When Carolyn Mani’s sister passed away and left her a generous gift in her estate, Carolyn knew exactly what she wanted to do with it.
“I think the best way for me to invest in the future and to share my prosperity with other people is by investing in [Phoenix Children’s],” she says.
Carolyn is a relative newcomer to Arizona, having moved to the Valley from California three years ago, but she knew right away that she wanted to leave a legacy here. “I love Phoenix. I love this area; I love the people here. And for me to be able to give back is part of my legacy.”
A mother of three and grandmother of four, Carolyn is passionate about helping children. She also grew up in a family that valued philanthropy. When she was introduced to Phoenix Children’s, she was so impressed by the organization that she decided to make it her cause of choice.
Her decision was driven not just by her commitment to making a difference for children, but also by her desire to make an impact in her new community. “I feel that it’s important to support your community, and this is my community now. I live here; I’m not going anywhere.”
An innovative way to give
As luck would have it, Carolyn’s introduction to Phoenix Children’s came at an event the organization co-hosted with Arizona Charitable Gift Planners, a nonprofit that supports the state’s charitable gift planning professionals. Carolyn works in the trust and estates division of an international auction house, so the event was initially a professional development opportunity for her. But it quickly turned into something more personal.
“I had the opportunity to go [to Phoenix Children’s] and see firsthand the amazing job everyone is doing there to support the community and children in the community,” she says.
At the event, not only did she find a local charitable organization whose mission aligned with her values, but she also learned about an innovative way to make a charitable gift. The topic of the event was donor-advised funds, the fastest-growing method of charitable giving in the U.S., according to Fidelity.
- “It’s a win-win for the donor and for the organization, and also for the heirs of any estate.”Carolyn ManiPhoenix Children's supporter
Increased impact + tax benefits
A donor-advised fund, or DAF, is an investment account created for the sole purpose of supporting a charitable organization. A DAF can be established using cash, stocks or non-publicly traded assets. The donor receives an immediate tax deduction and may recommend a grant to any eligible IRS-qualified public charity at any time.
Carolyn used the gift from her sister’s estate to fund her DAF and recommend a grant to Phoenix Children’s. “It’s a win-win for the donor and for the organization, and also for the heirs of any estate,” she says. “If you donate funds pretax, heirs don’t have to pay the taxes.”
Another benefit of a DAF is that the funds in the account are invested for tax-free growth, meaning that the donor may be able to make a gift larger than the original investment. “You can allow the money to actually grow while it’s in the DAF so that the ultimate gift to the organization is even higher than what you put in,” Carolyn adds.
A lasting commitment
The grant from her DAF is Carolyn’s first gift to Phoenix Children’s, but she says it won’t be her last. She’s also exploring the possibility of making an estate gift.
“Phoenix Children’s is an amazing organization,” she says. “If my legacy is with Phoenix Children’s, I’m thrilled by that.”
*This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.
Learn how a gift from a donor-advised fund can help you maximize your impact while reducing your tax burden.
