Donor-Advised Funds: Charitable Giving Techniques and Year-End Planning

October 20th, 2017

Glenmede has long partnered with clients to develop effective solutions for their short- and long-term wealth objectives. During initial and ongoing planning sessions, many clients express an interest in philanthropy. This leads to discussion of the methods and tools available to enable and maximize the impact of a donor’s charitable giving. One strategy that may meet client’s objectives is a Donor-Advised Fund (DAF)—a strategy that offers donors tremendous giving and grant-making flexibility, as well as immediate tax benefits.

While not new, DAFs have become increasingly popular. In 2015, they comprised 5.5 percent of all U.S. charitable giving. To provide another philanthropic option for our clients, we leveraged our industry expertise to partner with the National Philanthropic Trust, the largest independent provider of donor- advised funds, to offer the Glenmede Donor-Advised Fund. The Glenmede DAF can be the sole vehicle for a client’s charitable giving or used in tandem with other philanthropic strategies and DAF providers, including our broad network of community foundations and single-issue charitable organizations.

Key Features

DAFs are owned, controlled and administered by the sponsoring public charity. Donors contribute cash or other assets to the DAF, and have advisory privileges over investments and grant recommendations. There are no start-up costs and they can be established quickly.

DAFs accept a variety of complex assets, including restricted stock, real estate and business interests. They allow for deferred giving, so donors may be able to take an immediate tax deduction in the year they make a contribution, while retaining discretion over when the grant is recommended. Additional benefits include:

  • DAFs can be established quickly and with minimal costs.
  • Donors can recommend grants to any number of qualified charitable organizations, recommend multi-year grants and change their grant recommendations from year to year.
  • Grants may be made in the name of the fund or anonymously, if desired. DAFs can involve and continue for multiple generations.

The Glenmede Difference

Glenmede strives to provide an enriching and engaging experience that allows Donors and Advisors to focus their energy on giving. This includes:

  • Administration and advice for a full suite of charitable vehicles for estate and legacy planning.
  • Customized and personalized approach utilizing Glenmede-managed asset allocation strategies.
  • Access to the Glenmede Donor-Advised Fund Service team, who will partner with your existing Relationship Manager and serve as an ongoing resource.
  • Expertise with foreign grants and specialty assets.
  • Online access to DAF activities and grantmaking tools for researching charities.
  • Access to additional philanthropy and nonprofit sector resources.
  • Technical assistance with the management of complex contractual grantee relationships.

If you are interested in learning more, please contact your Glenmede Relationship Manager or the Glenmede Donor-Advised Fund at National Philanthropic Trust: 888-988-1540 or glenmededaf@nptrust.org.

For More Information Download our DAF At-A-Glance, click here.

Glenmede and NPT are not tax or legal advisors. We recommend consulting your tax advisor to determine your charitable tax deduction.