A philanthropic donor advised fund (DAF) is a named fund of the Jewish Federation of Greater Philadelphia that allows you to recommend grants to qualified charitable organizations of your choice, take advantage of a charitable tax deduction and make your charitable giving simple and effective.
How Does It Work?
You can establish the DAF with a minimum gift of $5,000, with the opportunity to make additions at any time. To start the DAF, you make a gift of cash, securities or other property to the Jewish Federation.
You make recommendations for charitable distributions from the DAF to qualified public charities. Your advisor at the Jewish Federation verifies the tax status and mission of all charitable organizations that receive grants.
The Jewish Federation invests and administers the DAF’s assets, processes recommendations, mails checks to recipient organizations and sends you regular reports. You and your designated current and/or successor advisors, if any, make grants from both income and principal.
Any assets remaining in the DAF upon your death or your successor advisors’ deaths are added to the Federation’s endowment fund to help the Federation meet future needs.
Jewish Federation administers the DAF, writes all checks and makes all distributions in the DAF’s name; you receive quarterly statements and have access to your account online 24/7. Jewish Federation charges an administrative fee of .6 of 1% for its services.
What Are the Benefits?
A donor advised philanthropic fund lets you recommend support for causes you care about most. You can receive an immediate charitable income tax deduction for the amount of the initial gift to the Federation and for all subsequent gifts. If you use appreciated securities or property to establish or augment the DAF, you can receive additional tax savings. You do not pay income tax on the income generated by the DAF.
You can take advantage of the Jewish Federation’s expert advice by partnering with us to make the world a better place. You can involve other family members as advisors, showing them the value of philanthropy and demonstrating to them the importance of taking care of the Jewish community. And by investing in the future of the Jewish community, you ensure that it remains vibrant for future generations.