How donor advised funds work

A DAF administered by Raymond James Charitable provides an easy way to make significant charitable gifts with immediate tax benefits and deductions. An agreement is created between you and Raymond James Charitable, which allows you to advise how portions of the charitable gifts are used.

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The benefits of a donor advised fund

DAFs serve as tax-efficient giving vehicles, offering many of the same benefits as private foundations while being easy to set up and maintain. Some of these benefits include:

• No capital gains tax on long-term appreciated assets that are gifted
• Immediate tax deduction for the full market value of the gift* for most assets
• No excise taxes, unlike a private foundation
• Assets donated are no longer part of the estate value
• No minimum annual distribution requirement for DAF account holders

Your choice

You will be asked to advise in four areas:

• How the money is invested within the options offered by the fund
• Which charities will ultimately receive grants from the fund
• How much will be given to each charity
• Who will make these decisions instead of or as a successor to you

To learn more about establishing a DAF, talk to your financial advisor. We recommend you work with your financial advisor alongside your legal and tax professionals to coordinate the most appropriate charitable solution for your situation.

*Any amount that can’t be deducted in the current year can be carried over and deducted for up to five succeeding years.

Essential information

Key considerations before choosing a DAF:

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Naming Raymond James Charitable as a beneficiary

As an individual, you have the opportunity to name Raymond James Charitable as a beneficiary of your will, trust, IRA, annuity contract or life insurance policy. By doing so, you can create a “planned gift” that will be distributed to Raymond James Charitable after your death. Because Raymond James Charitable is a 501(c)(3) public charity, naming Raymond James Charitable as a beneficiary functions like a charitable deduction. Raymond James Charitable will place the funds into the account you name at the endowment fund, invest the dollars for potential tax-free growth, and distribute the funds to charities you request at the frequency you desire.

Wills
You can leave money to charity in your will with a charitable bequest. Simply decide what percentage of your estate, dollar amount or assets you wish to give to Raymond James Charitable. Once the net value of your taxable estate is determined, your gifts typically qualify as charitable deductions. There are no limits on the amount that can be deducted for qualified charitable gifts against the estate tax.

Charitable trusts
Naming Raymond James Charitable as beneficiary of a charitable trust gives you the flexibility to support multiple charities even beyond the term of the trust and change your selected charities without requiring legal revisions to the trust documents. If you have an existing charitable remainder trust or charitable lead trust, it may be possible to switch your beneficiary to Raymond James Charitable.

IRAs, annuity contracts and life insurance policies
Another option is to name Raymond James Charitable as sole beneficiary on your IRA, annuity contract or life insurance policy, which also has the potential to reduce the size of your taxable estate. 

Keep in mind, for an insurance company to agree to issue a life insurance policy where the beneficiary is a charity, there typically have to be examples of giving in the past. This approach tends to work best for those who originally opened a policy to benefit a dependent who no longer needs the funds. To explore this option further, talk to your retirement plan advisor or life insurance provider

With this type of agreement, you can:

• Designate donor advisors who will make recommendations for grants and investments
• Request that periodic grants be made to a specific eligible charity (Raymond James Charitable can help you find a similar charity if your selection no longer exists)
• Request that periodic grants be made to eligible charities in one or more areas of charitable interest

To set up this type of arrangement:

• Complete and submit the Planned Gift Donor Account Application.
• In a will or trust, your attorney needs to use the legal name “Raymond James Charitable Endowment Fund” as the name of the beneficiary.
• Your attorney can also include “for the benefit of …” and mention the intended account name (e.g., the Smith Family Foundation).
• In the case of an IRA, annuity contract or life insurance policy, most beneficiary designation forms require the tax ID number of the beneficiary. The tax ID of Raymond James Charitable is 59-3652538.
• Have a consultant at Raymond James Charitable review the language to make sure it is set correctly before finalizing.

Naming Raymond James Charitable as a beneficiary

Naming Raymond James Charitable as a beneficiary

Naming Raymond James Charitable as a beneficiary

Naming Raymond James Charitable as a beneficiary

Naming Raymond James Charitable as a beneficiary

Naming Raymond James Charitable as a beneficiary

As an individual, you have the opportunity to name Raymond James Charitable as a beneficiary of your will, trust, IRA, annuity contract or life insurance policy. By doing so, you can create a “planned gift” that will be distributed to Raymond James Charitable after your death. Because Raymond James Charitable is a 501(c)(3) public charity, naming Raymond James Charitable as a beneficiary functions like a charitable deduction. Raymond James Charitable will place the funds into the account you name at the endowment fund, invest the dollars for potential tax-free growth, and distribute the funds to charities you request at the frequency you desire.

Wills
You can leave money to charity in your will with a charitable bequest. Simply decide what percentage of your estate, dollar amount or assets you wish to give to Raymond James Charitable. Once the net value of your taxable estate is determined, your gifts typically qualify as charitable deductions. There are no limits on the amount that can be deducted for qualified charitable gifts against the estate tax.

Charitable trusts
Naming Raymond James Charitable as beneficiary of a charitable trust gives you the flexibility to support multiple charities even beyond the term of the trust and change your selected charities without requiring legal revisions to the trust documents. If you have an existing charitable remainder trust or charitable lead trust, it may be possible to switch your beneficiary to Raymond James Charitable.

IRAs, annuity contracts and life insurance policies
Another option is to name Raymond James Charitable as sole beneficiary on your IRA, annuity contract or life insurance policy, which also has the potential to reduce the size of your taxable estate. 

Keep in mind, for an insurance company to agree to issue a life insurance policy where the beneficiary is a charity, there typically have to be examples of giving in the past. This approach tends to work best for those who originally opened a policy to benefit a dependent who no longer needs the funds. To explore this option further, talk to your retirement plan advisor or life insurance provider

With this type of agreement, you can:

• Designate donor advisors who will make recommendations for grants and investments
• Request that periodic grants be made to a specific eligible charity (Raymond James Charitable can help you find a similar charity if your selection no longer exists)
• Request that periodic grants be made to eligible charities in one or more areas of charitable interest

To set up this type of arrangement:

• Complete and submit the Planned Gift Donor Account Application.
• In a will or trust, your attorney needs to use the legal name “Raymond James Charitable Endowment Fund” as the name of the beneficiary.
• Your attorney can also include “for the benefit of …” and mention the intended account name (e.g., the Smith Family Foundation).
• In the case of an IRA, annuity contract or life insurance policy, most beneficiary designation forms require the tax ID number of the beneficiary. The tax ID of Raymond James Charitable is 59-3652538.
• Have a consultant at Raymond James Charitable review the language to make sure it is set correctly before finalizing.

To open a DAF account, please follow the steps below. The minimum initial contribution is $10,000.

1. Review our DAF brochures:

• Exploring Donor Advised Funds Brochure
• Donor Advised Fund Program Guidelines

2. Complete your application and contribution form(s).

• Donor Advised Fund Application
• See the Asset Transfer Instructions below for the correct form to use for your contribution.

3. Submit your contribution by mailing a check, wiring funds with a Gift of Outside Assets form or submitting a completed Raymond James Contribution Form to your financial advisor. If you do not have an advisor, you may email, mail or fax your completed forms to Raymond James Charitable.