Donor Advised Funds
A DAF lets you make a tax-deductible contribution now and retain the ability to direct the distribution of the funds in the future.
You create an account in your name (or that of your family). Thereafter, you advise the foundation to make grants from your account to charities of your choice. A DAF is similar to a private foundation, but it is easier to manage and is free of many IRS restrictions.
A DAF is:
| Deductible: An immediate income tax deduction. Contributions of appreciated capital assets will avoid the capital gains tax.
| Flexible: A DAF separates the timing of a tax deduction from charitable support decisions so you have time to decide how to direct your giving.
| Simple: Creating a DAF is very easy to do. You fill out a simple and brief application available to download at our website.
| Versatile: You can give a variety of assets into a DAF: cash, securities, real estate, business interests, etc. Non-cash gifts of assets can provide the most tax leverage.
| Legacy: The DAF can ensure your legacy continues after your death through instructions he or she leaves with the DAF or with his or her successor heirs.
Cash and appreciated securities are the most common assets contributed to a DAF. However, there may be more strategic assets to donate that can maximize your tax savings and allow you to give more than you thought possible.
Gifts of assets from net worth allow you to be a more effective donor without adversely affecting your cash flow or lifestyle needs (in many instances the tax savings will increase your cash flow). You can give:
| Appreciated Securities: Publicly traded stocks, bonds, mutual funds, etc.
| Real estate: Land, rental property, residential, farm, or other properties.
| Life insurance: Whole, universal, or variable.
| Estate gifts: Proceeds from wills, trusts, retirement plans, or life insurance policies.
Year-End Tax Planning: The DAF can be helpful when there are time constraints, e.g., as the end of a tax year approaches, you may not have enough time to decide on charities and projects , but you know you need a tax deduction before December 31st.
Community Endowment Fund
By contributing to the Redlands Community Endowment Fund you are helping to catalyze change and fund innovative solutions to the region’s most challenging problems.
The Community Endowment Fund is a permanent charitable resource that grows through your support and provides much-needed funding to local nonprofit organizations. Endowment funds are, in effect, a savings account protecting and serving the needs of our region When you give to the endowment, you’re helping to meet the needs of our community today and for years to come.
With the Community Endowment Fund, anyone can be a philanthropist. There is no minimum requirement on gifts.
Donations can be made in cash, stock, real estate, and through your will or trust. Contributors of $10,000 or more to the Community Endowment Fund may also join the Redlands Community Foundation Legacy Society; and contributions of $50,000 or more may establish a named endowed fund.
For more information on making a difference by establishing a Donor Advised Fund or mentioning the Redlands Community Endowment Fund in your estate plan or will, please call us at 909.792.7225.