AT SAM 

We understand that your charitable interests are of high importance. SAM was founded with the idea of supporting clients and their financial goals and helping to lead them to a brighter financial future. Recently we have introduced donor-advised funds as a way of showing our continued support to our clients and their philanthropic goals.

How They Work

Donor-advised funds (DAFs) represent a powerful and flexible tool in the landscape of philanthropic giving. Essentially, DAFs are charitable giving accounts designed to facilitate streamlined and strategic charitable contributions. Individuals, families, and businesses can establish a DAF by contributing cash, securities, or other qualifying assets to a sponsoring charitable organization. The immediate benefit to establishing this account is that the contributions are tax-deductible!

Once the DAF is established and funded, donors have the ability to recommend grants from the fund to qualified charities of their choice, with the flexibility to decide when and how much to grant overtime. This flexibility enables donors to respond to evolving needs, support ongoing initiatives, or capitalize on strategic opportunities. DAF assets are invested for growth, allowing donors to increase the impact of their charitable giving over time.

Donors can often choose from a variety of investment options based on their risk tolerance, time horizon and philanthropic goals. DAFs are versatile, cost- effective, time-efficient and one of the fastest growing charitable vessels.

Why DAF’s? 

There are many benefits to opening a DAF account, one of which being that donor-advised funds provide tax advantages that incentivize charitable giving. When donors contribute assets to a DAF, they typically receive an immediate tax deduction for the market value of the assets at the time of the contribution. This deduction can be especially beneficial for donors in years when they have high taxable income. Donors who have highly appreciated assets, such as stocks or real estate, as they can avoid capital gains taxes on the appreciated value while still receiving the tax deduction.

Among the tax benefits:

• Donations can grow tax free.
• Taxes can be itemized to receive a tax deduction in the same tax year the donations of non-cash or long term appreciated assets were used to fund the DAF.
• Securities held for more than a year at their fair market value are not subject to capital gains tax when donated.

By maximizing the tax benefits of their charitable giving, donors can potentially allocate more funds towards their philanthropic goals, benefiting both themselves and the organizations they support.

Privacy 

DAFs offer donors the option to make grants anonymously, providing privacy and discretion in their philanthropic activities. This feature is particularly valuable for donors who wish to maintain a low profile or avoid solicitation.

Getting Started 

Getting a Donor Advised Fund started is simple. If you are a SAM client, reach out to your Wealth Manager. They will get the process started for you.

SAM provides guidance to clients on the optimal investment strategies for their DAF accounts, taking into consideration the client’s investment preferences, time horizon and tolerance levels. Additionally, SAM partners with a sponsor to oversee the administration of DAFs. The sponsor’s responsibility is to ensure that charitable donations are distributed to qualified charities and in accordance with regulations.

After your account is open you may choose how much you want to contribute to your DAF and transfer the assets to your account. Some of the assets you can fund the account with include:

• Cash
• Publicly Traded Securities
• Real Estate
• Closely held and family business interests
• Private Equity and Privately Held Stock
• Life Insurance
• IRAs
• Other Assets

You can closely monitor your donation through the SAM client portal. Reach out to us to learn more.

Leaving A Legacy 

Opening a DAF can offer several benefits for individuals and their families when planning for the future. Establishing a DAF can be a part of one’s estate planning strategy. Successor advisors, such as children, can be named to the fund, allowing them to continue the philanthropic legacy after the donor’s passing. This structured approach can involve family members in charitable giving and ensure that the donor’s values and priorities are preserved.

DAFs also provide flexibility and control for the future. Donors retain advisory privileges over how the funds in their DAFs are invested and distributed to charities. This flexibility allows donors to take their time when deciding which charities to support on their own schedule.

Moreover, DAFs facilitate a multigenerational approach to philanthropy. Involving children in the charitable giving process by discussing causes and organizations to support and allowing them to make grant recommendations from the DAF in the future can help instill values of generosity and community involvement in the next generation.

Interested In Learning More? 

A SAM colleague would be more than happy to walk you through how we help clients achieve their long-term financial goals every day.