make charitable giving easy

Establishing a Donor Advised Fund with the Jewish Federation Foundation is a wonderful way to build a tradition of family philanthropy.   

A Donor Advised Fund, or DAF, is a charitable-giving fund created with an irrevocable gift of $2,500 or more, which can be added to at any time. The fund is invested through the Jewish Alliance of Greater Rhode Island’s endowment, which allows the donor to recommend grants to his or her favorite Jewish and secular nonprofit organizations, or even to pay synagogue dues.

Creating a DAF centralizes a donor’s charitable dollars in one convenient account, providing maximum tax advantages and flexibility in grant-making. Funds are started with a simple letter of agreement, which can be completed in minutes. The donor may be an individual, a family or a corporation.

Whether looking to minimize taxes, create a charitable family legacy, or honor a loved one, a DAF may be the right fit for you. Among the advantages:

DAFs are an affordable alternative to a private family foundation. 
Donors can make additional contributions at any time.

Donors can recommend distributions to charities using convenient and secure online access.

All administrative responsibilities are handled in-house to make giving easy.

Donors can give other individuals the right to recommend distributions from the fund.

Maximizing tax advantages.

Unlimited grant distribution annually. 

But wait – there’s more! With a DAF, you can create a family legacy rich in Jewish tradition.Grants issued from the fund will carry your family’s name now and for the next generation. DAFs are self-generating and continue to grow. Once established, any authorized individual may make tax-deductible contributions to the fund at any time, in any amount.

You can also establish a DAF to mark a milestone – such as a birth, Bar or Bat Mitzvah, graduation, wedding or anniversary – to create a meaningful memorial tribute. In the process, you are educating others about the importance of tzedakah. 

Finally, DAFs are an excellent alternative to the financial and legal requirements of maintaining a private family foundation. If you already have a foundation, you can terminate it in just a few straightforward steps, transfer the assets to a DAF at the Jewish Federation Foundation, and continue to pursue your charitable objectives through your named fund.

For more information on easy ways to establish a Donor Advised Fund with Jewish Federation Foundation at the Jewish Alliance, contact Trine Lustig, vice president of philanthropy, at tlustig@jewishallienceri.org or 401-421-4111, ext. 223.