Generosity: Where the Heart and Wise Decisions Intersect

Fall is in the air, and many of us are thinking about the impact of our year-end contributions.  Organizations and ministries are sharing stories that speak to our hearts and move us to join in their efforts. Fall is also a time to make wise decisions that maximize our planning and community impact.  That’s where The Generosity Trust (TGT) comes in.

TGT helps donors steward the financial resources God has entrusted to them. A great way to simplify the giving process is to use a Donor-Advised Fund for both your short-term and long-term giving.

“My wife and I have a donor-advised fund at the Generosity Trust. It’s helped us be really intentional about the way we do our giving,” says Bart Rolen, President of Southeastern Trust Company. He and his wife automatically send funds from their monthly payroll to their DAF. As the account grows, they make grants on their own timeline. A helpful aspect of the fund: the tax benefits are immediate.

A DAF is beneficial at the end of the year. Now that we are in the final quarter of 2022, here are five reasons why a donor-advised fund is a great tool to help you steward your giving.

1. Give now, grant later.

Many people receive end-of-year bonuses as part of their compensation. They might want to donate a portion of these earnings but have not decided where to donate.

The solution: place these funds in a DAF, then wait until you’re ready to make grant recommendations to the organizations you care about most.

2. Get immediate tax deductions.

A DAF doesn’t just create a convenient place to set aside charitable giving. It also has tax benefits. Putting money in a DAF is a charitable donation, and you can deduct it from your taxes right away. Use a DAF when you receive your year-end bonus or an inheritance or when there is a liquidity event or an unexpected windfall.

3. Give non-cash assets.

When we think about giving, we often think of giving out of our bank account through cash, checks, or online portals. God calls us to respond to His goodness by being generous with all of our resources, even non-cash ones.

Many people hold most of their wealth in assets outside their bank account. A DAF makes it possible for them to transform it into grants to non-profits, schools, and universities, as well as churches and ministries.

4. Schedule your giving.

Donors often have an idea of how often they want organizations to receive their donations. With a DAF, you can set aside a lump sum, then make grants at your own pace.

This allows donors to be even more thoughtful about when, where, and how much they give.

5. Grant anonymously.

Finally, a DAF allows you to give without your name attached. Some donors prefer to keep their giving private, and a DAF shields donor names from public view.

This works because all donations coming from your DAF may show only The Generosity Trust’s name, if you wish.

Consider opening a fund this year

Now is the perfect time to open a donor-advised fund, as we near the end of the year. The Generosity Trust can help you set up a fund that will make it easier for you to be deliberate and focused in your stewardship of God’s gifts.

To get started, visit our website at thegenerositytrust.org/funds/donor-advised/.