Jewish Federation of Northeastern Pennsylvania

Donor-Advised Philanthropic Funds

A Donor-Advised Philanthropic Fund allows you to recommend charitable distributions to an approved non-profit organization of your choice.

At-a-glance:

  • May be established with cash or securities
  • Can be created with a minimum gift of $1,000
  • Allows you to recommend grants to organizations
  • Offers considerable tax advantages
  • Less burdensome than operating a private foundation

Enjoy a convenient vehicle that can manage your charitable giving. Take full advantage of available tax benefits.

By making a contribution of cash and securities in the amount of $1,000 or more, you can establish a Donor Advised Philanthropic Fund in your name with the Jewish Federation of Northeastern Pennsylvania Endowment Fund.

You may recommend that grants be made from your fund to specific charities. A single contribution of securities may be used to make tax-advantaged contributions to many charities, avoiding the cumbersome requirement of breaking a security position into many small units. Unless you request anonymity, grant checks are sent with a letter, acknowledging a distribution from your fund.

You may appoint your children to make grants on your behalf now, or as your successor, enabling your family’s future generations to carry on the tradition of tzedakah that you have established.

Any contributions you make of cash and securities, which you’ve held for at least one year, are fully deductible and afforded the most favorable tax treatment.

In addition, any funds held in the account grow tax-free.

A Donor-Advised Philanthropic Fund can provide the advantages of a private foundation while eliminating ongoing legal and accounting costs, as well as excise taxes on investment income.

 

Comments are closed.