Do you have one? If so, please remember Code Platoon in your giving! If you don’t know what a donor advised fund is, read on. You may be interested in this incredibly popular method of giving that allows you to realize an immediate tax benefit, and then distribute funds at your leisure.
A donor advised fund account is a form of philanthropic giving in which an individual creates a “personal charitable savings account” and deposits their contributions of cash, stock, or other assets without choosing a specific recipient right away. When the donor decides on a recipient, they can send the money from the DAF account to the nonprofit organization as a grant, (all while benefiting from an immediate tax deduction upon creation of the fund!).
Donor advised funds are created by the donor but are managed by other parties, such as a foundation or another sponsoring organization, who actively invest and manage the funds. A huge portion of these sponsoring organizations are charitable arms of financial-services firms, such as Vanguard and Schwab. The donor can then continue to deposit assets into the DAF. While the sponsoring organization manages and oversees the fund, the donor advises them on when and where to make gifts. You can also request funds be granted towards Code Platoon through your DAF.
If you prefer to stay local rather than open a DAF through a national chain like Vanguard, Fidelity or Schwab here are some Chicago region community foundations that can help you set up your DAF and provide ongoing advice:
We are excited to build relationships with Starved Rock Country, DuPage, Oak Park River Forest and Evanston community foundations in 2020!
DAFs have been an attractive choice for charitable giving for a while now because they offer a hefty deduction benefit and a flexible but relatively hands-off approach to giving. You may decide that this philanthropic vehicle is perfect for you, just be sure to remember Code Platoon!
Lang Waters is a grant writer for Code Platoon. Lang had a career in IT before dedicating himself to nonprofit work. He’s now a vice chair of a county commission, sits on the board of a local nonprofit, and volunteers as he can. He is a graduate of the University of California, San Diego, and is raising a family in the foothills of the Sierras.