Decide the Beneficiary of Your Gift in the Future.

What is a Donor Advised Fund?

A Donor Advised Fund offers unique benefits to a generous, mission-minded donor who would like to make a charitable gift today but wishes to designate the charitable uses of the gift in the future. With this option, a donor can make a charitable donation to Texas Presbyterian Foundation of cash, securities or other acceptable assets and enjoy the tax benefits of the gift immediately. The donor can even add to the fund periodically. Yet, it’s not required that the beneficiary of the donation be designated until sometime in the future. Distributions to charities need not be made in a lump sum or in any given time period. If desired, a donor can make a series of gifts over time to a variety of ministries or a single gift to a charity.

A Donor Advised Fund has many advantages over and is an attractive option to the costs and issues of a Private Foundation. What’s even more appealing is the fact that a Donor Advised Fund is invested by Texas Presbyterian Foundation in professionally managed investment accounts where it continues to grow until distribution. The donor can discuss investment options from among the various funds administered by the Foundation. However, since for tax purposes, the charitable gift is complete there is no tax liability on the earnings to the donor.

• Provides a unique way to set aside charitable donations for future distribution
  
• Offers immediate tax benefits in the year they are most needed
  
• Allows the donor to initiate how the funds will be distributed
  
• Creates an easy way to make one gift of a variety of stocks and then benefit several ministries over time
  
• Generates a full charitable deduction since there is no donor income.
  
• Growth of funds continue, increasing the pool of resources for future distribution
  
• Offsetting of high income tax years is possible
  
• Avoidance of capital gain when appreciated assets are used to fund the account
  
• Offers donor flexibility to make donations annually or when a favorite charity has a special need
  
• Testamentary gift could be made for distribution by one’s children

How Gifts Are Distributed

The Foundation makes distributions from a Donor Advised Fund after receiving a written request and acting on it favorably. As noted in the title, the donor advises the foundation when seeking a distribution. Multiple requests can be made over time and the donor may even instruct the foundation that the gift remain anonymous.

There are some criteria with regard to the charities to which donations can be made. In simple terms, the funds must be used to benefit tax-exempt charitable, religious or educational organizations. It is Texas Presbyterian Foundation’s policy that at least one half of the original and additional gifts made to the Donor Advised Fund must be distributed to Presbyterian-related Charities; this includes churches, agencies and institutions of the church, and other charities carrying out the mission of one or more Presbyterian congregations.

To Learn More About Donor Advised Funds

If you’d like to learn how Donor Advised Funds could benefit you and the charities of your choice, contact Texas Presbyterian Foundation, 214-522-3155 or 1-800-955-3155.

• Upon the sale of their family’s business several years ago, Ann and John were faced with substantial capital gains. To decrease their tax liability, they established a Donor Advised Fund with a substantial lump sum gift. They received immediate tax benefits for their donation in the year they needed it the most. Since then, they have made distributions from their Donor Advised Fund as needs arose in their church and community.
  
  
• During his lifetime, James was a generous man sharing with the church and a variety of community organizations. Five years ago, he established a Donor Advised Fund adding gifts to it each year. Periodically he made distributions to his church and other favorite causes. When doing his estate plan, James desired that his Donor Advised Fund would continue to benefit to others. In his will, he designated that 25% of his estate would be added to the Donor Advised Fund. He also left instructions that his children would be the advisors to the fund. James left a legacy for the future and established the importance of charitable giving with his children.

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Texas Presbyterian Foundation
6100 Colwell Blvd., Suite 250, Irving, TX 75039
214-522-3155 • 1-800-955-3155