Giving Tuesday began in 2012 as a chance to step back from the commercial consumerism that claims so much of the focus this time of year and turn attention to philanthropic opportunities. According to GivingTuesday.org 37 million Americans participated in 2022 with gifts to charities hitting a record $3.1 billion—a 15% year-over-year increase and a 25% increase since 2020. Every indication shows that 2023 should be another record-breaking year.
While making gifts of cash to favorite charities is a wonderful way for donors to give back, many financially savvy individuals and organizations have stepped away from “checkbook giving” to open a donor-advised fund (DAF).
With a DAF, gifts of cash, stock, property, and more can be made at any time during the year. Those funds can then be granted out to any qualified charity when the donor chooses, such as Giving Tuesday or any other time when a need arises.
Another advantage of making a year-end gift to a DAF is that donors can recommend grants to multiple charities at once, but don’t need multiple receipts to claim the charitable donation on their taxes. Their DAF is the qualified charity and all gifts to it are tax deductible.
Also, while the Giving Tuesday movement is a great time to get into the giving spirit, it’s important to remember that charities need help throughout the year; not just the Tuesday after Thanksgiving. So, making a gift to a DAF gives donors the chance to spread charitable cheer all year long!
Some may find it surprising to learn that DAFs can be set up in a relatively short amount of time and don’t require a large amount of money to get started. At Ren, a DAF can be set up immediately via RCF, our sponsoring charity, and the initial contribution can be as low as $5,000. As soon as the donor’s fund is established, they can start recommending grants to their favorite charities. Best of all, the assets in their DAF that are not granted out are reinvested in a plan of their choosing giving them an even greater ability to help the charities they want to support.
Contact us to find answers to any of your charitable planning questions.
