Optimizing charitable contributions with a donor-advised fund (DAF)

A low-cost solution for donors seeking to maximize the tax benefits and simplify the administration of their charitable contributions over time.

Advantages

Flexibility

Donors can contribute a wide variety of assets: cash, public and private securities, real estate, restricted stock, etc.

Low Cost

DAF can be established quickly and at minimal cost

Tax efficiency

Donors can take an immediate tax deduction of up to 30% to 60% of adjusted gross income, while DAF assets continue to grow tax-free

DAF – sponsored by a public charity – qualifies for most-favorable tax deductions

Bunching multi-year contributions in one year can allow full tax benefits, despite recent limits on itemized deductions

Donations qualify for deduction at appreciated fair market value — not original cost

Privacy

Grants can be made anonymously

Legacy

Donors can establish a legacy by designating a DAF as beneficiary of an estate plan and naming successor advisors to the fund

Coordination

DAF can complement other charitable vehicles, such as private foundations, and receive funding from charitable lead and remainder trusts

Important details on Glenmede DAF program

The minimum initial contribution is $25,000, and $5,000 for subsequent contributions.
The Glenmede DAF is a partnership with National Philanthropic Trust (NPT), a tax-exempt public charity that maintains exclusive legal control over contributed assets and handles tax reporting.
The value of the DAF account will fluctuate with market performance. Income earned by the DAF includes interest, dividends, capitals gains distributions from mutual funds and other investment income.

Glenmede Donor-Advised Fund is offered under an agreement between The Glenmede Trust Company, N.A. and National Philanthropic Trust (“NPT”), a tax-exempt public charity that maintains exclusive legal control over contributed assets. This material is intended to be a review of issues or topics of possible interest to The Glenmede Trust Company, N.A. clients and friends and it is not personalized investment, estate planning, tax or legal advice. Advice is provided in light of a client’s applicable circumstances and may differ substantially from this presentation. This material may contain Glenmede’s opinions, which may change without notice after date of publication. Information gathered from third-party sources is assumed reliable but is not guaranteed. This publication may not be used as legal or tax advice.