Amplify Your Giving by Leveraging Field of Interest and Designated Funds
As you consider your year-end giving strategy, are you thinking about transferring cash, or ideally appreciated stock, to your donor advised fund? By doing so, you can maximize tax benefits and support the charities you love.
Donor advised funds are an incredibly important component of your giving plan, but there are a variety of fund types designed to help meet your charitable goals. Your philanthropic advisor at Greater Cincinnati Foundation (GCF) is eager to help you make the most of your giving and can walk you through options.
Two excellent fund types that are sometimes overlooked are designated funds and field-of-interest funds.
When you set up a field-of-interest fund at GCF, you’re setting aside charitable dollars for a specific charitable purpose. For example, you might decide to set up a field-of-interest fund to support access to high-quality education; assistance for families experiencing homelessness; bolster funding for regional art museums, and so on.
With a field-of-interest fund, you’re leaning on the knowledgeable team at GCF to distribute grants to achieve your wishes.
A designated fund is a good choice if you know you want to support a particular charity or charities for multiple years. This is useful so that the distributions can be spread out over time to help with the organization’s cash flow planning. This also allows you to potentially benefit from a larger charitable tax deduction in the year you establish the fund if, for example, your tax rates are higher than usual in that particular year. Your designated fund document allows you to specify the charities to receive distributions according to a spending policy you select.
Are you approaching or over the age of 70 ½?
If you are over the age of 70 ½, pay particular attention to designated funds and field-of-interest funds as year-end approaches because these two types of funds, unlike donor advised funds, can receive “Qualified Charitable Distributions” from IRAs – up to $105,000 per person in 2024!
As always, thank you for the opportunity to be your partner in philanthropy. Please, don’t hesitate to reach out to your Philanthropic Advisor at 513-241-2880.
