What is a Giving Fund (Donor Advised Fund)?
A Giving Fund, also known as a Donor Advised Fund (DAF), is similar to having your own personal foundation, but much more private, less expensive, and with greater tax savings. Giving cash and non-cash assets through a Giving Fund leverages your generosity with a greater portion of your hard earned dollars going to organizations you believe in.
Giving Fund Fast Facts:
Offer significant tax benefits.
Giving Fund (DAF) holders enjoy a federal income tax deduction of up to 60% of adjusted gross income for cash contributions and up to 30% of adjusted gross income for the appreciated securities they donate. (Investopedia)
Are being utilized by donors at historic levels.
In 2020, grants from Giving Funds (DAFs) to qualified charities totaled an estimated $34.67 billion, representing a 27.0 percent increase compared to 2019. This was the highest DAF grant increase in a decade. (2021 DAF Report, National Philanthropic Trust)
Simplify your giving.
When you utilize a Giving Fund (DAF), you can give to multiple organizations you love while only receiving one tax deduction letter.
Cost less than a Private Foundation.
Expect a lower cost while avoiding many of the legal, reporting, and privacy concerns of a Private Foundation. Unless you plan to start a Private Foundation with $10-$20M, a Giving Fund (DAF) is the best way to start your charitable work. (See: DAF vs. Private Foundation)
How a Giving Fund Works:
A Giving Fund (DAF) works like a charitable giving account.
- You make gifts into the Fund.
- You recommend grants to your favorite organization(s).
- The Ten Talents Foundation sends the organization(s) money to support their work.
All the giving is directed from a single source, making tax preparation simple. Pending the type of gift, the donor receives a tax deduction in the year the gift is made to their fund. Funds may be invested in a variety of investment models, providing the possibility of tax-free growth.
When you open a Giving Fund (DAF) through the Ten Talents Foundation, we become the hub to help you give gifts that organizations have been unable to accept until now such as:
- Tangible Personal Property
- Real Estate
- Property Interests
- Crop/Agricultural Gifts
- Oil, Gas, Mineral Interests
- Charitable Gift Annuities
- Charitable Trusts
- Beneficiary Designations
- & More!
Giving Fund Testimonial
“We decided years ago that we wanted to be kingdom minded. We wanted our business to be a reflection of God’s stewardship. [But] there’s a lot of need in our community, a lot of great organizations, a lot of nonprofits. Trying to meet with each of those… It was getting overwhelming.
Thoughts of a foundation had gone through my mind, [but] I didn’t know what that looked like. When I heard about Ten Talents, it was just the perfect opportunity for us. We set up a Donor Advised Fund [also known as a Giving Fund] with Ten Talents. They vet different organizations and [save me] a lot of time I would normally spend doing the research and meeting people.
I trust Ten Talents. They act as a partner of ours. Having a partner that has the same mission, that understands the bigger picture of what we’re trying to accomplish, is really important. We’re not in this to grow our own kingdom. We’re in this to grow God’s kingdom.”
Open a Giving Fund (DAF):
Are you interested in transferring your assets into a Ten Talents Donor Advised Fund, incurring significant tax savings, and increasing the power of your charitable gifts for the Kingdom?