Donor Advised Fund (DAF)

A donor advised fund has several advantages when compared to a private foundation. The start-up time and cost are minimal for DAFs, and gifts to DAFs are generally deductible at fair market value. A DAF is also not subject to the distribution requirements and certain excise taxes faced by private foundations.

Are you looking for a way to benefit Lutheran Church Extension Fund both now and in the future? Would you like to simplify your annual and lifetime charitable giving? A donor advised fund (or DAF) might be a great solution for you.

Benefits of a Donor Advised Fund

• Establish a flexible vehicle for annual charitable giving
• Benefit from a more tax and cost efficient alternative to a private foundation
• Receive an estate tax deduction and savings from your gift
• Obtain a charitable income tax deduction in the year of your gift

What Is a Donor Advised Fund (DAF)?

A donor advised fund is a way to simplify your giving by making a gift to a fund that can distribute gifts to the charities of your choice during your lifetime and help your children carry on your legacy of giving after you are gone.

How a Donor Advised Fund Works

1. You make an initial, irrevocable gift of cash or stock at a DAF sponsor such as the LCMS Foundation.
2. The assets in your DAF grow tax-free.
3. You make annual recommendations on gifts to be made from your DAF.
4. When you pass away, your children may recommend charitable gifts from your DAF.

More on Donor Advised Funds

A donor advised fund (DAF) is an agreement between you and a DAF sponsor such as the LCMS Foundation. A DAF allows you to set aside funds for charitable giving, receive a tax deduction upfront and recommend distributions to ministries when the time is right. You are able to add additional funds to your DAF to receive a tax deduction. Through your guidance and in God's timing, your family can carry on your support for the ministries you cherish.