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The Power of a Donor Advised Fund

Bill High

Bill High

October 26, 2018

An October 4, 2018, article by Bloomberg noted that donor advised funds have tripled in growth to more than $85 billion in assets by year end 2016.

The rise of donor advised funds has been tied to a variety of reasons:  ease of use, tax efficiency and even as part of family legacy planning.  Ray Madoff, a Boston College Law School professor, further notes that donor advised funds provide optimum tax benefits for complex assets.

Specifically, some donor advised funds are particularly adept at receiving gifts of real estate and even closely held business interests.  “The right structure in receiving closely held business gifts allows a donor to achieve maximum tax benefits—up to 30% of AGI,” says Evan Lange, Vice-President of Gift Planning at The Signatry.

While some charities are concerned that donor advised funds are not required to distribute 5% annually like private foundations, the reality of many faith-based donor advised fund entities is that they are distributing well over 30% annually.  Faith-based giving encourages a “give it now to accomplish the most now” mindset.

Part of The Signatry’s vision is to see the last checks needed to solve the world’s greatest problems signed. We believe the opportunity is now, and we encourage donors to have this mindset as they join an active and like-minded community.

One thing is for sure from these articles:  donor advised funds are here to stay.

About Bill High

Bill High

Bill High is the Founder of The Signatry. His mission is to empower families in building multi–generational legacies of generosity. Bill works with families, individual givers and financial advisors, with expertise in guiding business owners looking to sell or transition their business to the next generation.

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