June 30, 2021

We often hear from our donors that they support many charitable causes in addition to the kids at Mercy Home. We think this is terrific, as there are so many worthy ways to make our world a better place!

But we also hear about the burden that comes with splitting your philanthropic dollars among many different charities: the check-writing, the tax letters, the stacks of mail. If this sounds familiar, you may be interested in simplifying your giving with a Donor Advised Fund.

A Donor Advised Fund (DAF) is a simple, flexible tool which allows you to manage and maximize your giving to support the causes that matter to you most. A DAF gives you the ability to make a single significant gift to support multiple charities, and lets you simplify your giving.

What is a DAF?

You might think of a DAF as a kind of charitable checking account: you fund it with cash, stocks, or other assets, and receive an immediate tax deduction when you do so. After funding the account, you can choose an investment strategy for your charitable dollars (similar to a retirement fund), so this account can grow over time. You then decide where to direct this giving, and how best to support the work of your favorite charities, like Mercy Home.

Giving through a DAF allows you to fund the account and make charitable gifts on your own time-line. For instance, you can “bunch” several years’ worth of giving into a DAF and take a charitable deduction in one year while supporting your favorite charities over time. It’s also a great way consolidate complex assets—such as business interests, closely held stock, or real estate—into a single philanthropic account.

But a donor-advised fund isn’t just reserved for the very wealthy. In fact, it’s a great tool for anyone who is committed to charitable giving.

DAFs offer many of the same benefits of a family foundation, but are cheaper to establish, and much more flexible to administer. And like a foundation, a DAF can be a great way to engage your family and heirs in philanthropy. Giving your children and grandchildren the ability to research their own causes and become involved in building something great can show them the importance of giving back. It’s an excellent way to teach loved ones about your values and learn more about their values as well

At Mercy Home, we believe that philanthropy should be approached with the same level of attention as any investment plan. The challenge is to give intentionally and effectively, so that your gifts make the greatest difference to the people and organizations who need them most. A DAF can help you do all of this, while maximizing your impact and simplifying your giving.

As Easy as 1, 2, 3

A Donor Advised Fund is a simple, flexible, and tax-efficient way to support Mercy Home and all your favorite charities. It acts like a charitable savings account, and is as simple as “Give, Grow, Grant!”

1. GIVE. Open your DAF account with a gift of cash, stock, real estate, or any other marketable asset. You will receive an immediate tax deduction, which will reduce your tax bill in the year of the gift.
2. GROW. Invest your charitable gift (tax-free) to increase your impact when you’re ready to distribute to charities.
3. GRANT. Invest in the life of a child at Mercy Home. Or fund a scholarship at your alma mater. Or contribute to your local animal shelter. When you’re ready to make a donation, simply ask your DAF administrator to direct a grant to Mercy Home or any other charity of your choosing.