Donor Advised Funds

Gifts from donor advised funds

Some members of the Stepping Stones community have created Donor Advised Funds and make contributions to the school directly from those funds. 

What is a donor advised fund?

A Donor Advised Fund is created by a donor either with a qualified foundation or charity or with a brokerage firm and is funded by irrevocable transfers of assets to the fund. Once assets are transferred to the account, the donor receives the maximum allowable charitable deduction for the fair market value of the assets. The donor retains the right to manage investments in the account. The donor can then direct gifts from the Donor Advised Fund to the charity. These transfers are free from capital gains tax on any appreciation. The account is also not subject to any income tax.

Should i use a donor advised fund?

The benefits of a Donor Advised Fund depend on the goals of the donor. Donor Advised Funds are great if you want to invest and manage assets to make gifts once those assets have appreciated. Some donors also use Donor Advised Funds to allow their children and family to participate in decisions about where to direct gifts. If you want to make a gift directly to Stepping Stones immediately, a direct transfer of assets may be a better vehicle for giving.

If i want to direct a gift to stepping stones from a donor advised fund, what should i do?

The manager of your Donor Advised Fund will make sure that the gift is either transferred to Stepping Stones through a direct transfer of assets or by liquidating assets in the Donor Advised Fund and issuing a check to the school. Each financial institution has its own process for making the gift.

If a QCD is not the best way for me to make a gift, what are some other options for giving to stepping stones?

Donations by Check, directly to Stepping Stones Montessori
Online Donations
Legacy Gifts
Qualified Charitable Distributions
Gifts of Stocks and Mutual Funds