A donor advised fund (DAF) is a simple tool that individuals can use to administer their philanthropic dollars, much like a charitable savings account. At Liberty Hill, we provide philanthropic knowledge, expertise and administration, while hleping charitable donors manage and disburse their funds by connecting them to cutting-edge social justice organizations doing impactful work in Los Angeles and beyond.
Advantages of Opening a DAF
A donor advised fund at Liberty Hill may be right if you
- Receive a large inheritance or other financial windfall.
- Need an immediate tax deduction but want to give grants over time.
- Want a foundation-like structure without the costs and administrative complications.
- Want to reduce email, mail and phone solicitations from organizations.
- Want expert advice to ensure your contributions are making a difference.
- Want to join a community of donors and activists rooted in a strong sense of shared mission.
Opening a DAF account at Liberty Hill is easy and affordable. A DAF allows you to give more to the causes and organizations you care about most, while maximizing the tax benefits of charitable contributions. With Liberty Hill's 40 years of philanthropic expertise at your fingertips, you name your fund, contribute assets to your account and recommend your grantmaking decisions. The low annual fee of 1.25% decreases with account size and is reinvested in Liberty Hill and our ongoing social change work.
Opening a DAF with Liberty Hill
The steps to opening a DAF with Liberty Hill are simple.
Opening a DAF puts charitable, financial and personal benefits at your disposal, including
- Six investment options, which feature socially responsible and gender lens investing for your DAF balance, exempt from capital gains.
- The ability to deduct up to 60% of your adjusted gross income for gifts of cash and 30% for securities.
- A five-year carry-forward of allowable tax deductions.
- Issue-based advising and customized consultation from Liberty Hill.
- Expert vetting of organizations and due diligence by your dedicated relationship managers.
- Opportunities to learn and engage, including giving circles and philanthropy workshops.
- A secure online portal to track your giving history and make new grant recommendations.
- A legacy for your successors and your philanthropic vision through planned gifts.
- All accounting, auditing, and tax filings handled for you by Liberty Hill.
Giving Circles: Many DAF holders also take the opportunity to join one of the giving circles housed at Liberty Hill, enjoying a collective learning and grantmaking experience with other donors. These giving circles focus on a variety of causes, from uplifting Black communities to environmental sustainability, LGBTQ equality and empowering women and girls in Los Angeles.
Establish Your DAF: Donor Advised Funds may be opened at Liberty Hill with a minimum contribution of $10,000. Contact Liberty Hill's Director of Philanthropy at 323-556-7203 to discuss the details of your DAF and obtain a Memo of Understanding.
We help our DAF account holders to become the most informed and effective donors they can be. Together, we invest in the lives of all Angelenos.
Considering a DAF or Private Foundation?
Compared to establishing or operating a private foundation, a DAF is more flexible under IRS rules, and extremely cost-effective.