What is a Donor-Advised Fund?
A donor-advised fund (DAF) is a giving program that allows you to easily support a favorite charity like Spurwink. You may also be eligible for certain tax benefits. An increasingly popular charitable vehicle, DAFs are an excellent way to both simplify your charitable giving and facilitate your strategic philanthropic goals. DAFs allow donors to give cash, stock and other assets where the donor receives an immediate tax deduction when the contribution is made, but can grant specified amounts to the charities of their choice at a later time.
How it Works
- Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program.
- Advise the investment allocation of the donated assets (any investment growth is tax-free)
- Recommend grants to qualified public charities of your choice (like Spurwink!)
Main Advantages of Donor-Advised Funds
- Simplicity – The DAF sponsor handles all record keeping, disbursements, and tax receipts.
- Flexibility – Timing of your tax deduction can be separate from your charitable decision-making.
- Tax-efficiency – Contributions are tax-deductible and any investment growth in the DAF is tax-free. It is also easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
- Family legacy – A DAF is a powerful way to build or continue a tradition of family philanthropy.
- No start-up costs – There is no cost to establish a donor-advised fund. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).**
- No transaction fees – Once approved, 100% of your recommended grant goes to your qualified public charity of choice.**
- Privacy if desired – Donors may choose to remain anonymous to the grant recipient.
** Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.
What Can Donor-Advised Funds Do for Spurwink?
DAFs provide an easy, flexible, low-cost method of giving which supports our work for children, adults, and families with behavioral health needs in Maine. Help us go the distance for people with developmental and intellectual disabilities, autism, and behavioral health challenges through your DAF donation. Your gift will increase access to care for Maine people, making our state a healthier place to live and work.
Contact Information
To learn more about making a gift to Spurwink using a donor advised fund, please contact Kristen Farnham, VP of Legal Affairs & Advancement at 207.871.1211 x 2186 or kfarnham@spurwink.org.
