Jewish Foundation of Memphis Donor Advised Funds Make End-of-Year Sense for Families

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With year-end quickly approaching, now is the time to consider establishing a donor advised fund (DAF) with the Jewish Foundation of Memphis.

A popular charitable giving vehicle, many philanthropists open DAFs before year-end, most often after discussing the tax advantages and benefits with their financial advisors, CPAs, and attorneys.

“When you give, you want your charitable donations to be as effective as possible,” said John May, a tax professional with Dixon Hughes Goodman PLLC and a member of Jewish Foundation of Memphis’s Professional Advisory Group. “Donor Advised Funds are one of the fastest-growing charitable giving vehicles in the United States because when you contribute cash, securities or other assets to a donor-advised fund, you are generally eligible to take an immediate tax deduction. Then, those funds can be invested for tax-free growth and you’re able to make gifts to any IRS-qualified public charity whenever you choose. Donor Advised Funds at Jewish Foundation of Memphis are one of the easiest and most tax-advantageous ways to give to charity.”

A number of members of JFOM’s Professional Advisory Group attended our most recent Annual Meeting in June. With their legal and financial expertise, these advisors help guide fund-holders to the best possible philanthropic outcomes.

When a DAF is established at the Jewish Foundation of Memphis, donors are given the opportunity to name the advisors to the fund as well as name successor advisors.  These individuals can make recommendations to the board of directors of the Jewish Foundation regarding the investment of the assets and the grants that are awarded.  As a further benefit, DAFs can be created or added to with any marketable asset including cash, securities and even illiquid assets such as real estate and collectibles. Making donations using appreciated stock or mutual fund shares is one of the most tax efficient ways of giving because donors not only get a tax deduction for the current value, they also eliminate paying any capital gains tax.

Donor Advised Funds provide a low-cost and simple way to make tax-deductible contributions of assets, empowering donors to recommend grants to charitable organizations from their DAF account when and how they want. DAFs provide many of the advantages of a private foundation, without the complexity, cost, or public disclosure of a private foundation. In addition to their ease of use, there’s also potential for your funds to grow. While you’re deciding which charities to support, your donation may grow based on your investment preferences, making available even more money for charities.

Currently, more than 300 families have established DAFs with the Jewish Foundation and last year more than $8 million was distributed from these funds to Jewish and non-Jewish qualified charities.

“When donors need a charitable deduction, they don’t have to think: ‘What do I want to give to now?’, said Sheri Gadberry, Senior Fund Manager with Jewish Foundation of Memphis. “They can deposit assets, receive a charitable deduction right when they deposit the funds, and make their gifts to organizations that are meaningful to them any time they choose; a month from now, six months from now, a year from now. Donors get the tax benefit the year that they need it, and are able to make meaningful, impactful gifts at anytime.”

“DAFs help the entire Jewish community because the small fee that’s assessed covers our costs and enables JFOM to accomplish its primary mission of raising endowment funds for Jewish Memphis,” said Gadberry.

While there is still time to establish DAF accounts this year, it is beneficial for donors to speak with their advisors to determine the most advantageous timing.

To learn more call JFOM at 901-767-7100 or email Sheri Gadberry for more information. Learn more about Donor Advised Funds on Forbes.com. Here’s an excerpt: “The tax cut underway in Congress is still up in the air and might remain there until the end of the year. But it seems likely to pass, and very likely to include changes in itemized deductions that will make philanthropy more expensive. So maybe you should accelerate your deductions for charitable donations.

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