SUNSTONE COMMUNITY FUND

Donor-Advised Funds (DAF) are charitable accounts established at a public charity.

Donations are made to the DAF, managed by a trust or foundation, which then issues disbursements at the direction of the fund owner (Sunstone Community Fund).

A DAF enables donors to make charitable contributions without establishing a separate nonprofit, allowing for more money for distribution in the long haul. Grants must be made to nonprofits, which include educational institutions.

There are multiple tax advantages to DAF donations. The entire income tax deduction can be taken the year the donation is made, but distributions can be made over several years. Donation of appreciated assets like stock, real estate or other investments to a DAF avoids capital gains taxes. DAFs also allow higher deduction limits.