Family Giving Enhanced with a Donor Advised Fund

Charitable giving does not need to be a solo effort: in fact, giving as a family is a great way to turn acts of generosity into habits with your children, create a legacy of generosity for future generations, and make a greater impact, all through one simple tool: a donor advised fund.

Involve the entire family in the generosity process by opening a donor advised fund together. Donor advised funds are convenient tools that can serve as a home base for your family’s giving and minimize your tax burden. You can make tax-deductible charitable contributions (of cash or noncash assets), then recommend grants to the nonprofits you love to support.

Give each parent, child, and grandchild a voice in the giving process. Here are a few reasons why your family’s charitable giving strategy can flourish with a donor advised fund.

A donor advised fund allows everyone to contribute.

If you choose to open a donor advised fund with The Signatry, each family member can create a profile and be added to view, contribute, or recommend grants within a shared fund. Whether $5 or $5,000, make every family member’s act of generosity play a role in your charitable impact.

A donor advised fund establishes a multigenerational mission.

You can establish a succession plan for the donor advised fund. Planning ahead by recommending successors to advise the fund creates the opportunity to prepare your inheritors to carry on your legacy of generosity.

Our online platform also offers the unique opportunity to name and create a mission statement for a family donor advised fund. While you write a mission statement together, your family can discuss your shared values and goals for generosity. This will help the next generations clearly know the legacy they are inheriting. What do you hope this donor advised fund will accomplish for God’s kingdom?

A donor advised fund allows you to teach creative generosity.

You can get creative with giving with a donor advised fund. If you have the ability, show younger family members how contributing noncash assets, like stocks, can multiply the impact your generosity is having.

When it is time to recommend grants, The Signatry’s online platform has a nonprofit search tool that allows you to view vetted charities working in similar fields. If you decide to support multiple nonprofits, it is easy to submit multiple grant recommendations in one place rather than juggling many different websites and giving statements.

A donor advised fund provides a track record.

With your contribution and grant histories recorded in one place, you can refine your family’s giving decisions over time. It can be difficult to remember what causes and nonprofits you focused on in years past. With a donor advised fund, it is easy to evaluate whether you want to invest in the same ministries as last year or change up your acts of generosity.

 

Originally Published on October 28, 2022.