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 KCU and other charities.
You transfer cash or other assets to a tax-exempt sponsoring organization such as a public foundation. 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.
Scenario: Dr. Adeline Rush
Dr. Adeline Rush wants to give back to local organizations. She established a $25,000 donor advised fund with a community foundation. In turn, she received a federal income tax charitable deduction for the amount of the gift. After researching community needs with the foundation's staff, Dr. Rush recommends grants to her osteopathic medical school alma mater, KCU (which she has supported for years) in addition to several other local organizations. The foundation presents the charities with checks from the Rush Family Fund, which she named in honor of her family. Dr. Rush is delighted to start this personal legacy of giving.