Resources for Individuals & FamiliesResources for Nonprofits
Beyond Tax Breaks
Although many financial professionals are eager to talk about the tax benefits of Donor Advised Funds (DAFs), the team at The Faithful Journey Foundation wants givers like you to know just how extensive and varied the perks of DAFs are for donors. Why? Because we believe that knowledge is empowering! We want you to understand how effective your investment can be for the Kingdom work you wish to accomplish with your charitable giving.
Reflection and Reassurance
As Christ-followers, our desire to give back to Kingdom causes what He has so graciously entrusted to us and the conviction to faithfully follow the instruction we are given about finances in God’s Word, motivate us to make charitable giving an integral part of our legacy. However, the prompting to give may not immediately coincide with the discernment of where those funds would be best utilized.
A DAF allows necessary time to pray and seek the Lord for wisdom and clarity, while not delaying your sacrificial financial offering.
You may want to observe a nonprofit for a season to be sure that your money will be used to glorify God in the way it is intended. Or, perhaps you want to allow your funds to accumulate over time, so that you can make a larger one-time donation to the cause of your choice when it is most needed. DAFs afford you the time to give with clarity and confidence.
Flexibility and Reliability
Does your income fluctuate from month to month or year to year? A DAF allows you to make donations to your account when your income is high and establish provisions for future grants that are consistent for your charity. Therefore, you will never need to be concerned about withholding grants that your charity has come to expect, even when your income is lower.
Simplicity and Convenience
Tax time can be stressful, but it doesn’t need to be when it comes to your charitable giving—thanks to a DAF! Instead of needing to keep track of multiple “thank you” receipts from the various charities you support, a DAF means you only need to retain one tax receipt from the DAF sponsor for your donation. A DAF simplifies the required documentation for tax filing.
And what if you want to donate stocks to more than one nonprofit you support? It’s so much easier to make one stock donation to a DAF rather than multiple charitable organizations. By reducing complications to your giving, you can give more freely!
Anonymity and Humility
If you have the conviction to give without getting any accolades or credit for those you bless “so that your Father who sees what is done in secret may reward you” (Matthew 6:4b, ESV), then a DAF is a great charitable giving vehicle. DAFs allow your gift to be anonymous, if that is your desire.
