The Power of Donor Advised Funds

Donor Advised Funds have always been a savvy way to support the conservation work we all care about, but they’ve become an even more effective tool in the current economic conditions of COVID-19.

For those who aren’t familiar, a Donor Advised Fund allows you to thoughtfully set aside money for philanthropy, obtaining a charitable tax deduction on that money at the time of establishing or contributing to the fund. Funds are flexible in the amounts that can be donated as well as flexible in the charities you choose as beneficiaries.

At times of unexpected crisis – such as that we are facing now with the Covid-19 pandemic and the myriad ways it is impacting our community– those with Donor Advised Funds have the ability to serve as a kind of philanthropic first responder, quickly getting vital resources where they are needed most while also thoughtfully targeting funds to help support the general operating needs of non-profits such as the Land Trust, whose regular fundraising operations may be challenged as resources are directed to supporting direct service organizations essential to the well-being and safety of the community.

“We can all see, perhaps now more than ever in these challenging times, that the preservation of open space is critically important.” said Mike Sabarese, Truckee Donner Land Trust Board member who gives through a donor advised fun held by the Tahoe Truckee Community Foundation. “Giving through a donor advised fund allows us to target our philanthropy and quickly support our community in times of greatest need while also avoiding capital gains taxes and netting a deduction.  It’s a win-win.”

Money set aside in a Donor Advised Fund is already earmarked for philanthropy so fluctuations in personal assets impacted by the economy are not factors as donors assess their capacity for giving in the current unsure economy. These savvy philanthropists have thought ahead, with funds already put into the DAF, ready and waiting to be donated where and when they are needed most.

“During times of fiscal stress, donor-advised funds play a critical role as the philanthropic capital reserve in communities across the United States,” according to philanthropy.com.

Folks with Donor Advised Funds have been critical to supporting the work of the Land Trust through tough times - we genuinely appreciate your forethought, and your passion for open space in the Northern Sierra.

Want to learn more about donor advised funds? Contact Danielle Williams