Are you looking for an easy, cost-effective way to support Rensselaer Polytechnic Institute and other causes you love? A donor advised fund, which is like a charitable savings account, may be the right choice for you.
Here's how it works. You transfer cash or other assets to a tax-exempt sponsoring organization such as a public foundation. You can then recommend—but not direct—how much and how often money is granted to Rensselaer or other charities—sometimes as easily as using a Web portal. And you avoid the cost and complexities of managing a private foundation.
You qualify for a federal income tax charitable deduction at the time you contribute to the account, and the power to make recommendations on which charities to support whenever you want. You centralize your giving and record-keeping in one location. And maybe best of all, you can start a legacy of giving by letting your children help decide which grants to recommend.
Check Out This Real Life Scenario
Barbara (SUNYA '64) and Carl Billhardt, RPI '64 are long-time Rensselaer donors who recently made a contribution to the Institute via a donor advised fund (D.A.F.) Their reason for using the D.A.F. approach was convenience. Like many investors, they own stocks that have appreciated in value over the years. Selling the stocks would trigger a significant capital gain tax liability and this liability would be even higher for stocks with an unknown cost basis. Donating to a D.A.F. eliminated both concerns and made it "so easy from an accounting standpoint." Also, the investment firm they used sponsored a D.A.F. so the amount of paperwork was minimal.
Although Rensselaer is near the top of their priority list, Barbara and Carl support other charities using the same D.A.F. They gain a single charitable tax deduction when making an irrevocable transfer of stock or cash to the D.A.F. They then support various charities, as the occasion or need arises, by making recommendations to the D.A.F. Barbara and Carl used their donor advised fund to make a significant gift in support of the Manufacturing Innovation Learning Lab at Rensselaer.
Support What Matters
Learn more about donor advised funds. View and download the FREE guide One-Stop Giving: The Convenience and Simplicity of Donor Advised Funds.View My Guide
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.
Not Sure How to Begin Planning?
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- Evaluate a sponsoring organization to make sure it supports your interests, values and the type of asset you are considering as a funding source.
- Get to know the organization's policies and procedures-from minimum contributions to administrative fees. Each organization handles these details differently.
- Seek the advice of your financial or legal advisor.
- Contact Art Tracy '92 MS at 518-276-2561 or firstname.lastname@example.org to discuss using donor advised funds to support Rensselaer and our mission.
- If you include Rensselaer in your plans, please use our legal name and Federal Tax ID.
Legal Name: Rensselaer Polytechnic Institute
Address: 110 8th St., Troy, NY 12180-3590
Federal Tax ID Number: 14-1340095
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.