As the end of the year approaches, consider this question in your year-end conversations: how can I engage my family in building a strategy for year-end charitable contributions? Nearly a third of annual giving occurs in December, with 12% happening in the last three days of the year. While it is important to support nonprofits year-round, chances are you will make some charitable contributions sometime during the final two months of this year—what better time to engage the entire family and practice generosity together?
A donor advised fund (DAF) at The Signatry is an excellent tool that can serve as a home base for your family’s generosity while also minimizing your tax burden. Here are just a few of the reasons to include your whole family in a year-end conversation through a DAF at The Signatry this year.
A DAF allows everyone to contribute.
By having your whole family on a donor advised fund, you can encourage all family members to make their own charitable contributions and see them show up within the platform. Whether $5 or $5,000, make every family member’s act of generosity play a part in one final, year-end grant recommendation to impact a favorite charity you chose together.
A DAF sets up your family for generations.
Come together as a family to write a fund name and mission statement, then add it to your online DAF profile. This unique option in The Signatry’s platform exists to help you communicate to your family the intent behind the grants you recommend to ministries around the globe.
While you are writing a mission statement together, you can recommend your future generations as successors to the DAF. This creates a space to explain the importance of inheriting the fund and its mission and the value of carrying out these acts of generosity for years to come.
A DAF allows you to teach creative generosity.
You can get creative with a DAF through both contributions and grant recommendations. If you have the ability, show your family members how to contribute gifts of stock or business interest. When it is time to recommend grants, The Signatry’s platform has a charity search tool that allows you to compare charities in similar fields and see the work they are doing. If your family decides to support multiple charities, it is easy to submit new recommendations in one place rather than giving on multiple different websites.
A DAF provides a track record.
With your grant history recorded in one place, you can refine your family’s giving decisions based on how you have given in the past. It can be difficult to remember how much you gave last year and to where. With a DAF, you can look to see if you want to invest in the same ministries as last year, with the same amount, or spread out your acts of generosity.
A DAF invites everyone to participate.
Your family DAF does not have to hold a lot in order to teach family generosity. A DAF with The Signatry has no minimum balance requirement and no monthly minimum charges. The minimum amount for a one-time grant out to a nonprofit is $100. Supporting nonprofits with even this amount is a great opportunity to build the habits of generosity with younger family members. God is honored when we choose to trust Him, and these acts of generosity draw our families closer together around His love.
As you engage your family in year-end conversations and discuss using a donor advised fund to grow your generosity, visit our Start a Fund page to start your generosity journey today.