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Charitable Giving With Donor Advised Funds – Goldstone Financial Group

Charitable Giving With Donor Advised Funds - Goldstone Financial Group

Philanthropy has long been a cornerstone for many — an honorable task of giving to important causes and something we should all strive toward. But now, thanks to donor-advised funds, charitable giving has become much easier, says Goldstone Financial Group, making it simpler than ever before to donate money in support of those less fortunate, both near and far. Here’s a look at how you can use donor-advised funds as part of your overall philanthropic strategy.

Goldstone Financial Group On Charitable Giving With Donor-Advised Funds

According to Goldstone Financial Group, Donor-advised funds (DAFs) are an increasingly popular charitable giving vehicle for those looking to simplify and streamline their charitable giving. DAFs provide donors with a wide range of benefits, from tax deductibility to improved donor privacy.

One of the primary advantages of using a DAF is the ability to make donations on a more frequent and regular basis than is possible through traditional philanthropy. By leveraging the services offered by DAF providers, individuals can donate money from their bank accounts or investment portfolios without needing to write checks or send money each time they want to give. This makes it easier for individuals who wish to engage in regular contributions throughout the year to do so easily and efficiently.

Another benefit of using a DAF is the potential tax savings. Since donations to a DAF are tax-deductible, individuals can potentially reduce their taxable income in any given year by donating money to their favorite charities. In addition, since these funds are administered through an accredited financial institution, donors can be assured that their donations will be managed responsibly and effectively used for charitable purposes.

Finally, DAFs also provide donors with improved privacy when compared to other forms of philanthropy. Donors can designate beneficiaries who will receive the proceeds from their donations without having those transactions disclosed publicly. This helps protect them from unwanted attention or unsolicited solicitations related to their giving habits and allows them to give more freely without fear of repercussions or unwanted publicity.

According to Goldstone Financial Group, the popularity of donor-advised funds continues to grow, with an estimated $120 billion in assets held by DAFs as of 2019. This is a 17% increase from 2018 and represents a cumulative total of $528 billion since 2012. In addition, over 290,000 new DAF accounts were opened in 2020, representing an 8% increase year-over-year.

As an example, the Bill & Melinda Gates Foundation has set up its own donor-advised fund that provides grants to organizations around the world that are working to improve healthcare, education, and other key initiatives. By leveraging the services provided by their DAF provider, they can more easily make donations on a regular basis without needing to send in checks or have the donations publicly disclosed. This allows them to give more freely, save money on taxes and ensure that their donations are used for the intended purposes.

Goldstone Financial Group’s Concluding Thoughts

Overall, donor-advised funds provide a variety of benefits to those who wish to engage in charitable giving, as per Goldstone Financial Group. By leveraging the services offered by DAF providers, individuals can save money on taxes, make regular contributions without needing to write checks, and keep their donations private. The continued growth in the popularity of DAFs over the past several years shows that they are an increasingly popular choice for those looking to simplify and streamline their charitable giving.