What is a Donor Advised Fund?
A restricted account established at MBF by a donor periodically distributes earnings and/or principal from the Fund to one or many different ministries.
A donor wants to make a current gift that will qualify for a current income tax deduction. However, it is desired that the distributions be made at varied times over multiple years to support ministries to be determined after gift(s) have been made.
Donor and MBF develop an agreement that will govern the donor advised fund account. Donor initiates the fund with an immediate contribution. Future contributions may be made as well. The agreement provides a means for the donor(s) and other designated family members to give advice through the years as to the ministries they would like to see benefit from fund distributions.
Multiple Giving Opportunities – Contributions may be made in varying amounts at many different times. Some donor advised funds may receive gifts from many contributors. Additions may also be made by estate bequests. Gifts may be made in the form of cash, financial securities, mutual funds, real estate, life insurance and retirement fund designations, and many other ways.
Current Tax Deductions – Contributions made during lifetime may qualify for federal income tax deductions at the time the gift is made. Additions from an estate settlement may qualify for federal estate tax deduction.