Author: Nina Breen CFP®, RICP®, CPWA®
Wealth Planner
Service Offering at Gatewood Wealth Solutions
INTRODUCTION
At Gatewood Wealth Solutions, we understand that giving back is an essential part of financial planning for many clients. To help clients maximize their philanthropic impact in a convenient and tax-efficient way, we offer Donor-Advised Funds (DAFs) in partnership with the American Endowment Foundation (AEF). This service allows our clients to support the causes they care about, with flexibility and professional guidance.
HOW IT WORKS
Establishing the Fund: Clients work with our team to determine an initial amount, allocation, and investment model for their DAF. Once agreed upon, clients choose a name for their fund, typically something personal, like “The [Family Name] Charitable Fund.”
Account Setup: We coordinate with AEF to create the DAF account. The client fills out a donor application, which includes the fund name, initial gift amount, and naming successor advisors, usually family members, to continue the fund's legacy.
Funding and Management: Once the account is set up, it can be funded with cash or appreciated securities. Clients can then use AEF’s easy-to-navigate online portal to recommend grants to their favorite charities, with a minimum gift amount of $250 per grant.
Gatewood Advisory Strategies: Our Investment Committee will execute the appropriate in-house investment strategy within the DAF, pursuing long-term returns to help clients work toward their charitable giving goals.
WHY CHOOSE A DAF?
Tax Efficiency: Clients receive an immediate tax deduction on their contributions and can strategically fund charities over time.
· Maximized Deduction Limits: Donors can deduct up to 30% of AGI for long-term appreciated securities and up to 60% of AGI for cash gifts, allowing them to maximize tax benefits while supporting charitable goals.
Flexibility in Giving: Through AEF, clients have the flexibility to support multiple charities over time without the administrative burden of managing separate gifts.
Legacy of Giving: Clients can name successors to continue their charitable giving, creating a lasting impact through generations.
FINAL THOUGHTS
Our commitment at Gatewood is to make philanthropy simple, meaningful, and aligned with each client’s broader wealth plan. If you're interested in learning more about how a DAF could fit into your financial strategy, please reach out to our team.
For more information about Donor Advised Funds (DAF’s) and the American Endowment Fund, (AEF), please visit their website at:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal. No strategy assures success or protects against loss. This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.
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