Donor Advised Funds (DAF) allow many of the advantages of a private foundation without all the costly legal and accounting fees. In other words, a DAF is similar to an "account" within the Young Life Foundation that will allow you the opportunity to make multiple charitable donations through one fund. This can be especially helpful if you have received some type of windfall, such as profit from the sale of a business. You may desire to make a charitable gift in a particular year for tax purposes. However, you may not want to distribute the entire gift immediately. A DAF allows you to make multiple distributions from the fund, similar to a private foundation.
All distributions from the fund are based on the requests of the donor. However, in order to protect our tax-exempt status, the IRS requires that all donations to the Young Life Foundation be considered as the sole property of the Foundation and subject to its authority and control. This means all distributions must be approved by the Foundation to determine whether or not the distribution request meets all the standards set forth by the IRS and is consistent with the ministry objectives of Young Life.
FAQs about Donor Advised Funds
- Can other ministries be supported through a Young Life Donor Advised Fund?
Yes. The DAF agreement states that up to 65 percent of a DAF may be distributed outside of Young Life. However, the Young Life Foundation does retain the legal right to deny the distributions from the fund that do not meet the criteria set forth by the IRS and that are inconsistent with the purposes of Young Life.
- What is the process for requesting distributions?
Distributions may be requested by letter, fax or e-mail.
- Is this considered a tax-deductible gift?
Yes. As our DAF contract is structured, your initial gift will meet all of the requirements for tax deductibility as established by the IRS.
- How are DAFs funded?
- Real Property (upon approval from the Young Life Investment Committee)
- Is there a minimum to establish a DAF?
- Does the donor have input into the investment of the funds?
The donor may choose from four investment options:
- Current Yield Strategy – low risk
- Income Strategy – lower than average risk
- Income/Growth Strategy – moderate risk
- Growth Strategy – moderate to high risk
- Is there a required annual distribution amount?
There is no time requirement for dispersal of funds.
- Is there a way to involve children in the giving?
Donors may add the names of their children and others to the approved advisor list, which is a great way to teach children about charitable giving.
- What are the annual management fees?
50 basis points (1/2 of 1 percent of the net value of the fund annually)
To receive additional information, complete the confidential online
Gift Planning Information Request Form.
For all questions on how to set up credit card gifts, electronic fund transfers, a lost receipt or any other general giving questions, call Young Life Mission Assistance at (877) 438-9572.
For more information on setting up a planned gift to benefit Young Life, please contact:
Director of Donor Services
Young Life Foundation
P.O. Box 520
Colorado Springs, CO 80901-0520
Phone: (800) 813-1945
Fax: (719) 381-1740
*The information contained herein is for explanatory purposes only and is not intended to be used as tax advice. Young Life recommends that you contact a professional tax advisor who can provide you with additional information on how your participation in the above program may affect your personal tax situation.