Donor-advised funds

By Mike Miller
LVJF Endowment Chair

Opening a donor-advised fund (DAF) at the Lehigh Valley Jewish Foundation (LVJF) empowers you to offer essential financial backing to the charitable causes that resonate with you the most. 

A philanthropic DAF with the LVJF is an investment in our community and an efficient way to manage charitable giving to make the greatest possible difference where there is the greatest need. With tax benefits, unique opportunities for multi-generational giving and a variety of ways to establish this vehicle with a beginning balance of $10,000 or more, a DAF is an impactful way to ensure our Jewish communities remain vibrant and strong, now and in the future. 

Donors can create an individual investment account in the LVJF for the purpose of increasing their charitable impact, while reducing their tax liability. It is owned by LVJF, but the donor has the right to recommend how money (principal and income) is distributed to qualified 501(c)(3) charitable organizations the donor cares about. The donor may attach a special purpose to the recommendations that will be relayed to the charity. LVJF conducts due diligence to ensure the funds granted go to an IRS-qualified charity. By donating stocks, mutual funds or other property, the donor can avoid any tax on the appreciation of the assets, if they have been held for more than a year and the full amount up to a specified percentage of the donor’s adjusted gross income is donated. The LVJF adds these contributions to its diversified endowment fund for tax-free growth.

Donor-advised Funds may support international charity work through recommended grants to U.S.-based intermediary organizations that operate to provide support to foreign grantees, such as “friends of” organizations. When a grant to a U.S. charity is specified for a foreign project or a foreign organization, Federation, as the grant-making organization, will confirm that the intermediary organization has the requisite discretion and control over how the funds will be used internationally. 

Federation will provide donors/fund advisors with quarterly statements showing beginning and ending assets, and the contributions to and grants from, as well as investment income, and expenses. Donor(s) may extend the advisory privilege during their lifetime to other individuals to be known as fund advisors. Additional provisions apply for successor advisors.