Donor-Advised Fund

Giving With a purpose

            At Retirement Wealth Partners, we place a premium on giving back to our community.  You can see more information on how we do that here Retirement Wealth Partners Gives Back.  To help support our clients in their generosity, we offer a donor-advised fund (DAF).  A DAF is a charitable giving vehicle that allows our clients to contribute to qualifying charities from a tax-advantaged account.  How does a DAF Work?

• When a client establishes and funds a donor-advised fund they are eligible for an immediate tax deduction for the entire contribution as a charitable gift in that current year. This characteristic makes a DAF attractive for individuals who may experience a high-income year.
• The funds established within the DAF can then be invested or gifted to qualifying charities over time by the account owner. The assets within the fund also grow tax free. This allows the client to give to causes they care about above their initial investment.
• The Commonwealth Charitable Fund is a DAF that allows you to instill the idea of philanthropy in your family for generations to come.

What Assets can I contribute to a Donor Advisor Fund (DAF):

• Cash
• Stocks
• Mutual funds
• IRAs
• Life insurance
• Real Estate
  

*Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization.  Each account is composed of contributions made by individual donors.  Once the donor makes the contribution the organization has legal control over it.  However, the donor, or donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment assets in the account.  Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later. Because you receive the tax benefit immediately, your contribution is irrevocable, which means your assets cannot be returned to you for any reason.