With the end of the year fast approaching, there are innumerable ways the Federation can assist you with 2022 tax planning while making a difference. One of the easiest tools is through the establishment of a Donor Advised Fund (DAF) within our Jewish Community Foundation. We frequently refer to a DAF as a “charitable checking account” where the donor donates cash or securities ($5,000 is our minimum), those assets are invested with our Federation’s pool of assets of over $300 million, and the donor legally retains a right to recommend distributions of income and principal to any qualified charity. It’s like a having a private foundation without that cost or burden of administration. Funding a DAF with appreciated securities (or appreciated real estate or other assets), provides a double tax benefit—not only do donors receive a tax deduction for the full fair market value of the asset, but they are not taxed on the capital gains on the appreciation. Our Federation’s fiscal year (which began on July 1) has seen a surge of donors and millions of dollars added to our DAF program.
The Federation’s DAF program allows donors to guide their distributions to nonprofits both within and outside the Jewish community by filling out a simple form or by working through our online portal. If you want to discuss establishing a DAF with us, please email Patti in our Foundation at firstname.lastname@example.org and someone will get right back to you.
Our DAF program along with our overall Jewish Community Foundation emulate the way we live our Federation’s mission statement: Cultivate Resources, Connect People and Collaborate Across the Community to Live and Fulfill Jewish Values. By cultivating these resources, investing and administering them collaboratively, we help enable donors to be modern day philanthropists, or as we say in Hebrew, Ba’alei Tzedakah (Masters of Tzedakah).
Wishing you a Shabbat Shalom! Go Team USA!