Why Start a Donor Advised Fund?
When it comes to charitable giving, there are times when it can feel overwhelming. How do you make the biggest impact with your giving dollars? How do you know you’re giving to the right organizations? For many donors, simply tracking the dollars they have donated over the past year can be a challenge.
So, we are left with the question – how can we simplify our giving? In comes a donor advised fund.
Let’s not overcomplicate it; a donor advised fund (DAF) is a charitable investment account held by One Valley with the sole purpose of doing one thing – supporting nonprofits you care about most. When you contribute to a donor advised fund at One Valley, you are eligible to take an immediate tax deduction. Those funds are then invested for tax-free growth, and you can recommend grants to any IRS-qualified public charity at any time on our easy-to-use online portal.
DAFs are the fastest-growing charitable giving vehicle in the United States precisely because they are one of the easiest and most tax-advantageous ways to give to charity. This, coupled with the ability to utilize the Montana Endowment Tax Credit and receive One Valley’s local knowledge in the form of philanthropic advising, makes this a no-brainer. To learn more about the Montana Endowment Tax Credit, please click HERE. Let’s take a look at how a DAF works.
The Basics
Make a tax-deductible donation.
Call or email either Bridget Wilkinson (bridget@onevalley.org) or Luis Islas (luis@onevalley.org) to establish a fund by filling out a simple form and signing an agreement and then donate cash, stocks, or non-publicly traded assets to receive an immediate tax deduction.
Grow your donation tax-free.
While you’re deciding what your priorities are, or maybe you’re teaching your family about the importance of giving back to your community, your donation can potentially grow. This means even more money will be available for you to give back.
Support nonprofits you care about now or over time.
Give back to those organizations you care about with grant recommendations from your established donor advised fund via email, our easy-to-use online portal, or by calling our One Valley team.
In addition to this simplified process which allows you to easily contribute a wide range of assets, maximize your tax benefits, experience tax-free growth, and simplify recordkeeping, there is an added benefit we mentioned above – philanthropic advising. Our philanthropic advising is geared to assist you every step of the way. One Valley is your local community foundation that works closely with the nonprofits in the area so that we can better serve you. This means that in addition to assisting you in setting up your donor advised fund, we can work with you to identify the causes you care about and connect you with those organizations whose work aligns with those values. We are here from beginning to end and want to work with you to see the Gallatin Valley nonprofit sector succeed.
To learn more about the benefits of starting a Donor Advised Fund, please contact Luis Islas at 406-581-9120 or bridget@onevalley.org. Or, if you’d like to donate directly to One Valley to help us continue our work, please go to our website HERE.