Donor-Advised Funds

In three simple steps, your DAF will help us fight injustice.

At Love Justice International, we believe in the impact of thoughtful philanthropy. One effective way to enhance your charitable giving is through a Donor-Advised Fund (DAF). A DAF is a charitable savings account that gives you the flexibility to support organizations you care about, like Love Justice.

What is a Donor-Advised Fund?

A Donor-Advised Fund (DAF) is a tax-advantaged charitable giving account.

DAFs are often compared to a 401(k) for retirement savings or a Health Savings Account (HSA) for healthcare expenses.

Any person, couple, family—or even company—can open a DAF account at more than 1,000 providers around the country. DAFs have surged in popularity in recent years because they are incredibly effective at increasing giving capacity and streamlining philanthropy.

How do Donor-Advised Funds work?

The power of DAFs lies in their simplicity.

1. Contribute - You put cash, securities, or other illiquid assets into a DAF account.

2. Invest - You keep the balance invested in the market as you go.

3. Distribute - You can recommend cash gifts to 501(c)3 nonprofits any time.

DAFs can be easily set up through your financial institution or through a community foundation to serve as a flexible charitable giving vehicle. For more information on how to establish a DAF, contact your community foundation or financial advisor.

What are the benefits to using a Donor-Advised Fund?

One effective way to enhance your charitable giving is through a Donor-Advised Fund (DAF). Here are just a few benefits of utilizing a DAF:

Maximize Your Tax Benefits: Contributions to your DAF are tax-deductible in the year you donate, allowing you to optimize your giving while potentially reducing your tax liability.
Flexible Giving: With a DAF, you can recommend grants to your favorite charities at your convenience, spreading your impact over time while still enjoying immediate tax advantages.
Investment Growth: Your contributions can be invested for potential growth, meaning your fund can increase in value and allow you to give even more in the future.
Simplified Record Keeping: DAFs consolidate your charitable contributions into one account, making it easier to track your giving and manage your philanthropic goals.
Legacy of Giving: You can involve family members in your giving decisions, fostering a culture of philanthropy that can carry on for generations.

In summary, a Donor-Advised Fund can enhance your charitable journey and help us make a lasting difference in our community.