Enhancing Your Charitable Impact: The Power of Donor Advised Funds 

When it comes to combining impactful philanthropy with smart tax planning, Donor Advised Funds (DAFs) stand out as a versatile and strategic tool. I’m Ben Payton, CFP®, ChFC®, specializing in retirement income planning at Absaroka Wealth Management. Join me as we explore what Donor Advised Funds are, how they function, and how they can elevate your charitable and financial strategies. 

What is a Donor Advised Fund (DAF)? 

A Donor Advised Fund allows individuals to contribute cash, appreciated securities, or other assets to support charitable causes. Managed by a sponsoring organization such as a community foundation or financial institution, here’s how they typically operate: 

1. Initial Contribution: By making an initial contribution to your DAF, you receive an immediate tax deduction for the full amount in the year of contribution, even if charitable distributions are made later. 
2. Grant Recommendations: You have the flexibility to recommend grants to qualified charities over time from your DAF. This allows for strategic timing of your charitable gifts while potentially growing your assets tax-free. 
3. Tax Efficiency: Benefit from tax-deductible contributions and avoid capital gains taxes on appreciated assets when contributed to your DAF. 

Benefits of Donor Advised Funds 

• Tax Efficiency: Contributions to DAFs are tax-deductible, lowering your taxable income in the year they are made. Additionally, assets within the DAF can grow tax-free. 
• Flexibility: Decide when and how much to grant to charities, adapting to changes in your charitable priorities over time. 
• Legacy and Family Involvement: Involve family members as advisors to your DAF, fostering a shared commitment to philanthropy and creating a lasting charitable legacy. 

Considerations Before Establishing a Donor Advised Fund 

1. Minimum Contributions: Different sponsoring organizations may have varying minimum contribution requirements to establish a DAF. 
2. Investment Options: DAFs typically offer a range of investment options to grow your assets tax-free before they are distributed to charities. 
3. Fees: Understand the administrative fees associated with managing a DAF, which can vary depending on the sponsoring organization. 

How I Can Help 

At Absaroka Wealth Management, I specialize in integrating Donor Advised Funds into comprehensive financial plans. Whether your goal is to maximize tax efficiency, create a meaningful charitable legacy, or involve your family in philanthropy, I provide personalized advice tailored to your unique goals and financial situation. 

Take the First Step Towards Meaningful Charitable Giving 

Are you ready to explore how Donor Advised Funds can amplify your charitable giving impact? Schedule a meeting with me, Ben Payton, CFP®, ChFC®, at Absaroka Wealth Management today. I’m here to provide personalized guidance and help you establish a DAF that aligns with your values and financial objectives. 

Don’t wait—call me today at (307) 586-2702 to schedule your consultation or schedule a time below. Together, let’s maximize your charitable impact and create a lasting legacy through strategic philanthropy. Start planning today for a brighter future for your community and beyond. 

*This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.