Want to simplify your charitable giving? How about setting up a special investment account to support the causes you care most about?
Called a Donor-Advised Fund, or "DAF" for short, these special investment accounts are easy to create through the Missoula Community Foundation, Montana Community Foundation, or your financial advisor like Schwab or Fidelity.
You deposit funds in the account and the funds are invested. You get a federal tax deduction for the amount deposited that year. Then, you can use the DAF to donate to your favorite nonprofits over whatever timeline works best for you. The plan administrator takes care of managing your assets, sending out the checks, and the tax paperwork. You just tell them where you want your money to go.
Five Valleys’ supporter and former University of Montana professor, Lee Metzgar, has made his life easier with this approach:
“I have had a Fidelity brokerage account for many years and, a decade or so ago, I noticed their Charitable Account feature. It was my habit to review my charitable giving late in the year and make my allocations all at once, after I had some idea of my tax status. A Donor-Advised Fund at Fidelity seemed a handy way to simplify my giving," says Lee.
“The allocation process is intuitive and efficient. I put enough in to fund all my donations for the year, I don’t have to document each one; the receipt for the one-time donation covers them all.”
This is also a great tool if you have a windfall and want to set aside some funds to do good - you get a tax deduction for the total amount deposited to start your DAF, but can take your time doling it out.
Make the same impact with your donations but forget about keeping piles of receipts. For more information contact your financial planner, local community foundation, or Minette Johnson at 406-519-5191 or minette@fvlt.org.
To learn more about Donor-Advised Funds and other smart charitable giving approaches, join local accountant, Jamie Kicklighter, and our Planned Giving Officer, Minette Johnson, for a lunch and learn on Thursday, July 9th from 12:00-1:00pm at the Missoula Public Library.
This event is free and lunch is provided, but space is limited so RSVPs are required. Please reserve your spot by emailing Minette at minette@fvlt.org.
Photo of a butterfly on a chokecherry bloom by Olga Helmy
