“Establishing a Donor-Advised Fund at the Community Foundation – and adding to it any time, in any amount – allows local donors to tap into the foundation’s knowledge and understanding of community investment opportunities.”
For donors who want to make a difference locally and beyond, one way that families and individuals can rally their resources around particular issues or causes is to establish a Donor-Advised Fund (DAF) with Community Foundation Boulder County.
Indeed, the popularity of DAFs has mushroomed in recent years, according to the Chronicle of Philanthropy’s annual ranking of charities that receive the most in private dollars.
“With the increased value of ‘bundling,’ DAFs are an even better option for community-minded donors who want their personal philanthropy to be a part of something bigger,” says James Graham, a former Trustee of Community Foundation Boulder County, and President and Founder of Richtr Financial Studio. Indeed, to continue to realize tax benefits from giving, a growing number of donors “bundle” several years’ worth of charitable giving into a single year, and then distribute gifts over time.
“Establishing a Donor-Advised Fund at the Community Foundation – and adding to it any time, in any amount – allows local donors to tap into the foundation’s knowledge and understanding of community investment opportunities,” adds James.
Specifically, fund assets are typically invested and professionally managed for tax-free growth. Donors may choose from the foundation’s investment pools (i.e., traditional, passive, or socially responsible), or work with their own financial advisor to invest their charitable assets.
“Additionally, when you give to one of the foundation’s other funds – such as the Community Trust – your donation is pooled with other donations, and invested for maximum impact,” continues James. “Put another way, the foundation leverages the impact of your donation, whether it’s $25 or $25K.”
Learn more about establishing a DAF at the Community Foundation as an effective vehicle to make informed decisions about giving to charities and critical causes you’re most passionate about.
