Kerry HokeEveryone is using acronyms these days. From ASAP to LOL and ISP to URL, it can be hard to keep track of them all!
Here is an acronym you may or may not have seen before: DAF. Do you know what it stands for? If you answered Donor Advised Fund, you are correct. A DAF is a giving vehicle more and more of our supporters are beginning to use to contribute to Messiah Lifeways and other charitable organizations. It serves as a charitable investment account, and its sole purpose is to support the charitable organizations the donor cares about.
How does it work?
The donor makes an irrevocable contribution—cash, securities, stocks, crypto, mutual funds, etc.—into an investment fund with a sponsoring organization (such as Fidelity, Everence, Charles Schwab, etc.) who then holds and invests that money to grow over time. At a later point in time, the donor may recommend grants to be paid out from that fund to a designated charity. The fund can only be used for charitable giving purposes, and the donor can add assets to it at any point and as frequently as desired.
The donor can create a charitable legacy while receiving an immediate tax benefit, the sponsoring organization typically makes money on “management fees”, and the donor’s preferred charitable organization(s) receive the benefit of a major gift.
Some sponsoring organizations require a minimum contribution to open a DAF, anywhere from $5,000-$25,000. Fidelity Charitable and Schwab Charitable currently have a $0 minimum.
If you don’t have a DAF and you’re interested in exploring whether this option is right for you, be sure to talk to your financial/tax advisor.
If you have a DAF and you’re interested in contributing to Messiah Lifeways through it, please recommend a donor-advised fund grant to Messiah Lifeways through your online giving account or by contacting your fund manager.
Our federal tax ID number is 23-1458000.
The distribution can be directed to Messiah Lifeways and mailed to:
Messiah Lifeways
Office of Donor Development
100 Mt. Allen Dr.
Mechanicsburg, PA 17055
Please ask your fund manager to include your name and address on the distribution so that we can acknowledge your generosity and properly express our gratitude.
