“Donor-advised funds are accounts where you set aside money you want to give to charities, including churches, schools and other nonprofits,” says Mandy Tuong, president and CEO of
Why would you open one?
A donor-advised fund can help you stay focused on your priorities by budgeting your giving for today and the future. It even can help you work toward your retirement goals: You could put money into a donor-advised fund during your working years to build a giving fund to be used when you retire and your income is limited.
“These funds also provide teaching moments,” says Tuong. “Some families have their children help pick the donation recipients and even contribute some of their own money as they get older.”
Are there different types?
There are several:
- Advise-As-You-Go, where you decide how you want the funds invested, what charitable organizations to make grants to and when to give (you can give any time).
- Designated, for when you know the causes or charities you want to give to, and when you want to set an amount or percentage from your fund to be automatically granted annually while you’re living or after you’ve died. You can change the organizations that will receive grants at any time.
- Non-advised, where you name an organization to receive qualified charitable distributions when you open the account. The designated organization can’t be changed once it’s named.
Is there a minimum deposit?
“There’s no minimum requirement to open a donor-advised fund with Thrivent Charitable,” says Tuong. “While other fund administrators often require a minimum deposit amount, we’re proud to make this powerful generosity vehicle available to all.