All Things Financial — and You

Six Reasons Why Non-Profits Need To Offer Donor-Advised Fund Options

One of the best things a non-profit organization can do to increase the number of donations they're bringing in is offer donor-advised fund (DAF) donation capabilities. This type of donating benefits donors, and this in turn can mean more funding for the non-profits they donate to. 

The following are six reasons why non-profits need to offer DAF options to their donors. 

DAFs offer donors a convenient option for contributing to a philanthropic venture

Making donating convenient is one of the best things a non-profit can do to bring in more donated money. With DAFs, donors don't have to write out checks or handle a lot of details about donation payments themselves. This makes it more convenient for donors to take part in philanthropic ventures.

DAFs offer tax advantages to donors

It can be complicated for donors to take advantage of tax deductions for their charitable contributions. DAFs can simplify doing taxes for those who donate to charities.

That's because DAFs make it so that donors simply get a tax deduction when they contribute money to their donor-advised fund. This way, donors don't have to worry about dealing with tax deductions for every single check they write out to a charity. 

DAFs make it easier for donors to continue contributing even if they retire and their income decreases

With standard donation methods, it's easy for donors to struggle to maintain the same level of giving if they start to bring in less income.

A DAF can make it easier for a donor to continue to contribute the same amount of money over time even after their income has gone down due to retirement or another reason. 

DAFs make it easy for donors to remain anonymous

Some donors don't want to have their name listed as a donor for a non-profit. With DAFs, donors know that they can easily remain completely anonymous when they donate to a non-profit. 

DAFs make it possible to donate numerous asset types

A DAF makes it possible to donate assets such as appreciated securities or even real estate assets. This means that with DAFs, donors aren't limited to donating only cash or cash equivalents.

Donors can grow the funds they've put aside for philanthropic ventures with DAFs

One great thing about DAFs is that they have an investment component. This means that donors can grow the funds they want to put toward non-profits and charitable ventures over time. The ability of a DAF to accrue interest is a great way for a donor to maximize their impact.

To try using a DAF, contact a donor-advised funds service.

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All Things Financial — and You

It is really hard to talk or write about finance without it feeling personal. Even when you read about very general financial principles, there is a tendency to think through how they can be applied to your situation. And this is only natural! Finance is something we all should know at least a little about because, after all, we all earn and spend money. It's just how we exchange value in the modern world. Please keep this all in mind as you read this blog. The articles may be a bit general, but there are always ways that you can apply this knowledge to your life.