The Adventist Donor Gift Fund
What is the Adventist Donor Gift Fund?
The Adventist Donor Gift Fund (ADGF) is similar to a donor bank account. It allows donors to make charitable deposits now and choose where they want their gifts to go later. The fund can provide donors with many benefits, such as flexibility in giving, simplifying the giving process, quickly capturing tax benefits, and allowing loved ones to help guide where gifts will go.
How does the ADGF work?
First and foremost, donors make charitable contributions to the ADGF, then decide where they want their gifts to go later. When a donor creates their ADGF, an Adventist Only Account is set up, and twenty-five percent of all contributions go into this account. The donor designates an Adventist organization as the restricted beneficiary which will receive all the funds in this account. The other seventy-five percent of contributions are unrestricted and can go to any qualified charitable organization in the United States, which could include the Adventist organization designated as the restricted beneficiary, other Adventist organizations, supporting ministries, and non-Adventist organizations such as United Way. This second fund is called the discretionary account.
While the donor takes time to decide where to send their gifts, the funds are invested, and any market gains are added to the total balance of funds to be given away. Donors can choose between 16 investment strategies, including simple interest-bearing accounts, to avoid market volatility.
Donors can get others involved in charitable giving by designating family members and loved ones as additional donors, joint advisers, or authorized representatives. Doing so opens the door to teaching the next generation about the joys of giving.
Why was the fund developed?
The ADGF was developed with donors in mind, to give them a new charitable tool that will help them better experience the joy of giving. We at the GC want to make the ADGF as donor friendly as possible. Therefore, we have kept the minimum initial contribution as low as possible, at $1,000, to open an account. Minimum additional contributions are only $250, and the minimum grant to charitable organizations is also $250.
What are some of the benefits of the ADGF to the donor?
Flexibility
A key benefit to donors is flexibility in giving and the ability to support any U.S.-based non-profit organization, all while ensuring their favorite Adventist organization receives at least one-quarter of everything gifted through the ADGF.
Simplicity
An additional benefit to the donor is simplicity. The donor can give to multiple charities and receive one charitable receipt. There is such a variety of amazing Adventist organizations that many donors will give to five, ten, or more ministries in any given year. With the ADGF, a donor can write one check, receive one tax-deductible receipt, then distribute the funds to all the organizations they wish to support.
Capture Tax Benefits
Also, the ADGF gives donors who are paying income tax in the United States the opportunity to lock in a charitable tax deduction while giving them time to pray over and decide to which U.S.-based charitable organizations they wish to contribute. Gaining time is extremely helpful to those who may be selling a highly appreciated asset, like real estate or a business. They can offset some of the taxes resulting from the sale by contributing to the ADGF and then spread distributions to the charities they want to support over several years.
Another strategy that some have found helpful is to front-load their charitable giving in one year, then spread out their distributions over two. This approach is especially helpful to those who can no longer itemize their deductions because of the personal income tax deduction increase. If a donor is financially able, they can give two years' worth of charitable contributions in year one. The intent is to have enough itemized deductions to be greater than the personal deduction, and then make charitable distributions over two years.
Give Anonymously
While on the topic of distributions, if a donor chooses, they can send their gifts from the ADGF anonymously. As counseled to do so in Matthew 6:4, "Give your gifts in private, and your Father, who sees everything, will reward you." This anonymous gift-giving feature puts more control in the hands of the donor. When using the ADGF, a donor will no longer have to think twice about supporting a charitable organization for fear of disclosing some private information or ending up on a donor list and receiving letters, emails, or phone calls asking for more donations. Now, the donor can easily keep their identity private while enjoying the opportunity to participate in the charity's mission.
Who can invest in this fund? Only U.S. residents?
The only restriction on who can open an account is they must have a U.S. bank account. So from that perspective, they do not need to be U.S. residents. However, the tax benefits associated with the ADGF are primarily for those who live in the United States. If a donor is not paying U.S. taxes, they would most likely not receive any charitable tax benefits. Donors should check with their tax advisors to determine what tax benefits, if any, would be available by using the ADGF.
Also, remember that charitable distributions can only go to non-profit organizations in the United States. However, donors will still be able to give to Adventist organizations worldwide. Suppose a donor wanted to make a charitable distribution to an Adventist university in Africa. In that case, they could send the gift to the General Conference of Seventh-day Adventists and designate it for the university. The GC will send the check to the university per the donor's instructions. If a donor wanted to benefit a non-Adventist organization outside of the U.S., they would have to send the gift to a U.S.-based charitable organization supporting that non-profit, who would then forward the gift abroad.
Can any Adventist organization be listed as the restricted beneficiary?
Yes and no. The organization designated on the restricted Adventist-only account, the sub-fund that receives twenty-five percent of all contributions made to the ADGF, has to be listed in the Seventh-day Adventist Yearbook. That is the official directory of the General Conference of Seventh-day Adventists. Some organizations, such as local churches and elementary schools, are not listed individually in the Adventist Yearbook. Gifts can still get to these organizations, but they must go through their parent organization first, such as the local conference, and be designated for the local organization. So, when a donor wants to list their local church as the beneficiary of their Adventist-only account, they must list the local conference as the beneficiary and designate the gift to be given to their local church.
Can I return a tithe through the ADGF?
Absolutely! Just make sure to designate the local church the distribution should go to and that it is to be used as tithe. Remember, just like when you put an offering in the collection plate, you must designate it as tithe for it to be used appropriately.
How can this fund help pass on the Joy of Giving to the next generation?
Children, grandchildren, cousins, nieces, nephews, friends, neighbors, anyone can be brought in to help decide where the gifts will go. Donors can set up an account, make a charitable deposit, then designate others as Additional Donors or Joint Advisers. The donor maintains control over how much authority they want to give to loved ones, which allows the donor to teach others how to make impactful gifts as well. Once loved ones experience the joy of impacting people's lives, they may also choose to give through the ADGF.
How can someone start their own ADGF account?
Contact the Planned Giving & Trust Services representative or fundraising professional at your local conference, academy, university, media ministry, or hospital system. You can also go to www.willplan.us/donorgiftfund/ for more information about the ADGF.
