Hurry! Time is Running Out in 2012 to Open a Donor Advised Fund

December 21, 2012

Alice Parkerson, vice president of development at GNOF, answers why:

Q: Why are donor advised funds so popular?

A: It’s because they’re flexible during these uncertain times regarding the future of charitable donations and how Congress will act. It’s safe to assume taxes are going up, but how it will affect charitable donations remains to be seen.

Q:  What are the tax benefits?

A:    They are immediate. If someone opens a donor advised fund today, they can take a full and immediate tax deduction. In fact, you can open a fund with as little as $5,000 and it grows tax-free, minus an administrative fee that’s quite reasonable. Another option is opening a fund with appreciated securities. Avoiding capital gains tax with a gift of highly appreciated stock is a tremendous benefit.

Q:    Do you have to grant the money out of the fund within a certain time period?

A:    No, unlike a private foundation with a mandatory payout,  you–and your family members if they’re involved–get to decide when and where to make the grants. Once a donor advised fund is opened, there’s no deadline. One way to look at it is you’re capturing today’s tax benefits for tomorrow’s gifts.

Q:  What are some of the other benefits?

A:  Unparalleled customer service for starters. We have a donor relations manager, Allie Betts, who will answer any questions you may have on local charities; walk you through Donor Central, our online giving platform; and invite you to participate in our Foundation-sponsored events.

Call Alice Parkerson today at 504.598.1291 to discuss if opening a donor advised fund is right for you.