Most everyone is familiar with the Geico gecko. His tiny, green body and astute accent have become synonymous with insurance coverage. But do you remember the mascots who really put Geico on the map? They were hairy Neanderthals who perfectly illustrated how easy it is to get coverage online. “So simple… even a caveman can do it.”
Part of the campaign’s success was how the cavemen helped to simplify the insurance process, making it accessible to anyone. What if there was a way to remove the guesswork from charitable giving? Donor-Advised Funds (or “DAFs”) may be your answer.
DAFs (also sometimes referred to as “giving funds”), date back to the 1930s but are experiencing explosive growth. In fact, they are currently rated the #1 planned giving tool by over 400 charities across the United States. DAFs are growing in popularity for a few reasons:
- They’re simple. DAFs let you support multiple charities from one account whenever you feel led to give.
- They’re smart. Opening a DAF provides an immediate tax benefit, plus you’ll avoid capital gain tax on contributions of long-term appreciated assets.
- They’re flexible. DAFs give you options and control over how money is disbursed even after your death. You can structure a future gift or include your DAF in your Will.
- They’re legacy-building. DAFs provide a great way to teach giving to the next generation. Simply set up a DAF and invite your kids or grandchildren to help recommend charities you want to bless like. DAFs are perfect for giving together.
- They’re for everyone. Want to give anonymously? Need the flexibility to give a large or small gift? No matter your circumstance, DAFs are a great choice for charitable giving.
We like to think of financial planning and charitable giving as acts of worship. Shouldn’t the process be simple and enjoyable? Utilizing a DAF takes the guesswork out of giving and feels right in line with Matthew 11:30 where the Lord promises “my yoke is easy and my burden is light.”
DAFs give you an unbelievably easy way to give back to God for all the ways He’s blessed you throughout your life.