Donor-Advised Funds:
A Flexible, Efficient Way To Give. For John and Marcia Porter, lifelong Presbyterians who have been married 45 years, giving is simply a way of life. “For pretty much all of our lives, the charitable causes we have given to were associated with the mission program of our local congregation and presbytery,” shared John. “That is one reason that we have really appreciated being able to use the Creative Gift Fund: the donoradvised fund of the Presbyterian Foundation.” A donor-advised fund is a flexible, creative way to give to multiple missions or causes within a single, centralized fund. Before using the Creative Gift Fund, the Porters would typically make stock gifts to their church—First Presbyterian in Kingsport, Tennessee—and make cash donations for smaller gifts. But the streamlined approach of the Creative Gift Fund has made both recordkeeping and tax time much easier for the couple.
“When we began using the donoradvised fund, our giving became a lot easier. We could make one gift to the fund, then direct it to different causes out of that fund.”
The gifts given through a Creative Gift Fund are not limited to Presbyterian causes, but can benefit many different organizations. The Porters are using their fund to support the First Presbyterian Church of Kingsport, the local United Way, the YMCA, the Interfaith Hospitality Network of Kingsport, Grandfather Home for Children, Agnes Scott College, and King College.
10
Listen. Learn. Do.
2011 Annual Report 6-5-12 11-12704.indd 10
“Our gifts are mainly to institutions and to programs that we have actively worked in and continue to support,” said John. Because the Porters both have financial backgrounds, they can really appreciate the benefits and flexibility of a donor-advised fund. During her career, Marcia often advised clients about the timing of contributions, including tax efficient strategies. “After we set up our Creative Gift Fund, we were able to transfer gifts from appreciated securities to the fund at any time.” Marcia said. “That allowed us to employ market timing in making our gifts.” The couple also chose to make their most significant gifts into the fund before their retirement. “We were both ending our careers and entering retirement, so the tax benefits from our assets were greatest when we had the most income,” Marcia said. However, by giving to the fund rather than directly to a charity, Marcia and John were able to take as much time as they wanted to make decisions about distributing their gifts. “That allowed the assets in our fund to grow in the investment portfolios of the fund.”
It is this flexibility in timing that has been most advantageous to the Porters. Prior to using the fund, the Porters had to distribute money at the same time that it was being donated, which is not always ideal. “We really appreciate that we can make equity allocation decisions for assets in our account when we think that a change is warranted,” said Marcia. “I feel that John and I have been given so much. We have been blessed and we have a responsibility to go forth and share that,” said Marcia. John agreed. “As we grow older and are confronted with opportunities where we think we can help, we have seen more and perhaps have a broader perspective on what the needs are in the world,” he said. “‘To whom much is given, much is required’—that’s scripture.” (Luke 12:48) For the Porters, the Creative Gift Fund has connected their lifelong commitment to giving with their financial knowledge of the best ways to implement their generosity. “All of this is just such a gift—the way we see our lives, the blessings in them—we want to give some of that back.”
2011 Presbyterian Foundation Annual Report
6/6/12 9:11 AM