Give to ABWE's Work
Donor Advised Fund
What is a donor advised fund?
It is a plan that allows a donor to make one, or a series of gifts to ABWE FOUNDATION. This can be in the form cash, securities or real estate. These gifts establish a Donor Advised Fund (D.A.F.) The donor retains the ability to advise or direct how fund’s income, or income and principal, are to be distributed for charitable purposes.
Who can receive distributions from the fund?
A recipient of the fund’s distribution must qualify as a charitable organization. While ABWE could be one of the beneficiaries, qualified organizations outside of ABWE can also receive income, or income and principal. ABWE retains the right to review and approve gifts to other organizations to assure compatibility with our doctrinal position and general exempt purposes.
Tax Benefit
Gifts used to establish the Donor Advised Fund and any future additions are tax deductible to the donor when contributed, regardless of when grants are made. Note: Distributions from the Fund are gifts from ABWE, and not tax deductible to the donor advisor.
Fund Options
- An “Operating Fund” - This means the principal and income is distributed regularly or periodically as advised by the donor until depleted.
- An “Endowment Fund” - The fund pays out income only, while preserving the principal.
Fund Purpose
This means how and to whom the donor wants the income to be paid. This can be established in advance or recommended to the FOUNDATION from time to time.
ABWE Foundation Responsibilities
- Provide the expertise for establishing the Donor Advised Fund
- Provide the administration of the Fund:
- Investing
- Accounting
- Making payments
- Appropriate tax information
- Ongoing financial counsel
Giving Options
Specific Option
- Missionary support
- Missionary projects
- A church
- A college or seminary
- A radio ministry
- Any approved organization as outlined under “who can receive distributions from the fund?”
Field of Interest Options
- Education
- Building
- Medical
- Aviation
- Evangelism
Summary
The Donor makes an irrevocable gift of cash, stocks, bonds or real estate to the ABWE Foundation.
The Donor:
- Chooses the investment option for his fund
- Takes an immediate allowable tax deduction, avoiding capital gains
- Recommends grants to charities of his choice
- The fund grows “tax-free” until grants are made
- Can name successors to carry on donor advisement responsibilities
- Can make additional gifts to the fund
- Can be named with the grant or remain anonymous
ABWE Foundation:
- Handles the details of converting appreciated assets
- Issues grants to charities as advised, on a timely basis
- Provides reports to the donor
- Carries out the management of the fund
- Maintains all the records
- Offers ongoing financial planning advice
- Provides continuity to successor advisors
More Information
For information and consultation: (800) 921-2293 or plannedgiving@abwe.org