Treasury Department Issues Key Report: How It Affects You

The Department of the Treasury recently released an anticipated report mandated by Congress on Donor Advised Funds (DAF) and Supporting Organizations.

  • DAFs will continue to enjoy higher charitable income tax deductions compared to private foundations.
  • DAFs will not be subject to the minimum 5% annual distribution compared to private foundations. In fact DAFs distribute over 9% annually.

How does this affect You?
  • DAFs let you create a private foundation alternative without the cost or headaches.
  • DAFs give you the ability to perpetuate your giving across multiple generations.
  • DAFs enable you to give anonymously and to multiple charities
  • DAFs start at $25,000 at Legacy Fund. You need about $5 million to make a private foundation cost-effective.
  • DAFs can be funded with cash, appreciated securities, real estate or other assets.

The Council on Foundation's (COF) has issued a short summary. Click Here to access the COF summary.

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