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What is a Donor-Advised Fund?

A Donor-Advised Fund (DAF) is a powerful way to plan, manage and help your charitable contributions. You are able to contribute not just cash, but publicly traded securities such as stocks, mutual fund shares and bonds. You or someone designated by you, makes recommendations to the Texas Forest Country Community Foundation as to how the funds should be used. You are still entitled to the same tax deduction limitations as “checkbook” giving; 60% of Adjusted Gross Income (IRS Code Section 170(g) for cash, and 30% of AGI for other appreciated assets. Another advantage of a Donor-Advised Fund (DAF) is that it simplifies and consolidates record keeping and tax reporting for you; you also have the ability to choose whether you personally want to be acknowledged on grants or honor a loved one, or remain anonymous.

This is any easy and convenient way of active philanthropy that lets you make charitable gifts with our full support and expertise. The Texas Forest Country Community Foundation (TFCCF) takes our role as stewards of charitable intent very seriously. TFCCF will inform you about the needs of the community you are interested in and identify charitable organizations that are working to effectively meet those needs.

Once your DAF is formed, TFCCF is the legal owner of the funds and will take seriously our responsibility to carefully manage, invest these assets, and then distribute the funds as you the donor have advised in the agreement to meet your philanthropic goals now and in perpetuity. The advantage to you is you benefit from an immediate maximum tax benefit permitted by law; in other words, because TFCCF has control of the assets, you do not have to wait until the assets are distributed to the charitable organizations to receive income tax benefits. If the contribution is made with appreciated asset that would generate long term capital gain if sold, you can avoid the resulting capital gains tax. In addition, any growth in this account is tax free, thus increasing the value of the contribution to the receiving charities. Another attractive feature of a Donor-Advised Fund is that there are no set-up costs and the monthly administration fee is minimal.