How A Donor-Advised Fund (DAF) Works

How a Donor-Advised Fund (DAF) Works

A donor-advised fund (DAF) offers an easy way for a donor to make significant charitable gifts over a long period of time. A DAF is similar to a private foundation but requires less money, time, legal assistance, and administration to establish and maintain. Because DAFs are public charities, they also enjoy greater tax advantages than private foundations.

*The amount of the deduction depends on several factors, including the amount of the contribution, the type of property donated, and the donor’s adjusted gross income (AGI). Generally, deductions are limited to 60 percent of the donor’s AGI for cash contributions. If the donor makes a gift of long-term capital gain property (such as appreciated stock that has been held for longer than one year), the deduction is limited to 30 percent of the donor’s AGI. The value of the charitable deduction is determined using the fair market value of the property on the date of the donation. Any amount that cannot be deducted in the current year can be carried over and deducted for up to five succeeding years.

Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer Member FINRA/SIPC and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. FAIRWINDS Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

This communication is strictly intended for individuals residing in the state(s) of FL. No offers may be made or accepted from any resident outside the specific states referenced. Prepared by Broadridge Advisor Solutions Copyright 2019