A Donor Advised Fund is a “charitable checking account,” which you can add funds to and recommend distributions from as you desire to benefit charities you are passionate about. A Donor Advised Fund can be established with $10,000; it’s easy and requires no legal paperwork. Donors can start making grant recommendations beginning the day assets are received. TOP does all the work to ensure the grantees are eligible 501(c)(3) charities and that grant checks are mailed timely. For donors under the age of 40, philanthropic funds can be started with $5,000.
This type of endowment fund is often used with IRA rollover gifts, enabling the donor to predetermine how the fund will be distributed to the beneficiaries over any defined time period.
Have you considered giving appreciated assets (stocks, mutual funds) to charity? The tax benefits of such a transfer can be extremely attractive. If you have held the appreciated assets for more than one year, you can give them to a qualified charity without having to pay a tax on any capital gains. You will still get a charitable deduction for the stock’s fair market value on the day you give it away.
An endowment can be opened with $5,000, and can be funded with current assets or an after-lifetime gift. A specific portion of the fund is distributed to the beneficiaries annually, while the balance grows, helping ensure that the endowment will last indefinitely. You can also support the Federation through a bequest in your will.