A strategic approach to your philanthropy
When developing your charitable giving plan, a donor-advised fund (DAF) is a compelling strategy to consider. A DAF is a charitable giving vehicle that is easily established, simple to use, cost-effective and tax-efficient.
DAFs offer multiple advantages that range from unique tax benefits to ways to be more nimble and strategic with your philanthropy. You can:
- Establish an enduring philanthropic legacy
- Receive immediate tax deductions for contributions to your DAF
- Eliminate capital gains tax on contributions of appreciated assets held long term
- Invest donated assets so they may grow tax-free
When you set up a donor-advised fund with J.P. Morgan Private Bank, you choose where the charitable donations go, while we handle everything else.
Seamless account opening
Our team can quickly set up your DAF account at little to no cost, and with a minimum initial contribution of $10,000.
Donate over time
With a DAF, you can contribute without having to decide immediately where that donation will go. This allows an income tax deduction right away, while letting you give when you’re ready.
Privately held stock
When donating non-marketable assets, (e.g., privately hold stock or hedge fund interests) to a DAF, your tax deduction is based on the assets' fair market value. The deduction for the same assets to a private foundation is typically limited to the donor's cost basis.
Diversify a concentrated portfolio
Our team can help you contribute appreciated, publicly traded stock to a DAF to reduce your concentrated position and put the proceeds towards charity.
Ready to invest in services? Find the right strategy with J.P. Morgan Advisor today.
What are the DAF’s investment options?
These can vary widely, with some organizations offering few, and others providing a broad array.
How flexible is the choice of charitable recipients?
Gain an understanding of how charities are determined to be qualified by the sponsoring organization and how easily another charity may be added. Possible recipients, and the process for adding charities, can vary among DAFs.
Does the sponsoring organization accept “unique or illiquid” assets?
Not all DAFs will accept the assets that a donor might seek to give, such as appreciated stock or real estate.
Does the DAF make grants directly to international charities?
If you want to give to an international charity, there are tax and reporting implications, among others.
J.P. Morgan’s Charitable Giving Fund is a donor-advised fund program administered by National Philanthropic Trust, a public charity and the largest independent sponsoring organization of donor-advised funds.
Impact at a Glance (2021)
- Supported nearly 12,000 individual charities
- Donated to charities in 25 different countries
- 60% increase in year-over-year grant value
Source: Information for the J.P. Morgan Charitable Giving Fund as of December 31, 2021. National Philanthropic Trust
Private foundations and donor-advised funds
Our advisors can help you determine whether a DAF can complement your foundation as part of your giving strategy. A DAF allows your private foundation to donate to nonprofits whose work falls outside of the foundation’s mission statement, donate to non-U.S. charities and more. If you’re seeking to simplify your giving strategy, J.P. Morgan can help you transition your private foundation to a donor-advised fund account. You and your family will retain the ability to be advisors through a simple process.
We’re committed to offering our clients a flexible donor-advised fund solution which allows them to implement impactful giving strategies.
