In today’s philanthropic landscape, donors are seeking smarter, more impactful ways to support the causes they care about. Two of the most effective vehicles—Individual Retirement Accounts (IRAs) and Donor-Advised Funds (DAFs)—offer unique advantages for both donors and nonprofits like the Phi Delta Theta Foundation.
IRA Charitable Giving: A Tax-Smart Solution
For donors aged 70½ or older, IRAs offer another powerful way to support the Phi Delta Theta Foundation. Through a Qualified Charitable Distribution (QCD), you can transfer up to $108,000 per year directly from your IRA to a qualified charity—tax-free.
Why Give Through Your IRA?
- Tax-Free Giving: QCDs are excluded from your taxable income, even if you don’t itemize deductions.
- Satisfy Required Minimum Distributions (RMDs): QCDs count toward your RMD, helping you avoid additional income tax.
- Maximize Your Impact: More of your money goes directly to the cause, not to taxes.
What Is a Donor-Advised Fund?
A Donor-Advised Fund (DAF) is a charitable giving account administered by a public charity, designed to help individuals, families, or organizations manage their donations efficiently. Think of a DAF as an investment account for philanthropy: you contribute cash, stocks, or other assets, receive an immediate tax deduction, and then recommend grants to nonprofits over time. Your investment grows tax-free, allowing you to make a lasting impact.
DAFs are on the rise—Fidelity Charitable alone distributed $11.8 billion in gifts through DAFs in 2023, an 18 percent increase over the previous year. The number of DAFs has nearly tripled in the past decade, making them the fastest-growing philanthropic vehicle in the US.
Why Use a DAF?
- Immediate Tax Deduction: Receive a tax deduction the year you contribute, even if you grant funds to charities later.
- Flexibility: Donate cash, stocks, mutual funds, bonds, or even complex assets.
- Anonymity and Simplicity: DAFs can offer privacy and reduce administrative burdens.
- Legacy Building: Create a lasting tradition of giving for your family.
- Financial Savvy: DAF donors are often strategic, leveraging assets for maximum impact.
Who Uses DAFs?
DAF donors are typically financially savvy individuals who value strategic planning and maximizing their philanthropic experience. The median DAF account balance is less than $20,000. Increasingly, younger generations are opening DAFs, making this a tool for donors of all ages.
Why Support the Phi Delta Theta Foundation?
The Phi Delta Theta Foundation is dedicated to strengthening men for life by building on the core values of Friendship, Sound Learning, and Rectitude. The Foundation grants over $1 million annually in scholarships, fellowships, and educational grants, supporting leadership development, health and safety initiatives, and member support through its ambitious Campaign 2030: A Greater Version for Tomorrow.
Your gift—whether through a DAF or IRA—helps sustain these programs and empowers future generations of Phi Delts to achieve personal greatness. The Foundation accepts contributions through DAFs, IRA rollovers, matching gifts, and estate planning arrangements, making it easy for you to choose the giving method that best fits your financial goals.
How to Get Started
The Phi Delta Theta Foundation is a 501(c)(3) organization with nonprofit status. Our Tax ID number is 34-6539803.
- IRA Charitable Rollover: If you’re 70½ or older, ask your IRA custodian to make a direct transfer to the Foundation. This satisfies your RMD and maximizes your tax benefits.
- DAF Giving: Contact your financial adviser or DAF provider to recommend a grant to the Phi Delta Theta Foundation. The process is simple and can be done online.
- Learn More: Contact the Director of Advancement, Brayden Hosman, at bhosman@phideltatheta.org or 513-280-6724 to discuss options in depth.
Make Your Legacy Count
By leveraging Individual Retirement Accounts (IRAs) and Donor-Advised Funds (DAFs), you can make a strategic, tax-efficient gift that supports the mission of Phi Delta Theta for years to come. Join thousands of donors who are building a greater version for tomorrow—your generosity will help shape the future of our brotherhood.
Ready to make your impact? Contact your adviser or the Phi Delta Theta Foundation today.
