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Donor advised funds

Gifts through a donor advised fund

The benefits of using a donor advised fund are strong and, with the new tax laws, are expected to grow in appeal to strategic donors. They are far easier to establish than a private foundation and allow you to support Virginia Commonwealth University when the time is right for you.

How does it work?

When you open a donor advised funds (DAF), you are creating a separate entity with the sole purpose of using the assets under management to support qualified charities. You can fund it by irrevocably contributing assets such as cash, appreciated stock, insurance proceeds, or various other forms of capital. Given that your DAF is a separate entity, you can take an immediate tax deduction for the amount of the gift.

As adviser to the fund, you may be able to manage the investments personally or choose to have an investment adviser manage the portfolio. The two primary avenues of supporting VCU with your donor advised fund are through a beneficiary designation and recommending grants.

Beneficiary

By assigning VCU or other charitable organizations as a beneficiary, you are ensuring that when the DAF ceases to have an adviser the assets in the account get transferred to VCU.

Grants

While you or your assigned successor(s) are advising the fund, you can recommend grants from the fund to support VCU or other charitable organizations.

What are the benefits?

  • Receive an immediate deduction on your taxes.
  • Assets in the fund grow tax free.
  • Easier, and less expensive than establishing a private foundation.
  • Tax smart for those using a “lumping” strategy under the new tax laws.
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© Planned Giving Marketing. This document is informational and educational in nature. It is not offering professional tax, legal, or accounting advice. For specific advice about the effect of any planning concept on your tax or financial situation or with your estate, please consult a qualified professional adviser.

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Last updated: 8/10/2022 8:42 PM

Copyright © Virginia Commonwealth University and Planned Giving Marketing.

This site is informational and educational in nature. It is not offering professional tax, legal, or accounting advice. For specific advice about the effect of any planning concept on your tax or financial situation or with your estate, please consult a qualified professional adviser.

*Affiliated foundations

VCU Foundation (tax ID # 54-0757884) for gifts that support VCU generally and most colleges, schools, departments and units on VCU’s Monroe Park Campus: VCU Athletics, College of Humanities and Sciences, Division of Student Affairs, Honors College, Institute for Contemporary Art, L. Douglas Wilder School of Government and Public Affairs, Richard T. Robertson School of Media and Culture, School of the Arts, School of Education, School of Social Work, School of World Studies, VCU Libraries and VCU Life Sciences.

VCU School of Business Foundation (tax ID #20-2661802) for gifts that support the VCU School of Business and Brandcenter.

VCU College of Engineering Foundation (tax ID #54-1808901) for gifts that support the VCU College of Engineering.

MCV Foundation (tax ID #54- 6053660) for gifts that support the college, schools, departments and units on VCU’s health sciences campus: College of Health Professions, School of Dentistry, School of Medicine, School of Nursing, School of Pharmacy, Massey Cancer Center and VCU Health.