WIN-WIN-WIN!!

FARIBAULT FOUNDATION - A “WIN-WIN-WIN” FOR YOU AND OUR COMMUNITY

Todd Markman

It seems like every time you turn around there’s a benefit for a worthwhile cause in our lives and community.  The needs are widespread, ranging from food insecurity to personal illness to many of our favorite nonprofit organizations and kid fundraisers.  We all want to help, but we only have so much money and our seemingly small gifts aren’t near enough to solve all the issues.  But wait…might there be a better way to gift more than you ever felt possible and benefit the programs of your specific interests for years to come?  I have found this “WIN-WIN-WIN” in a simple acronym – “DAF”: Donor Advised Fund.

To be honest, I had never heard of a “DAF” until recent years.  While serving on the Board of our local Faribault Foundation, I was introduced to this meaningful gifting concept.  By definition, a DAF is a simple, advantageous way to give to your favorite charities.  Donor Advised Funds are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to charity. 

Let’s look and see why.

Here in the United States, we are experiencing the largest transfer of wealth in history, and this is expected to last for the foreseeable future.  When and where is this happening?  You may be someone who has saved diligently for many years through 401K wages savings and taking advantage of several “bull” stock market streaks and now realize you have more than may ever need.  On top of your savings, you unexpectedly experience a large inheritance, or income from sale of farmland or other real estate properties, or maybe the sale of your business, or sizeable gains in stocks or investments.  Additional or unexpected sums of income are great; however, it also comes with a sizeable tax event.  The additional income on top of your normal annual income can easily move you into a higher tax bracket creating a large tax bill next April 15.  A large slice of your good fortune is whisked away by your now favorite Uncle, Sam.

Working with Laura Bock, Executive Director of the Faribault Foundation, Inc.  in tandem with your trusted tax advisors, a gift to the Faribault Foundation is structured in a DAF allowing sizeable tax relief.  This means you can keep more of your income and in addition have a DAF at the Faribault Foundation to give dollars to your charities of choice.  And the best part – you can structure your gifts over several years to many causes.  You choose how much and when.  The donations can be local or even national causes. Gifts must be given to registered 501C-3 organizations, but can also be directed to a faith community, or even your alma mater!

It really can be that easy and becomes a WIN-WIN-WIN.  You win by saving taxes and having funds to give to your charities of choice.  The Charities win with your gift at their time of need.  And the Faribault Foundation wins by investing your DAF, growing the assets of the foundation, and making impactful grants to local charities. 

It all may seem too good to be true, but I challenge you to seek out Laura or any of the fine local board members of the Faribault Foundation and give them a chance to show you an easy heartfelt WIN-WIN-WIN!

Todd Markman is the President of Reliance Bank, and Board Member Emeritus of the Faribault Foundation. He was among the communmity leaders that started the Faribault Foundation over 25 years ago.