Donor Advised Fund
HARNESS THE GIVING POWER OF A PRIVATE FOUNDATION
A donor-advised fund, which is like a charitable savings account, gives you the flexibility to recommend how much and how often money is granted to Birmingham Landmarks/Alabama and Lyric Theatres and other charities.
You transfer cash or other assets to a tax-exempt sponsoring organization such as the Community Foundation of Greater Birmingham. You can then recommend—but not direct—how much and how often money is granted. In addition, you avoid the cost and complexities of managing a private foundation.
In return, you qualify for a federal income tax charitable deduction at the time you contribute to the account. This also allows for a centralized giving and record-keeping system in one location.
AN EXAMPLE OF HOW IT WORKS
Joe and Laura want to give back to their hometown by putting their money where it will do the most good. They establish a $2 million donor-advised fund with the Community Foundation of Greater Birmingham. The couple receives a federal income tax charitable deduction for the amount of the gift. They also get all the time they need to decide which charities to support. After researching community needs with the CFGB's staff, Joe and Laura recommend grants for Birmingham Landmarks/Alabama and Lyric Theatres (which they've supported for years) and the United Way. The foundation presents the charities with checks from the Megan Fund, which Joe and Laura named in honor of their granddaughter. Joe and Laura are delighted to start this personal legacy of giving.