Donor Advised Funds (DAF) provide an effective way to manage charitable giving for current tax benefit and long term philanthropy. The gifts can be made immediately to gain tax benefit in the current year, but the donor can provide direction in the future, for where those fund can be used in the mission of the church*.
For example, if a member has received a large one time sum of money they may chose to donate a portion into a DAF for current tax benefit, then they can determine how those funds can be distributed to their desired use in the future.
The donated funds are held in an investment portfolio until they are deployed and the donor can provide some direction in the investment of those fund. For the General Conference DAF, the fund can be invested in a professionally managed portfolio with appropriate risk and return expectation.
The donor can provide also appoint others to be advisors for the DAF uses. This can be an opportunity to involve family members in younger generations to participate in the giving process. This may allow younger generations to learn and experience the joy of giving.
Setting up a GC Donor Advised Fund
Here are the steps to setting up a donor advised fund.
1. Determine the amount you would like to donate. (Minimum of $25,000 USD for the GC program). Consider your financial situation and any tax benefits.
2. Open up a Donor Advised Fund with the GC. (request an application form by contacting us through: [email protected]
3. Consider the types of projects or mission endeavors you would like to support. Donations can only be given to Church related organizations with the GC DAF.
4. Determine the amount you would like to deploy annually from the DAF. This will impact the types of investments utilized within the DAF. You do not have to commit to any amount as this is for planning and portfolio design purposes.
5. Place the funds into the GC DAF and set up the portfolio.
6. Provide direction, as desired, the GC for organizations, ministries or projects to fund.
7. Additional funds can be placed in the DAF for continued use of the plan.
If you are considering how to manage your finances and philanthropic giving to the Adventist church a Donor Advised Fund may be an effective solution. You will find a faithful way to manage your finances in support of the church even in these volatile times.
You can also consider the Adventist Donor Gift Fund which is a DAF program offered for North American Division organizations.
* Funds given in a DAF become the property of the organization that has sponsored the DAF. The legal ownership of the funds change and becomes the assets of the charity (501(c)(3)). It is not a trust account for benefit of the donor. However, the donor will have the opportunity to advise on how the funds are use.