The Crimson Legacy — Donor Advised Fund Special Edition

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The Crimson Legacy

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Giving That Suits Your Needs

By creating a Donor Advised Fund, you establish a giving mechanism tailored to meet your specific needs.

Most people who create Donor Advised Funds are seeking an uncomplicated, flexible giving option — one with many of the features of a private foundation.

With a Donor Advised Fund, you enjoy all the tax benefits of a public charity without many of the limitations that apply to private foundations. Such benefits include:

• A lasting way for you and your family to share your commitment to philanthropy and your community
   
• A flexible tool for planning and carrying out charitable gifts
   
• A convenient way to receive helpful advice and assistance on charitable giving

Businesses may also establish a Donor Advised Fund. Doing so is an excellent alternative to creating a corporate charitable foundation. Whether your business is a corporation, partnership, limited liability company, or sole proprietorship, it can create a Donor Advised Fund to:

• Establish or continue a charitable giving program and communicate your organization's commitment to the community's well-being
   
• Make a fund available that allows selected employees to make charitable gifts as a reward for exemplary service
   
• Provide a source for future charitable giving for years when revenues might not otherwise warrant gifts to charity

Giving Appreciated or Depreciated Property

Because of the greater tax benefits associated with gifts of securities or other appreciated capital assets that have been held long-term, such assets can be an attractive alternative to giving cash.

You avoid capital gains taxes on these gifts and receive an immediate tax deduction for the full fair market value of the property donated. Such gifts can serve to eliminate tax on up to 30 percent of your otherwise taxable income for up to six years.

In the event you own investments that have decreased in value, you may wish to sell them and contribute the proceeds to a Donor Advised Fund. This results in a loss you may be able to deduct from other taxable income. In addition, you may deduct your gift of the sale proceeds as a cash contribution. By combining both deductions, the transaction may result in greater tax savings to you.