A donor advised fund (DAF) with the Jewish Community Foundation, Inc. is perhaps the most versatile online account you never knew you might want.
When you start a DAF with the JCF, you gain many important benefits, here are a "bunch" of them:
Centralize Your Charitable Giving: Instead of writing checks or paying by credit card for such donations as your synagogue dues, Jewish Federation of Southern New Jersey annual gifts, or even one-off contributions to Jewish day schools, your alma mater, favorite museum, or other charity, you can recommend grants ($100 minimum) from your DAF to any IRS-qualified 501(c)(3) nonprofit organization, saving you time.
Track Your Philanthropy: With your DAF, you can go online 24/7 to view contributions that you've made into your account and the status of grants that you've recommended for distribution.
Donate Appreciated Assets: When giving charitably, the best bet for tax savings is often to donate stock, mutual funds, bonds, or other assets that have grown in value after having held them for over a year. By doing so, you avoid capital gains taxes, and you earn a charitable tax deduction on the fair market value of the gift when itemizing [tax deductions are available for cash donations up to 60% of your Adjusted Gross Income (AGI) and for appreciated asset donations of up to 30% of your AGI, and you can carry forward any excess tax deduction for up to five years]. Plus, many nonprofits may not be set up to handle transactions of non-cash assets while the JCF Can. Further, you may also want to divide up the proceeds to multiple charities over multiple months or years. In summary, a DAF with the JCF allows you to have better control of timing and planning, and you can accomplish this in a more seamless process than when donating assets sporadically.
Now, let's look at the benefit that was teased in the headline:
Due to tax law changes in 2017, many U.S. taxpayers may not earn charitable tax benefits if all qualified deductions do not exceed the standard deduction when filing taxes for the year.
If this scenario applies to you, consider that a DAF offers the opportunity for you to "bunch" your charitable gifts of multiple years up front into one year, enabling you to earn an immediate tax deduction that helps you exceed the standard deduction when itemizing for the year when you make the contribution.
Then, the DAF will hold your charitable dollars for future years and the JCF will invest your fund in one of the portfolio options which you select, and it may even grow (tax-free) over time. When ready, you can initiate grants to your preferred nonprofits.
(Please note that the JCF does not provide estate, legal, or tax advice, and you should consult with your trusted advisor as needed.)
In Short:
Start Your DAF with the JCF Today...
Bunch Your Gifts this Year...
Set Yourself up for Giving in Future Years
By opening a donor advised fund with the Jewish Community Foundation, Inc. with no minimum initial contribution, you can be ready for when you want to add to your DAF in the coming months, perhaps around year-end. You may even earn key tax benefits through bunching. Finally, you can recommend grants at any future time.
To learn more or to get started, please contact the JCF at 856-673-2528 or mstaff@jfedsnj.org.
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