As someone who makes several donations throughout the year, I used to dread tax season. It was a hassle tracking down all the receipts, organizing them, and ensuring I didn’t miss anything. I’m sure I’m not alone in this—how many times have you forgotten to include a donation receipt, only to pay more in taxes than you should have? I know I did.
But a recently, I found a solution that simplified everything. Now, despite donating to multiple organizations throughout the year, I only have to deal with one donation receipt. No more chasing paperwork. And the best part? It gives me the flexibility to decide when and how I support the causes that matter to me.
Here’s how I do it.
My Family Foundation Fund
All of my donations go through a family foundation fund—technically called a Donor Advised Fund (DAF). When I make a donation to this fund, I receive the tax benefit immediately. From there, my family can decide which organizations to support and when to distribute the funds. We get the freedom to be strategic with our giving while staying organized for tax purposes.
Instead of keeping track of every single receipt, I only need one: the donations I make to our family foundation fund throughout the year are compiled into one donation receipt from the family foundation fund to me at the end of the year. It’s a game-changer in terms of simplicity and peace of mind, especially come tax time.
What’s a Donor Advised Fund?
Now, before you think this is some tool reserved for the ultra-wealthy—let me stop you right there. A Donor Advised Fund (DAF) is accessible to anyone. You don’t have to be a multimillionaire to set one up. Essentially, it’s a charitable investment account that allows you to donate money now, receive your tax deduction immediately, and decide later where you want those funds to go.
The beauty of this setup is that it allows you to be generous at your own pace. Maybe you want to support a specific cause immediately, or perhaps you want to wait for the right opportunity. Either way, you’ve already taken care of the tax side of things. Plus, it removes the burden of keeping up with individual receipts for every donation made throughout the year.
Why I Love This Approach
I used to forget donation receipts all the time—sometimes because I misplaced them, and other times just because it was too much of a hassle to gather everything. And every time I missed one, I ended up paying more in taxes than I should have.
With my family foundation fund, I don’t have to worry about any of that. Everything’s in one place, and I have the freedom to focus on making an impact with my giving, rather than dealing with paperwork.
How You Can Do the Same
This type of account has been such a helpful tool for me, and I want others to experience the same benefit. If you’re interested in setting up a family foundation of your own, Stewardship can help. In fact, the account I use was set up through Stewardship, and we can help you get started, too. It’s a simple, smart way to manage your generosity and ensure you’re getting the full tax benefits of your donations.
If you want to simplify your giving and stop worrying about missed receipts, consider setting up a Donor Advised Fund through Stewardship. It’s not just for big-time donors—it’s for anyone who wants to give with intention and organization.
And trust me, your future self will thank you when tax time rolls around.
