Donor-Advised Funds

Understanding Donor-Advised Funds:

A Donor-Advised Fund is a charitable giving vehicle sponsored by a public charity that allows you to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time.
DAFs are administered by sponsoring organizations such as community foundations, financial institutions, or single-issue charities.
When you contribute to a DAF, you irrevocably give up control of the assets, though you retain advisory privileges regarding their distribution and investment.
The sponsoring organization has legal control over contributions and has ultimate authority over how funds are invested and distributed.

Grant Recommendation Process:

To support Hospice of the Northwest Foundation from your DAF, you recommend a grant through your DAF sponsor’s normal process.
Grant recommendations can usually be made online through your DAF sponsor’s website, by phone, or by mail.
Most DAF sponsors will process your recommendation within a few business days, though processing times can vary.
There is typically a minimum grant amount (often $50 or $100) set by your DAF sponsor.
Using our FreeWill DAF tool can simplify the process of recommending a grant to our foundation.

Tax Considerations:

You receive a tax deduction when you contribute to your DAF, not when grants are made to charities like Hospice of the Northwest Foundation.
Contributions to a DAF may be tax-deductible up to 60% of your adjusted gross income (AGI) for cash and up to 30% of AGI for appreciated securities or other assets.
DAFs allow you to donate appreciated assets without incurring capital gains taxes.
There is no additional tax benefit when you recommend a grant from your DAF to our foundation.

Important Limitations:

DAF grants cannot be used to fulfill legally binding pledges you’ve made personally.
Benefits received in exchange for DAF grants are limited—you, your family, or your business cannot receive more than incidental benefits from a DAF grant.
DAF grants cannot be used to purchase tickets to events, memberships with substantial benefits, or auction items.
You cannot use a DAF to make a Qualified Charitable Distribution from an IRA.

Getting Started:

If you already have a DAF, you can recommend a grant to Hospice of the Northwest Foundation using our legal name and tax ID: Skagit Hospice Foundation dba Hospice of the Northwest Foundation, Tax ID#/EIN: 91-2094964.
If you don’t yet have a DAF but are interested in establishing one, you can consult with your financial advisor or contact major DAF sponsors like Fidelity Charitable, Schwab Charitable, or your local community foundation.
For assistance with making a grant from your DAF, please contact us at (360) 814-5702 or foundation@hospicenw.org.

This information is provided for educational purposes only and is not intended as legal, tax, or financial advice. Please consult with qualified professional advisors regarding all financial, tax, and legal matters.