A Donor-Advised Fund (DAF) offers a way to obtain immediate and substantial tax benefits, support vital community programs, and make a meaningful impact with your charitable dollars.

A DAF is a simple and low-cost philanthropic vehicle that allows you to set aside charitable dollars in a tax-efficient way for grantmaking now or in the future. The fund generally bears the name of the donor or another individual selected by the donor. You may recommend grants to a full range of charitable organizations in the Jewish and general community.

 

The Jewish Federation of Silicon Valley offers a variety of opportunities to invest in your passions. When you establish a Donor Advised Fund (DAF) with us, you create a base of financial support for the Jewish community, as well as the general community. A DAF affords you an economical way to set aside charitable dollars for grantmaking, either now or in the future.

 

How it works:

 

A fund is established with a $10,000 contribution, which must be maintained at a minimum of $5,000. As the establishing donor, you can make recommendations for grants from the fund to Jewish and/or non-Jewish organizations that exemplify the values of our mission statement. The funds are managed by the Federation, which makes the grants, maintains records, and provides documentation for tax reporting purposes.

Notification to Recipient Organizations Each grant mailed to the recipient organization will be accompanied by a cover letter identifying the Fund and the name of the Donor or Signatory who recommended the grant. You may also request to be anonymous on a particular grant. If you wish to remain anonymous on all grants distributed, please indicate that preference when you fill out the forms establishing the fund.

 

Benefits:

 

Simple to start and manage

Opening a DAF is easy – no setup costs, only one form to sign, and a minimum contribution of $10,000 (cash, stock, or other assets).

 

Tax-efficient

•  Tax benefits are received immediately upon making a contribution to your fund. DAFs do not require tax return filing.

•  No capital gains tax when you contribute appreciated assets, and there is no tax on earnings in the fund.

•  Receive the maximum tax deduction for cash contributions to the fund and for gifts of qualified  appreciated assets held more than one year.

•  Naming the fund as the beneficiary of your will, trust, or retirement plan may result in substantial tax savings.

•  For individuals facing large capital gains because of a stock buyout, or whose stock portfolios include highly appreciated equities, contributing stocks to create a DAF will avoid capital gains tax on the contributed stocks

•  You have the ability to pass the fund to future generations, making a gift that will endure the test of time.

 

Flexible

•  No annual minimum distribution required; nor is there a requirement to make grants by year-end.

•  Give a meaningful name to your fund, either in your own name, for a loved one, or a term of significance for you.

•  Make grants anonymously, on an as-needed basis.

 

Processing Grants

Grants are processed on a weekly basis. Due to the large volume of grant recommendations made at year-end, processing may take longer during the months of November and December. You will receive a quarterly report of all activity in your DAF. This quarterly report will include information on contributions, grants, and net investment return (income, gains or losses, and fees).

 

Limitations on Grants

Grants may not be recommended for the following purposes:

•  To pay for or to discharge a legally binding personal obligation (such as a legally binding pledge).

•  To make a contribution for which you receive any good or service from the recipient organization, such as discounted tickets, meals at a benefit dinner, admission to a museum or membership benefits. Note: You may recommend grants for the purpose of synagogue membership, including High Holiday seats, because the resulting intangible religious benefits are not considered a good or service.

•  To personally benefit yourself or anyone related to you.

 

If you are interested in learning more about the Federation’s DAF program, please contact Jyl Jurman at 408-357-7500.

 

The Jewish Federation of Silicon Valley charges a fee that is competitive with those charged by other charitable foundations. 100% of the fees charged by the Jewish Federation of Silicon Valley stay in the Jewish community—no other charitable fund administrator in Silicon Valley can say that.