We have established the Joel Byrne Let Goodness Shine (LGS) fund as a Donor Advised Fund (DAF) through the Arlington Community Foundation.
The Arlington Community Foundation is a A 501(c)(3) non-profit organization with a tax-exempt status granted on March 1, 1992 and a Certified Accredited Foundation by the Community Foundations National Standards.
What is a Donor Advised Fund:
In 2023, contributions to Donor Advised Funds amounted to almost $60 billion making this one of the most popular charity vehicles today. According to the National Philanthropic Trust
“A donor-advised fund, or DAF, is a giving account established at a public charity. The 501(c)(3) public charity serves as a sponsoring organization, which manages and administers individual DAF accounts.”
“DAF accounts allow donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time. Donors can contribute to the fund as frequently as they like, and then recommend grants to their favorite charitable organizations whenever it makes sense for them. This allows donors to give when they can, then grant when it’s needed.“
Why we use a DAF:
We chose this route for Joel’s foundation because it provides tax breaks and protections for donors without the extensive investment required to establish an independent foundation.
Donations are Tax Deductible and Protected:
Contributions to Let Goodness Shine are tax deductible and can be used to support nonprofits through direct grants. As a co-advisors, Monica and I make the decisions as to which charities to support and how much.
All of these protections are stipulated and strictly enforced by the IRS code. Examples of allowed and prohibited uses include:
Prohibited or Restricted Uses
- No grants that provide a personal benefit to the donor, family members, or related parties.
- No payments toward legally binding personal pledges
- No political donations
Allowed Uses
- Grants to IRS-qualified 501(c)(3) public charities (the primary permitted use).
- Granting to charities that provide goods/services to others, as long as the donor receives no personal benefit.
Any questions about the tax exempt status of Let Goodness Shine or the Arlington Community Foundation, don’t hesitate to contact us or the Arlington Community Foundation themselves.
