President's Circle Legacy Society

Donor Advised Fund

Donor Advised Funds infographic

A donor-advised fund (DAF) is a giving vehicle established with a community foundation, investment advisor, or bank trust department.

  • A DAF allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time.
  • Donors recommend grants to nonprofits, including faith-based and educational institutions, for charitable purposes only.
  • Grants go to public non-profit organizations that are recognized by the IRS. No grants to individuals are allowed.
  • Although private foundations are exempt from federal income tax, their investment income is subject to an excise tax of 1 or 2 percent, whereas growth of a donor-advised fund is not taxed.
  • When your estate makes a contribution to a DAF at your death, there may be estate or inheritance tax benefits, in addition to income tax benefits.

While DAFs make up only 12 percent of individual giving, today these funds are growing faster than any other form of philanthropy, according to a recent study by National Philanthropic Trust. Contributions to A DAF funds grew 20.1 percent in 2018 and assets reached $121.4 billion.*

Montreat College receives regular DAF contributions that support student scholarships and college operations each year. Here are a few examples:

* Retrieved from https://www.consumerreports.org/charitable-donations/donor-advised-funds-things-to-know

Aerial photo of Montreat Service

Not sure how to get started?

Answer a few simple questions, and we’ll point you down the right path.

Want to speak with someone at the college?

Joe Kirkland

Joe B. Kirkland
Counselor to the President, Planned Giving
828.419.2045
joe.kirkland@montreat.edu

Next Steps

  1. Contact Joe Kirkland, Counselor to the President – Planned Giving, at 828.419.2045 or joe.kirkland@montreat.edu for additional information on planned giving.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Montreat College in your estate plans, please use our legal name and federal tax ID.
    1. Legal Name: Montreat College
    2. Address: P.O. Box 1267, Montreat, NC 28757
    3. Federal Tax ID Number: 56-0543261

Learn about the many benefits of a charitable gift annuity in our FREE guide.