Why Financial Advisors Are Recommending Donor Advised Funds to Their Clients

Donor-advised funds (DAFs) are individual accounts that can be set up inside of public foundations. There are many benefits of donor-advised funds, especially for donors looking to make the biggest impact with their donations—so much so that many financial advisors recommend using DAFs. Here are some of the main things you need to know about donor-advised funds and why financial advisors are recommending them.

What Do I Need to Know About Donor-Advised Funds?

DAFs are recommended by financial advisors because they have several main benefits, including:

• Tax Efficiency - DAFs help you give more efficiently on account of their tax rules. Donor-advised funds allow you to take a tax deduction now and use it to pre-fund donations in the future, so you can experience the benefits if you are having a high-income year, as well as being able to donate if you are having a down year when you wouldn’t normally have extra money to give.
• A Variety of Options - Another benefit of donor-advised funds is that they allow you to donate a wide variety of assets. These assets include things like bitcoin, appreciated stock, and shares in private businesses. The ability to donate these various assets also increases the tax benefits you can receive since you can reduce or eliminate capital gains taxes, which assists both your own taxes and allows the charities you support to receive more funds.
• Organization - DAFs also offer an easy, organized solution to donating. In a donor-advised fund, all of your information is easily accessible in one place, so you don’t need to worry about credit cards, bank information, or chequebooks when you want to make a donation. With DAFs, all you have to do is specify a charity you’d like to donate to, how much you want to donate to them, and when you want the charity to receive your donation. You can also donate anonymously if you choose. With a DAF, sorting donation receipts from many charities becomes a thing of the past. 

The Canadian National Christian Foundation provides philanthropic advice and wants to connect God’s money with God’s work. Our staff, our leadership, our board, and our donors are all believers who want to help you manage your assets and guide you through creative giving solutions that also benefit you. We can handle non-cash gifts quickly and effectively, getting the money into the field as soon as possible with 100% of your principal always available to grant out. You can get started by contributing to a fund today!

About Canadian National Christian Foundation

CNCF is a community of givers who are seeking to advance the Kingdom of God by connecting the resources God has entrusted to them with His work on earth.

Similar to other public foundations, CNCF’s difference is the commitment of its staff and directors to the Word of God, its non-denominational history and status as a Christian foundation, and its ability to allow donors to donate anonymously, at a time and gift value of their choosing.  Learn more by visiting our website.