Donor Advised Funds and Charitable Gift Annuities are two popular philanthropic investment accounts that you can utilize to support the work of the Indiana 4-H Foundation. Each account has distinct benefits and limitations. Here’s what you need to know:
Donor Advised Funds (DAF). A DAF is a giving account established at a public charity. The 501(c)(3) public charity serves as a “sponsoring organization,” which manages and administers individual DAF accounts. DAF accounts allow donors to make an irrevocable charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time. Donors can contribute to the fund as frequently as they like, and then recommend grants to their favorite charitable organizations whenever it makes sense for them. This allows donors to give when they can, then grant when it’s needed.
Charitable Gift Annuities (CGAs). A CGA is a contract between you and a single charity. You irrevocably transfer assets to the charity and in return, you receive a fixed stream of income for the rest of your life (and potentially for a second beneficiary). You may be eligible for a partial income tax deduction for the donation. Upon the death of the annuitant(s), the remaining assets go to the charity.
To learn more, contact Indiana 4-H Foundation Executive Director Shelly Bingle at shelly@in4h.org.