During the 1600s, potters used an orange-hued clay material called “pygg” to make dishes and jars. These containers were sometimes used to hold spare change and over time became known as “pygg pots.” By the 19th century people had begun requesting their money jars be made into pig shapes as a play on words – and thus the “piggy bank” was born.
Modern “piggy banks” come in all shapes and materials, and almost universally allow money to be added and withdrawn. But there’s a special grown-up piggy bank that securely holds your money until you’re ready to grant funds as a charitable gift. Often referred to as a “family fund,” “giving fund,” or “Donor Advised Fund (DAF),” these accounts are a clever and convenient way to set aside money strictly for generosity. It’s giving before you give.
DAFs are the fastest growing philanthropic tool in the United States. People love them because they are:
- Simple. To bless a charity like Money for Ministry, you simply contribute to your DAF then provide instructions to have gifts distributed where and when you’re ready to give.
- Flexible. DAFs allow you to bless multiple organizations from one account. Plus, you can easily contribute a wide range of assets to fund a DAF.
- Tax-Smart. When you make a donation, you’re eligible for an immediate tax deduction. And funds in a DAF can also accrue tax-free growth over time.
- Generational. While funds deposited into a DAF are irrevocable, the actual account can be easily transferred to your children as part of your legacy plan. This ensures your loved ones will carry on your legacy of generosity and impact.
- Values-Based. DAFs help you earmark funds now to be given whenever your heart is moved. You can easily support causes or initiatives that reflect your personal values of faith, family, and eternal impact. That’s the real power of a Donor Advised Fund.