YOUNG PHILANTHROPIST DONOR ADVISED FUND
The purpose of a Young Philanthropist Donor Advised Fund is to enable young adults in our community to engage in their own Tzedakah through the benefits and versatility of a Donor Advised Fund. A young adult may establish a Young Philanthropist DAF from any age up through their 29th birthday. On the Fundholder’s 30th birthday, the DAF converts to the “standard” DAF, with the requirements then in force for minimum fund balances.
By making a contribution of cash or securities in the amount of $500 or more, you may establish a fund which is held in an account which you name. The Dallas Jewish Community Foundation offers several investment options; you recommend how your funds are to be invested.
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.
At any time, you may recommend that grants be made from your fund to specific charities you wish to support, freeing you from the pressure of making such decisions at the end of each year. 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. The minimum grant which may be recommended is $50. Unless you request anonymity, grant checks are sent with a transmittal bearing your name.
You may designate 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 charity that you have established.
A Donor Advised Fund can provide the advantages of a private foundation while eliminating on-going legal and accounting costs, as well as excise taxes on investment income. When large contributions are made, the allowable tax deductions are greater than those available when contributions are made to a private foundation. The IRS currently does not require any specific level of annual distributions; neither does the Dallas Jewish Community Foundation. The only agenda for the grants is: YOURS.
A gift to the Jewish community today will allow you to be there for your family, your community, and the Jewish people—where and whenever help is needed in the future.
AT-A-GLANCE
- May be established with cash or securities
- Can be created with a minimum gift of $500
- Allows you to recommend grants to organizations
- Offers considerable tax advantages
- Enables continuity through generations of your family
- Less burdensome than operating a private foundation
- Minimum grant requirement of $50
- Must maintain a minimum balance of $500