Cultivating a Multi-Generation Giving CultureBy Jeanne McMains, Vice President, National Christian Foundation, Serving Focus on the Family
A donor-advised fund (DAF) can be a useful tool to help you cultivate the principles we’ve learned in this FamilyWise newsletter edition. With a DAF, you can make charitable gifts to a family giving fund and then work with the next generation to determine what grants you would like to recommend be made from your DAF to your favorite charities.
A DAF is quick, easy and inexpensive to create and use—which allows you to focus your time and energy on cultivating relationships, deepening stewardship perspectives and changing the world together through your family’s charitable giving impact.
In addition, giving through a DAF can help simplify your income tax planning by:
- Deduction Reporting: You may choose to make all of your charitable gifts to your DAF from which you can recommend grants be made to your many favorite charities. By doing this, you would have only one charitable gift receipt (your DAF) to include with your annual income tax return and would thus eliminate the need to attach numerous gift receipts for all of the charities you support.
- Deduction Timing: Sometimes it is difficult to make charitable giving decisions when you are up against year-end tax deduction deadlines. When using a DAF, you can make your charitable gift at the time most convenient and tax advantageous for you and claim your income tax deduction when you need it. Thereafter, you have the time and freedom to prayerfully consider when and how much you want to recommend be distributed from your DAF to your favorite charities.