You know donor advised funds (DAFs) for their convenience and simplicity. But have you considered taking your donor advised fund one step further to build a lasting legacy at Cal Poly?
Here are two simple options to ensure future support:
1. Name Cal Poly as a beneficiary of your fund.
You can do this at the time you create the fund, or if you already have one, contact your fund administrator to complete a change of beneficiary form. We can use the remaining funds to support our mission.
You have the option of naming Cal Poly the beneficiary of the entire account or a percentage of the fund.
2. Create a family legacy of giving.
Name your loved ones as your successor to continue recommending grants to charitable organizations, such as Cal Poly. This way, the funds can grow to support future family philanthropy. Families can build a tradition of giving and teach their children the values of philanthropy by involving them in the decisions about which grants to recommend.
Joe and Laura want to give back to their hometown by putting their money where it will do the most good. They establish a $25,000 donor advised fund with a community foundation. The couple receives a federal income tax charitable deduction for the amount of the gift. After researching community needs with the foundation’s staff, Joe and Laura recommend grants for Cal Poly (which they’ve supported for years) and a local charity. The foundation presents the charities with checks from the Patricia Fund, which Joe and Laura named in honor of Laura’s mother. Joe and Laura name Cal Poly as the beneficiary to receive the account balance after their lifetimes.
Tip: Convert Complex Assets
If you want to donate real estate, tangible personal property or business interests, but your charity of choice is unable to accept these gifts, consider donating the assets to your donor advised fund.
Review your donor advised fund investment strategy regularly, just as you would to maintain any other investment. You may also want to consider socially responsible investments — those that meet the highest environmental, social and governance standards.
Name a donor advised fund as a beneficiary of all or part of your retirement plan assets. Not only will your donor advised fund receive these assets tax-free, but you can also name your loved ones as successor advisors to continue your legacy of giving.
Divide and multiply your legacy. Perhaps your loved ones have differing charitable passions. Consider dividing your donor advised fund into multiple accounts or creating separate accounts — one for each loved one. That way, after your passing, each successor can create their own legacy of giving by recommending grants to the causes that are important to them.
Recommend recurring gifts. You can set up a plan to recommend grants to Cal Poly on an ongoing monthly, quarterly, semiannual or annual basis.
To maximize your tax advantages, use a strategy known as bunching. To get started:
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.