Gifting:
An Educational Lesson to Cultivate Legacy
As your financial advisor, Emerald helps you navigate your financial journey while offering education, resources, and tools for the road ahead. As the holidays approach, we know many clients will be in the giving mindset. If you want to maximize your giving while also reducing your tax bill — a Donor-Advised Fund (DAF) may be the vehicle to help you achieve this.
Earlier this year we shared how a Donor Advised Fund can help you support the causes you believe in while allowing you flexibility and control over your gift. A DAF differs from establishing a private foundation because there is less overhead and maintenance involved. Three great features of a DAF are:
- It allows you to donate cash, long-term appreciated stock, and even bitcoin while also qualifying for a tax break.
- The money you fund your DAF with can be invested tax-free, allowing your donation to grow even more.
- Once you have the DAF set up, you can then pick the IRS-qualified charity of your choice to donate to, and most donations can be made online making the process even easier.
As many families approach the largest wealth transfer[i] in history, more conversations are taking place centered around money and how to maintain, use, and grow current wealth, assisting in the transition of this monumental handover. Maybe this is the year you include children or those you care about in a conversation on wealth, its purposes, responsibilities, and privileges. Donating through a DAF can be a great way to help educate on the benefits of giving back.
To help you do this, we want to pass on something our friends at Fidelity have created — a helpful booklet you can use to develop your personal giving strategy. And right now, Fidelity will fund the opening of a Giving Account (another name for a DAF) with $100 towards any IRS-qualified charity if you open it before October 31, 2022. Opening the account sooner rather than later gives you time to research organizations and causes you feel passionate about, putting you in a position to donate quickly when the time is right.
Do you have questions? Reach out to us by booking an appointment online and we would be happy to help you get started.
[i] Katz, J. (2022, March 1). Forbes.com. When and How to Tell Your Children About Wealth? [Online] Available at: When And How To Tell Your Children About Wealth? (forbes.com)
