Foundation for the Charlotte Jewish Community Donor Advised Funds: A Tool To Simplify Your Giving

Charlotte Jewish News, December, 2024

What is a Donor Advised Fund?

By Phil Warschauer

You may have heard the term donor advised fund, or DAF, and wondered if it’s the right choice to help you reach your charitable goals. At the Foundation for the Charlotte Jewish Community (FCJC), we use this tool to help philanthropists like you make giving decisions every day.

A DAF is a charitable giving fund — often referred to as a philanthropic checking account — and is managed through a sponsoring organization such as a community foundation or a charitable affiliate of a financial institution. A gift made to establish a DAF or to an existing DAF is typically tax deductible because the sponsoring organization is a public charity.

The assets in a DAF can be invested, grow tax-free, and are available for distribution over time to your favorite charities. DAFs provide a centralized vehicle for charitable giving and simplify record-keeping enabling you to direct all your charitable gifts to your DAF.

Why Consider a Donor Advised Fund?

For anyone looking to simplify their giving while maximizing its impact, a donor advised fund (DAF) offers several unique benefits:

- Tax Deductibility: Contributions to a DAF are typically tax-deductible in the year you make them and can be a tax-planning tool to lower your taxable income.

- Simplified Record-Keeping: All contributions are managed in a single account, which can simplify your charitable giving.

- Flexible Giving: You can make distributions from the DAF to your favorite charities whenever it’s convenient, whether immediately or over many years.

- Growth Potential: DAF assets can be invested in various funds, allowing the potential for growth over time, which can mean more for charity down the line.

- Legacy Planning: You can involve family members in succession planning, ensuring that your philanthropy reflects shared values and creates a lasting legacy

Why a Donor Advised Fund with FCJC?

Choosing to open a DAF with the Foundation for the Charlotte Jewish Community (FCJC) provides distinct advantages, connecting your philanthropy with Jewish values and community impact:

- Personalized Philanthropy: FCJC helps you personalize your philanthropy by aligning your giving with your interests and Jewish values.

- Leveraged Resources: As a supporting organization of Foundation For The Carolinas, we leverage the vast resources of the nation’s fifth-largest community foundation to assist you with your charitable giving.

- Growth Opportunities: Assets in your FCJC donor advised fund can be invested for potential growth in one of six unique investment pools, increasing the amount available for future grants

- Collaborative Partner: An FCJC DAF connects you with our mission to build community and inspire philanthropy, and supports causes that strengthen Jewish life, religion, and culture in the Charlotte region and beyond.

- “Give Jewishly”: Establish DAFs at FCJC or move your existing DAFs to FCJC to identify with a Jewish community foundation to support Jewish and non-Jewish public charities.

- Local Impact: Your commitment to FCJC assists our efforts to distribute grants that help sustain our local Jewish organizations and meet the growing needs of Jewish Charlotte.

- Philanthropic Advisor: We collaborate with your legal, tax, and financial advisors to create a lasting legacy for you and your family!

To learn more about donor advised funds and how FCJC can help meet your philanthropic goals, please contact Phil Warshauer at 704-973-4544 or pwarshauer@charlottejewishfoundation.org.