Donor Advised Funds (DAFs)

Over the past few decades, Donor Advised Funds have become an important part of many families’ philanthropic gift planning. You can establish a Donor Advised Fund at the University of Kentucky by gifting Cash, Securities, Closely-Held Stock, Real Estate or most other types of assets.

You will receive a charitable tax deduction based upon the fair market value of the gifted assets for the year of the contribution to establish your UK Donor Advised Fund. In the event you cannot fully utilize the deduction, it can be carried forward for up to five years under current statutes. You can also avoid capital gains tax on gifts of appreciated assets, and remove assets from your taxable estate.

Further, you can designate your UK Donor Advised Fund as the beneficiary of Life Insurance, a Will provision or Retirement Account assets. You can likewise transfer into your UK Donor Advised Fund assets which are currently held by your private foundation or commercial Donor Advised Fund.

Distributions from your UK Donor Advised Fund are made when you specify charitable organizations to receive grants. The University is partnering with the Bluegrass Community Foundation, located in Lexington, Kentucky, to facilitate and process grants from the UK Donor Advised Fund accounts. The Bluegrass Community Foundation will oversee the payments and ensure that all the administrative record keeping and tax reporting is complete.

You can designate your own investment advisor to manage your UK Donor Advised Fund assets. The UK Donor Advised Fund program will enter into a contract with your appointed investment advisor to manage your assets and facilitate the grant-making activity. If you do not wish to select your own investment advisor, your contributed assets will be managed by professional investment advisors retained by the Bluegrass Community Foundation.

A fixed portion of contributions and accumulated income in your UK Donor Advised Fund must ultimately be gifted to the University of Kentucky, or to one or more of its many colleges and programs. You can choose to support a particular area of the University one year, and a completely different area the next year. You can also direct continuing annual support to an area of interest with the University. With the remaining portion of your UK Donor Advised Fund, you can choose to support other charities such as religious institutions, community and cultural projects, and county-based agricultural extension and education efforts.

A UK Donor Advised Fund offers great flexibility. Through it, you can make lump-sum grants to charitable organizations, give a recurring fixed percentage or amount to one or more organizations, change your programs of support each year, or allow your Fund to grow over a period of time and then activate your philanthropic giving. There are no minimum annual distribution requirements.

You can also designate successor advisors to your UK Donor Advised Fund, such as children and grandchildren. Many families wish to carry on a legacy of philanthropic support. A UK Donor Advised Fund is a wonderful vehicle to encourage and provide resources for family members to participate in benefiting their communities, and in helping the University of Kentucky accomplish its historic mission in significant new ways.

 

For additional information, please visit http://ukdaf.bgcf.org/Home?

or contact
Ford Stanley, Senior Director of Estate and Gift Planning, Executive Director of University of Kentucky Real Estate Foundation
fstan2@email.uky.edu
(859) 257–7886