Donor Advised Funds
John and Cheryl Thompson have been faithful supporters of a variety of charitable organizations for many years. They would like to have a more efficient and effective way to administer their giving. A doctor who was already a Foundation client suggested they talk to us.
When the Thompsons came to discuss their situation, they were contributing to more than thirty different organizations. Many of their gifts were regular monthly support checks to a variety of missionaries in addition to their church and other ministries. Cheryl was handling all of the accounting for this which meant writing the checks and keeping track of the receipts and then organizing everything for their accountant at year-end to prepare their tax return.
The Thompsons chose to set up a Donor Advised Fund with Dallas Seminary Foundation. Now, instead of writing dozens of checks every month, they make two or three large contributions to their own private fund each year, which simplifies the tax return preparation. They instruct the Foundation where they would like the funds sent, and we do all the administration. We send them a confirmation of the distributions made from their account. In addition, we send them quarterly and annual reports showing what has gone into the fund, its earnings, the management expenses of the fund, and the disbursements that have been made. This greatly reduces their paperwork and simplifies their charitable giving.
Later, the Thompsons worked with the Foundation to establish an estate plan which put in place the procedures they wanted followed when the time came to distribute their estate. They are very pleased with the Foundation?s involvement in helping them facilitate their charitable planned giving desires. These plans and programs have enabled them to be more organized and efficient in their charitable giving, reduce their taxes, and increase their giving to charity.