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Donor Advised Funds

Donor Advised Funds – Benefits for the Church & Giver

The most famous verse in the Bible is found in John 3:16, which states that “This is how God loved the world: He gave his one and only Son, so that everyone who believes in Him will not perish but have eternal life.” (NLT) The Bible proclaims that “God loved the world (the object of his love) so much that he gave (love implies action) his one and only Son (the gift)…”

Every gift reveals something about the giver of the gift. What does the gift of Jesus reveal about God? I think it tells us that God is loving. He’s generous and extravagant. He’s thoughtful and aware of our needs. When God gave Jesus he took the initiative and gave first. He didn’t give in response to anything we have given or done. And God certainly gave the best and the most. When we think of Jesus, we realize that the gift is extravagant. And the gift is extravagant to awaken our faith.

But every gift also reveals something about the recipient of the gift. It tells of the value the giver places upon the receiver. When God gave the gift of his Son, we see something about who He is. But we also see something about how he feels about each of us and the value he places upon our lives. 

Al and Ellen were faced with a tax challenge. They owned $500,000 worth of appreciated stock that they wanted to sell, but faced substantial capital gains tax if they were to do so. They did not need additional income, but wanted to create a legacy through charitable giving that would impact their faith community. The couple decided to donate the stock to a Donor Advised Fund at their Church, which would allow them to make recommendations each year as to which ministries they would like to benefit. This allowed them the opportunity to diversify their support depending upon needs and affinities therefore honoring their donor intent.

By doing so, they received an immediate tax deduction in the amount of the stock which reduced their tax burden. The stock was sold upon donation and the proceeds reinvested in a balanced portfolio designed to produce an average return of 6%, allowing them to make annual distributions of approximately $25,000.

“The Donor Advised Fund returned 6% per year, and allowed for annual distributions to their church of $25,000. This reduced their tax-burden and allowed them to give generously to ministry.”

 

Finally, they determined to include their children in the decision process for distributions to further their legacy of generosity.

You and I have benefited from the generous gifts of God. Through Jesus we have been entrusted with spiritual, mental, emotional, and financial gifts to steward for the sake of the Kingdom of God. Your Church has provided you with the resources you need to properly manage the financial gifts you have been given. Part of good stewardship is maximizing your gifts for the sake of the Gospel and ensuring that the wealth you charitably share is consistent with your values as a Christian person of faith. 

By using a tool such as a Donor Advised Fund, you can maximize your gifts by reducing taxes, and be a part of funding Kingdom work today!


 

Learn how your church can benefit from offering creative non-cash giving solutions to your givers. Click here to schedule a time to meet with one of our generosity advisors.