Most financial advisors, attorneys, and CPAs know the benefits of using a donor advised fund (DAF). However, DAFs are still often underutilized by the public. While many may have used DAFs for large net worth clients a few decades ago, DAFs are still a useful tool which many people can use to help grow their generosity.
Here is a short list you can use to show clients the benefits of using a DAF to grow their giving with less hassle:
- Anyone can open a DAF online in a matter of minutes, and The Signatry requires no minimum deposit or balance upon starting a fund.
- Monthly costs are very low, allowing even modest donors to reap significant tax benefits.
- Online granting allows clients to seamlessly give to their favorite charities with ease (even from the pew or banquet table).
- Statistics show that giving increases when using a DAF. Since the client has already designated funds to charity by putting money in the DAF, he or she can become more intentional about giving.
- A donor does not have to file Form 990 for the IRS. Furthermore, a donor only has to manage a single charitable receipt during tax season.
- Online tools make it easy to access new charities and trends. Clients can track their giving and set giving goals/milestones.
If your client is passionate about philanthropy and is thinking about selling their business, real estate, or publicly traded stock, a DAF is an excellent tool. Opening a DAF can make a significant impact on giving and the generosity of your clients. The DAF is a simple and easy tool to build a giving plan and spark a greater passion for supporting the causes that will impact eternity.
Donor advised funds provide you easy tax planning abilities by combing all your client’s giving into one tax receipt. The Signatry’s Separately Managed Account structure allows you to maintain management of your clients’ assets.
Click here to learn how The Signatry can serve you as you help your client down the path of generosity.