By: Gene Walden, Senior Finance Editor June 27, 2017
Are you driven to put some of your assets to work to help others or support a charitable cause?
An investment vehicle known as a “donor advised fund” gives you the opportunity to allocate your charitable contributions to a managed investment fund where it could grow tax-free until it’s passed on to charitable causes of your choosing. You’ll receive a tax benefit for your donations, based on when and how you give.
Flexibility is one of the key benefits of donor advised funds. You don’t have to decide immediately which charities you want to support. You can donate your money this year – and receive a tax benefit for your donation – then decide later which IRS-qualified charity or charities should receive your donations.
In the meantime, the money in your donor advised fund will be invested in a managed portfolio you select from the fund options offered by the sponsoring organization.
For example, our partner, InFaith Community Foundation1 offers three fund choices – Income Portfolio, which is 100% invested in fixed income investments, or the Growth Portfolio or Mission Portfolio, which are both invested in approximately 85% equities and 15% fixed income investments. In most cases, you can choose between the three or divide your assets between the Growth Portfolio and the Income Portfolio.
Those with a portfolio of $250,000 or more may choose a customized “advisor managed fund” to more precisely direct the allocation of assets within the portfolio.
Here are some of the other key features which may be available through donor advised funds:
Give now. You can invest your donations in a donor advised fund anytime with cash, stock or real estate, and decide later which charity or charities you would like the money to go to. For gifts of securities or real estate, you bypass capital gains taxes on the appreciated value.
Deed property without leaving home. When you deed your property for charity, you receive an immediate charitable tax deduction for a portion of the appraised market value, yet you can continue to use or rent out the property as long as you live.
Give later. You can arrange to donate life insurance, bequests or beneficiary proceeds after your death.
Choose your charity. You can recommend any charity for your donations and even request a specific grant purpose. You can also create a scholarship or simply name an area of charitable interest you would like to support.
Build your legacy. You have the opportunity to name successor advisors, such as family or friends, to get involved in the donation decisions and continue your legacy.
Stay informed. You can monitor your donor advised fund activity through statements and online access.
Flexible contribution policy. Not only can you give to any charity, you can change your designated charity if you wish.
Thrivent Mutual Funds is proud to be collaborating with InFaith Community Foundation to help donors take action on their faith, values, and life experiences by giving. As a result, thousands of donors have made over $1.1 billion in gifts to over 8,000 charities. InFaith Community Foundation is associated with Thrivent Mutual Funds. Together, they provide services that support the overall mission of Thrivent Financial. Individuals who invest in donor advised funds through InFaith Community Foundation may choose from a broad universe of fund options, including the funds offered by Thrivent Mutual Funds.
Learn more about Donor Advised Funds at InFaith Community Foundation.
1InFaith Community Foundation, while not an affiliate, is associated with Thrivent Mutual Funds and together provide services that support Thrivent Financial's overall mission.
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