October 9 | Isabelle Panza
What is a Donor-Advised Fund (DAF)?
There are many ways to support a cause, but one powerful option that often goes overlooked is the Donor-Advised Fund (DAF). A DAF allows you to support your favorite charities, like Long Island Cares, while offering tax advantages. Think of a DAF as a charitable savings account: when you contribute to it (irrevocably), you receive an immediate tax deduction. From there, you can recommend grants to various charities over time, based on your preferences.
Benefits of a Donor-Advised Fund
One standout feature of DAFs is the variety of assets you can contribute, offering you flexibility. You can donate cash, publicly traded securities, real estate, cryptocurrency, and more. Once your funds are in the DAF, you have the freedom to distribute them in lump sums at your convenience.
Supporting Long Island Cares with a DAF
For example, imagine contributing $10,000 to a DAF with the intention of supporting Long Island Cares over time. While Long Island Cares does not directly oversee your DAF, they can help guide you on how best to use those funds to support their current needs. You might choose to grant $2,500 during the summer to aid their summer hunger programs and another $5,000 during the holidays for their Adopt-A-Family campaign. The DAF handles all the administrative tasks, allowing you to focus on what matters most: making a meaningful impact when it feels right for you.
Did you know?
DAFs provide an easy way to support your community while enjoying the benefits of a tax deduction.
Ready to start your Donor-Advised Fund?