Looking for a way to give to disaster relief organizations that will help you, too? Donor-advised funds, long provided by local community foundations, in recent years also have been offered by major financial firms such as Fidelity, Vanguard and Charles Schwab. With these funds, donors make irrevocable gifts and claim an upfront deduction for the full value of the donated assets.
After you make such a contribution, you can recommend to the sponsoring charity the amount and timing of gifts to various recipients. The actual charitable donations from your fund (the “grants”) may be spread over a period of years so you retain the ability to submit grants from assets that you’ve already given away, keeping control of the money. If a charitable grant recipient later seems on better financial footing or adopts unwelcome policies, future grants can be directed elsewhere.
After your death, beneficiaries you have named-often your children-take over the advisory role. Then they can decide upon the charitable grants from the account, year after year. Not only will your children be given the opportunity to think beyond their own needs, to the needs of others, they’ll benefit from future social connections. When other community members become aware of their grant-making powers, your children may be invited to serve on charitable and civic boards, for example.
