Consider Donor-Advised Funds on World Kindness Day

• 2 min read

hands making the shape of a heart
Donor-advised funds are a great way to spread kindness on World Kindness Day and beyond.

Get the Latest Research & Insights

Sign up to receive an email summary of new articles posted to AMG Research & Insights.

hands making the shape of a heart

Today is World Kindness Day. Looking for a way to celebrate? One of many acts of kindness a person could do is to make or plan a charitable gift. While this is a great thing to do any day of the year, mid-November is a particularly good opportunity—the holidays are on everyone’s mind yet there’s still time to make plans before year-end.

A giving vehicle we’re keen on at AMG is the donor-advised fund. Of course, there’s nothing wrong with supporting the causes that are meaningful to you by making gifts from a regular checking or securities account. But the rules surrounding donor-advised funds create unique advantages that go beyond traditional gift-giving:

  • Using a platform such as AMG’s Charitable Gift Foundation, clients can “private label” a donor-advised fund as a family foundation, for example, without the legal, administrative and distribution requirements of a private foundation.
  • The account can be funded with highly appreciated assets, which is the very definition of a win-win because you can donate them without liquidating them, thus avoiding capital gains taxes.
  • You have time to develop a philanthropic strategy or philosophy. The donated assets grow tax-free until you recommend distributions to the charities you want to support.
  • Your contribution to your donor-advised fund, however, may be eligible for an immediate tax deduction when you transfer assets to the fund. This is a great strategy if you’ve enjoyed a windfall such as selling a business.
  • With the AMG Charitable Gift Foundation, a donor-advised fund can hold a broad range of assets, not just cash and securities. Your donor-advised fund may be funded by certain private equity or closely held stock interests creating additional opportunities for philanthropically minded individuals and families.
  • And here’s an intangible benefit: time. With the donor-advised fund in place you can map out a long-term giving strategy and teach the next generation to appreciate—and plan for—further acts of kindness.

This World Kindness Day (or any day, really) is a great time to learn about donor-advised funds and the AMG Charitable Gift Foundation. Contact us at AMG or, if you’re already a client, ask your advisor if the AMG Charitable Gift Foundation is the right vehicle for your giving.

This information is for general information use only. It is not tailored to any specific situation, is not intended to be investment, tax, financial, legal, or other advice and should not be relied on as such. AMG’s opinions are subject to change without notice, and this report may not be updated to reflect changes in opinion. Forecasts, estimates, and certain other information contained herein are based on proprietary research and should not be considered investment advice or a recommendation to buy, sell or hold any particular security, strategy, or investment product.

Get the latest in Research & Insights

Sign up to receive a weekly email summary of new articles posted to AMG Research & Insights.