Understanding Charitable Giving Accounts

Individuals, families, businesses and organizations can set up a charitable giving account to achieve their philanthropic goals.

Read more about how the Shady Rest Foundation established a fund for positive aging. Shell Point Retirement Community also utilized CFI’s expertise to help them achieve their charitable goals. CFI is also now partnering with community leaders to rebuild the Sanibel Fishing Pier.  

By far, the most popular type of charitable giving account currently is a Donor-Advised Fund.

A Donor-Advised Fund (DAF) is one type of charitable giving account CFI offers to the community. There are several benefits for philanthropists looking to maximize their giving while enjoying financial advantages. You can establish a DAF with a pledge of $10,000 or more.

Here are the key benefits:

1. Immediate Tax Benefits

  • Receive an immediate tax deduction in the year you contribute to the DAF, even if you distribute grants over time.

  • Contributions of appreciated assets (stocks, real estate, etc.) avoid capital gains tax while providing a larger charitable impact.

2. Strategic & Flexible Giving

  • Support multiple charities over time while your donation grows tax-free in the fund.

  • No pressure to decide on a specific nonprofit immediately—donate when it makes the most sense for you.

3. Investment Growth for Greater Impact

  • When your donor-advised fund is established, you relinquish personal control of the donation to the Charitable Foundation of the Islands, which manages the investment on your behalf with the expert guidance of the Sanibel Captiva Trust Company.

  • Your contributions can be invested, allowing potential tax-free growth, which can lead to more money available for charity.

4. Simplified Recordkeeping

  • Consolidate all charitable giving into one account, reducing paperwork and simplifying tax reporting.

  • Receive one tax receipt instead of tracking multiple donation receipts.

5. Family Legacy & Engagement

  • Involve family members in charitable decision-making and create a long-term giving strategy.

  • You can name successors, continuing philanthropy across generations.

6. Privacy & Anonymity

  • If desired, grants to charities can be made anonymously, shielding your identity and personal information.

7. No Estate Taxes on Remaining Funds

  • Upon passing, any remaining funds go to charity without estate tax implications, ensuring a philanthropic legacy.

Laurie harkey and bill harkey - CFI DAF PArtners

Sam Boren and her husband steve king - CFI DAF Partners

“We spend half the year in Sanibel and wanted to be sure we were connected to an organization like CFI which knows our nonprofits and can help us make educated grant recommendations. We have DAFs in other cities, and we are very pleased with how our DAF is administered and managed right here on Sanibel.” - Sam Boren King