Page 11 - December 2019 Bar Journal

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5 Smart Ways to Maximize a Donor Advised Fund

by Kaye Ridolfi, Senior Vice President of Advancement, Cleveland Foundation

Donor advised funds have Gifts from Others: Clients can
become a universally popular add to their fund any time with
a variety of assets, and others
tool in charitable giving – can too! Many fund holders

and for good reason! These share news of their fund with
funds are a smart choice friends and family, encouraging
donations in memory of a loved
for philanthropic investments, one, or in place of wedding,

and with careful planning, anniversary, retirement, birthday
can afford great tax savings, or bar and bat mitzvah gifts.

flexibility and the benefit of 4. Connect to the Community
Kaye Ridolfi centralizing charitable dollars in Clients and their advisors may

one convenient account. Some simple strategies can inform a giving strategy by
connecting with other donors
help your clients realize the full impact of their fund and those involved with the
and boost the satisfaction they get from giving: many nonprofits in Cleveland

1. Choose the Right Partner 3. Maximize Flexibility and beyond doing meaningful
work worthy of support.
Helping your clients reach Timing: When clients make Establishing a relationship
their philanthropic objectives a contribution to a donor with staff and board members
is an important service you advised fund, they can claim an at your local community
can offer. A partner, such as a immediate income tax deduction foundation and area nonprofits
community foundation, can help and decide later which charities can be beneficial.
you customize a giving plan that to support. 5. Leave a Permanent Legacy
helps clients identify what’s most Assets: The most popular types of
important in their philanthropy, contributions to donor advised As clients review their estate
backed by extensive community funds are cash and appreciated planning options, a donor
insight and financial expertise. securities. If clients choose to advised fund is one way to leave a
2. Involve Family gift appreciated securities, they lasting legacy. They can provide
estate instructions to roll their
Clients may choose to involve can claim a deduction without donor advised fund into a
their family by designating paying taxes on appreciation. permanent fund to support
members as fund advisors Convert a Private Foundation: If clients specific nonprofits or broad
or successor advisors. Some once created a family foundation interest areas in perpetuity.
donors have even opened up and now find that circumstances
separate donor advised funds are different, perhaps as a result
for each of their children. of a changing family, geographic
Many donors like the idea of dispersion, or updated charitable
teaching their children how to priorities and estate plans, they can
make grantmaking decisions easily convert a private foundation
and experience firsthand how into a donor advised fund and
their philanthropic choices can continue to support their favorite
transform the community. nonprofits.

For more on the advantages of working with the Cleveland Foundation, contact:
216-685-2006 | GiveNow@CleveFdn.org | www.ClevelandFoundation.org/Give

DECEMBER 2019 CLEVELAND METROPOLITAN BAR JOURNAL | 11