Donor advised funds (DAFs) have increasingly become the preferred charitable giving vehicle for high net worth individuals and families looking for a simpler way to manage their giving. Without the administrative burdens of a private foundation, DAFs can provide maximum tax advantages and a flexible timetable for charitable disbursements.
A fund with JCF can protect your confidentiality and afford a degree of privacy not possible with private foundations. A DAF can also sit beside existing foundations for giving that may be off-mission or involve the next generation.
The chart below illustrates the differences and significant advantages of using a DAF.
|Donor Advised Fund||Private Foundations|
|Cash contributions||Deductible up to 60% of adjusted gross income (AGI)||Deductible up to 30% of AGI|
|Appreciated Marketable Securities||Deductible at fair market value up to 30% of AGI||Deductible at fair market value up to 20% of AGI|
|Closely held stock and most other appreciated property*||Deductible at fair market value up to 30% of AGI||Deductible at cost up to 20% of AGI|
|Required annual distributions||Flexible||5% of assets|
|Excise tax on net investment income||None||1% – 2%|
|Annual tax reporting||None for individual fund holder||Annual Federal and State returns|
|Legal and accounting fees||Typically none||Typically incurred annually|
|Confidentiality||Can grant anonymously||The 990PF is available to the public|
We Turn “Problems” Into Giving Opportunities
Donors with illiquid assets such as art or real estate can maximize their tax advantage and provide substantial capital for charitable projects by contributing gifts of non-marketable assets, such as stock in closely-held companies, limited partnership interests, limited liability company interests, art and real estate.
Superior Investment Offerings
JCF offers a robust platform of highly rated investment options vetted by our independent investment advisor. Our pre-approved additional investment options include fixed income, global equity, long/short equity hedge funds, fund of funds and private equity managers. The assets in a JCF fund earn tax-free income that is rebalanced into your charitable portfolio.
Enhanced Investment Opportunities for Private Clients
JCF Private Client Donors (minimum fund balance of $1 million) may suggest investment managers not currently on our platform. Strict due diligence is conducted by JCF’s outside independent investment consultant and is subject to approval by the JCF Investment Committee.