This appeared in a previous issue of JRI and has been updated.
Due to the phenomenon called year-end giving, charities across the country receive a big influx of donations between Thanksgiving and New Year’s Eve. People who want to help out tear a few checks from their checkbook or jump from website to website to send contributions to groups as near as up the street and as far as across the planet. But there’s a better way to make charitable donations!
You can create a personal philanthropy account that operates year-round by establishing a donor-advised fund, or DAF, with the Jewish Federation Foundation of Greater Rhode Island. Just make tax-deductible gifts to your DAF and then recommend distributions from the fund to qualified charitable organizations of your choosing. The JFF takes care of the rest.
The JFF manages the Jewish Alliance of Greater Rhode Island’s endowment, and all DAFs are invested as part of the endowment. There are currently 126 DAFs totaling more than $20.5 million.
Your DAF will grow as the endowment grows, giving you more money to give to charities. You may also choose to name successor advisers, who can step up if you are no longer able to advise on the fund’s distributions. This gives you an extra advantage: an opportunity to discuss the value of philanthropy and promote multigenerational giving.
Benefits of a JFF DAF:
Ease: You tell JFF where to send the grant and the agency takes care of the rest, including confirming the organization’s IRS status, verifying contact information, sending the grant and sending you a copy of the grant letter for your records.
Online portal: JFF’s donor platform allows you to submit grant requests electronically and view your fund value, statements and transactions in one place.
Convenience: You no longer need to file receipts for every donation to every organization – you get a tax deduction for contributions to your DAF and that’s it.
Opportunity: Teaching the next generation about your charitable priorities and the importance of supporting your community.
Access: JFF’s partnership with the Rhode Island Foundation creates more investment options.
Tax savings: Additional tax savings if you use appreciated securities or properties to contribute to the fund, plus no income tax on investment returns.
Why set up a DAF with JFF?
Accessible: The minimum initial gift to create a JFF DAF is just $2,500 – significantly less than most DAFs.
Community support: When you add your DAF to JFF, you increase the total endowment and help grow the community’s resources. You also serve as a role model, communicating your philanthropic priorities to friends and family.
Low administration fee
For more information, email firstname.lastname@example.org.
CLAIRE UZIEL (email@example.com) is the Endowment/Campaign operations manager at the Jewish Alliance of Greater Rhode Island.