The South Florida multi-cultural community is well known for the size of our hearts and willingness to give and organizations like the Urban League and Alonzo Mourning Charities are responsible for improving the lives of many deserving members of our community. According to the Florida based Council on Foundations, its 2000 members have estimated assets of $276 billion and made charitable grants of over $15 billion in 2006 with Florida rated tenth nationally. Foundations have always been integral to the art of giving, unfortunately, many of us aren’t ready to devote the time or able to afford the costs associated to administer our own foundation. With respect to Bill and Melinda Gate’s multi-billion dollar foundation’s the average person’s option to philanthropy? Quickly becoming the new philanthropist’s vehicle of choice are donor advised funds. A donor advised fund is a charitable vehicle set up under the tax umbrella of a sponsoring charity. An individual, family or corporation makes an irrevocable, tax deductible contribution of personal assets that includes cash, publicly traded stock, real estate and other assets like closely held stock and life insurance to the sponsoring charity. At any time thereafter, the person, group or corporation can recommend grant distributions to qualified charitable organizations. The donated funds are invested in the financial market, so they have the ability to appreciate. According to the National Philanthropic trust, donor advised funds are the fastest growing charitable giving vehicle, with more than 100,000 donor advised accounts established holding over $17.5 billion in assets. If you’re like many upwardly mobile professionals in South Florida that believe in the importance of giving but wouldn’t mind certain tax advantages while doing so, a donor advised fund is a great place to start. They’re easy to set up and most funds allow you to contribute as low as $10,000 to start and unlike foundations, can be set up very quickly and there are no set up costs. Rod Kemp, Director of The Real Estate Investment Group states, donor advised funds helps us to be more resourceful, allow us the privilege to make a difference in society, start a legacy of giving and enjoy certain tax advantages. The funds qualify as public charities, so you get an immediate deduction on the fair market of the investment. If you would have elected to start a private foundation, the tax deduction would be limited to your cost basis. Assets in the fund are not subject to estate taxes and appreciate tax free so you’ll hopefully have more time to give to your favorite charities in the future. You can also reduce year end pressure by separating the decision process of obtaining a tax deduction then selecting a charity. Many of us want to take our time when selecting a charity to donate to. DAF’s allow you to take an immediate tax deduction and then take the time to research before selecting the charities you wish to contribute. An added benefit of donor advised funds is the use of a transmittal letter. For those of you who wish to benefit the community without the concern of being overwhelmed with charitable solicitors, the letter allows you to instruct the recipient to acknowledge the grant to the donor advised fund instead of the donor. The Gates’ may be inundated with requests but you won’t have to. For questions or more information on donor advised funds, please contact Bernard Lee Managing Director, Laurus Wealth Management, or call 1-877-LAURUS-6. Securities and Investment Advisory Services offered through H. Beck, Inc., Member FINRA/SIPC. Laurus Wealth Management and H. Beck, Inc. are not affiliated.