By: Gene Walden, Senior Finance Editor August 24, 2018
Are you driven to put some of your assets to work to help others or support a charitable cause?
Through an investment vehicle known as a “donor advised fund” you can use investments to do good. Allocate your charitable contributions to a donor advised fund where they are invested to grow, and then direct them to charities 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 assets in your donor advised fund are invested in managed investment portfolios options offered by the sponsoring organization.
For example, InFaith Community Foundation1 offers four fund choices – Income Portfolio, which is 100% invested in fixed income investments, the Core Growth Portfolio or Mission Growth Portfolio, which are both invested in approximately 85% equities and 15% fixed income investments, and the WomenInvest InFaith Portfolio, that is approximately 75% equities and 25% fixed income. In most cases, you can choose to allocate your assets among one or all four portfolios.
Here are some of the other key options that are typically 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 the charities you want to support. For gifts of long-term appreciated securities or real estate, you bypass capital gains taxes on the appreciated value.
Give later. You can arrange to donate life insurance, bequests or beneficiary proceeds upon your death.
Choose your charities. You can support any IRS-qualified charity and even request a specific grant purpose. You can also create a scholarship or simply name an area of charitable interest you want to support.
Build your legacy. You have the opportunity to name successor advisors, such as family or friends, to get involved in giving decisions and continue your legacy.
Stay informed. Monitor your donor advised fund activity through statements and online access.
Thrivent Mutual Funds is proud to collaborate with InFaith Community Foundation to help people take action on their faith, values, and life experiences by giving. Through InFaith, thousands of donors have given more than $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 create a donor advised fund through InFaith Community Foundation may choose from a broad range of giving options. Certain portfolios included investment in 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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