An increasing number of families have learned that DAFs are flexible, tax-efficient tools for philanthropic giving that expand community impact and foster family engagement. While this trend is positively impacting philanthropy across North Texas, we know the largest growing segment of new DAFs are with commercial providers. Do you or your client have a DAF with a national financial institution?
While discussing your clients’ financial, philanthropic, and estate planning goals, it’s essential to ask the right questions: Do they have a commercial DAF? If so, who is the provider? And most important – Do they feel fully supported in their philanthropic efforts?
Often, your clients may be aware of Communities Foundation of Texas (CFT) because we host and convene many community events and bring attention to critical community initiatives and local nonprofits through North Texas Giving Day.
However, they may not know that we can help them establish a DAF, provide more personal service, create deeper connections to the organizations in the community they support, and, in conjunction with their professional advisor, discuss how a DAF at CFT is an excellent and much more customized estate planning option.
So, why should you consider talking with your clients about moving their DAF from a national institution to CFT? Below are the ways both you and your clients may benefit by partnering with CFT.
Tax and Administrative Benefits
CFT offers DAF holders the same tax and administrative advantages as commercial funds:
- Online access for clients to view fund balances, contributions, and grant history
- Simple grantmaking process to request support for their favorite charities
- Back-office support for fund administration, tax receipts, consolidated tax reporting, recordkeeping, and compliance with 501(c)(3) requirements
- Favorable tax deductibility for contributions, including gifts of cash, securities, and complex assets
Personalized Services for DAF Holders at CFT
Unlike many commercial DAF providers, CFT offers individualized support for our fundholders while working side by side with professional advisors to provide expert guidance for their clients. Whether that is assistance with grantmaking or estate planning, CFT can help your clients not only achieve their philanthropic goals but also continue to drive meaningful support for the charities they love most.
Below are some of the benefits of working with CFT:
- Tailored service by knowledgeable staff available to collaborate with professional advisors to structure customized estate gifts and legacy plans
- Acceptance of gifts of appreciated stock, real estate, closely held business interests, and other noncash/illiquid assets like artwork or jewelry
- Dedicated team with expertise on community needs across North Texas, nonprofit effectiveness, and strategic grantmaking options to maximize gifts made by CFT fundholders
- Opportunities to collaborate with peer donors with similar philanthropic interests and access to forums featuring local and national experts
- Opportunities for fundholders and their families to focus on specific issue areas in the community through immersive education and hands-on involvement
- Family and corporate philanthropy services to foster long-term, multi-generational charitable engagement
- Administrative fees that are reinvested in the community, supporting local operations and amplifying CFT’s mission to build thriving communities for all
- Passionate staff with deep community roots who maintain close relationships with nonprofit leaders and stay attuned to emerging needs
- Opportunities to continue working with a preferred investment advisor or wealth manager
Partnering with CFT
It is easy to move a fund to CFT. When your clients move a commercial DAF to CFT, we serve as both a partner to your client and to you. Below is the process we can work through together to transfer a DAF:
- Collaborate with CFT to establish a new DAF. We will work with you and your clients to complete our simple documents. From there, we can identify the charities or causes they wish to support, or continue to support, as well as potential successor advisors and their legacy plan.
- Work with your client to request a grant of the balance of the fund from their commercial DAF to CFT. Designate the Communities Foundation of Texas as the grant recipient and provide the name of the new DAF.
- Designate the Communities Foundation of Texas as the grant recipient and provide the name of the new DAF.
- Before closing their commercial DAF, your client should download the grant history and contribute information for future reference and tax documentation. Note, there are no tax considerations when moving a donor-advised fund.
We look forward to working with you and your clients to make the most of their charitable giving. By helping your clients move their commercial DAF to CFT, you are providing invaluable tools and support that will allow them to continue making a lasting difference in their community now and in the future.
Questions? Contact our team of experts anytime.
