Golden anniversary for golden opportunities

When Jeffrey Wellek, an investment professional in Chicago, heard his parents were looking for a way to give that would bolster the Jewish community, he recommended they set up a Donor Advised Fund-a DAF-through the Jewish Federation of Chicago.

For Wellek and his parents-as well as anyone who would like to tailor their donations to a variety of charitable organizations over time-DAFs are an ideal option for donating and saving money.

“A lot of people like to think of them as charitable checking accounts,” said Rose Jagust, Vice President of Donor Advised Programs at Federation’s Center for Jewish Philanthropy.

To create a DAF at Federation, a donor puts a minimum of $1,000 into a fund that can be taken as a charitable deduction on their tax returns. The money then sits in an account that can be invested for tax-free growth and the donor can recommend donations to 501(c)(3) public charities. Federation then reviews and sends the money to the organization, provided the charity’s interests don’t conflict with those of the Jewish community.

Supporting the Jewish community-as well as charitable giving in general-has been one of Federation’s goals for the 50 years since the program began. Each year, the program grows-and in the last 10 years, DAFs at Federation have made the remarkable leap from managing $99.2 million to $273 million in assets and have allocated $495 million in grants.

In the last year alone, 10,371 grants totaling $54.6 million were awarded to Jewish and secular charities in Chicago, Israel, and beyond. “This amount of money does an incredible amount of good in the Jewish and secular communities,” Jagust said.

And it’s good for donors’ financial health, too. One of the main benefits of a DAF is the ability to time charitable donations, which can help with taxes in a year with high income. Gifting appreciated assets, such as stock, to a DAF is also advantageous as donors can bypass capital gains tax.

“Every year, I contribute appreciated stock to my DAF that will cover my annual giving,” said Ila Lewis, long-time fund holder. “Then, I make my gifts to the JUF Annual Campaign, to Hillel, and other causes that matter to me. I even use it to cover my synagogue dues at North Shore Congregation Israel.”

While some financial institutions offer DAF programs, the Jewish Federation offers a uniquely low fee to help donors’ dollars get to the places they need to go. Staff like Jagust are also available to help donors figure out the best way to maximize their giving and find organizations to support that match their personal and communal goals.

Also known for their convenience, DAFs offer the option to donate to multiple charities at once.

“DAFs are an easy way to handle philanthropy if you give to lots of different places,” Jagust said. “Donors receive one letter for tax time instead of collecting receipts from the different places they support.” Federation also sends biannual statements to help donors keep track of where money has gone and plan for the future.

Federation’s DAF program has also been looking ahead in its monumental 50th year. “We’re hoping for bigger and better,” Jagust said.

And in an environment where “DAFs have been the fastest-growing form of philanthropy in general for years”-according to Ron Krit, Assistant Vice President of Endowment Development at Federation-the future looks bright.

In addition to new donors, the future of DAFs is also sustained by people like Wellek, who helped his parents set up and manage their fund after opening his own. When his three sons had their bar mitzvahs, he opened funds for them, too.

“With my parents being such great role models for giving, I wanted to do the same for my kids,” Wellek said. “Having a DAF shows my children that giving is a long-term commitment…. My hope was to instill in them that philanthropy is important.”

If you are interested in learning more about the Federation’s Donor Advised Fund Program and how you can simplify your giving, contact Rose Jagust at 312-357-4954 or [email protected] .