Giving Tuesday began in 2012 as a chance to step back from the commercial consumerism that claims so much of the focus this time of year and turn our attention to philanthropic opportunities. According to the NonProfit Times, gifts to charities hit a record $274 Million on Giving Tuesday a year ago and every indication shows that 2018 should be another record-breaking year.
While making gifts of cash to your favorite charities is a wonderful way of giving back, many financially savvy individuals and organizations have made the step away from “checkbook giving” to opening a Donor-Advised Fund. With a DAF, gifts of cash, stock, property and more can be made at anytime during the year and then those funds can be granted out to any qualified charity on Giving Tuesday or any other time when a need arises.
Another advantage of making that year-end gift to a DAF is that you can recommend grants to multiple charities at once, but you don’t need multiple receipts to claim the charitable donation on your taxes. Your DAF is the qualified charity and all gifts to it are tax deductible. Also, while Giving Tuesday is a great time to get into the giving spirit, it’s important to remember that charities need your help throughout the year; not just the Tuesday after Thanksgiving. So, make your gift to a DAF and you can spread the cheer all year long!
You may be thinking, “This sounds great, but doesn’t it take a long time and a lot of money to start a Donor-Advised Fund?” The answer might surprise you. At RenPSG, a DAF can be set up immediately and the initial contribution can be as low as $5,000, which is $508 below the average charitable deduction according to the IRS. As soon as your fund is established, you can start recommending grants to your favorite charities. Best of all, the assets in your DAF that are not granted out are reinvested in a plan of your choosing giving you an even greater ability to help the charities of your choosing.
Give us a call today to find out how you can make this the year Giving Tuesday became Giving Everyday!