DAF Donations

Why Your Support Matters to IDEAS

Your support through a Donor-Advised Fund (DAF) enables IDEAS to create meaningful, sustainable change of underserved migrants resident in Mexico. With your generosity, we provide financial literacy programs that empower individuals to manage resources wisely, increase access to critical tools like credit and savings to support migrant and returnee entrepreneurs in building thriving microenterprises. Your contributions help lift families out of poverty, strengthen local economies, and address systemic challenges for marginalized communities. 

What is a Donor-Advised Fund (DAF)?

A DAF is a charitable giving account that allows you to:

  • Contribute Assets: Donate cash, stocks, or other assets to your DAF, managed by a sponsoring organization like a community foundation or financial institution.
  • Take a Tax Deduction: Receive an immediate tax deduction in the year you make the contribution.
  • Recommend Grants Over Time: Decide later how and when to distribute funds to nonprofits like IDEAS.

Why Use DAF to Support IDEAS?

  • Tax Efficiency: Contributions to a DAF are tax-deductible, and donating appreciated assets like stocks avoids capital gains taxes. This allows you to give more without additional financial strain.
  • Simplified Giving: One donation to your DAF lets you support IDEAS and other nonprofits over time without needing to track individual transactions or receipts.
  • Flexibility: You can contribute assets to your DAF during high-income years and recommend grants to IDEAS whenever you’re ready, aligning your giving with your goals.
  • Tax-Free Growth: Assets in your DAF can be invested, growing tax-free to increase the impact of your philanthropy.
  • Sustained Impact: Your DAF enables you to support IDEAS’ ongoing programs and long-term initiatives, creating lasting change in areas like financial literacy, critical resources, and poverty alleviation.

How to Use DAF to Support IDEAS

  • Set Up Your DAF: Choose a sponsoring organization, such as Fidelity Charitable, Schwab Charitable, or a local community foundation.
  • Contribute Assets: Fund your DAF by donating cash, stocks, mutual funds, or other appreciated assets. The sponsoring organization will provide documentation for your tax deduction.
  • Invest the Funds: Work with your sponsoring organization to invest the assets in your DAF. The tax-free growth can amplify the impact of your giving.
  • Recommend a Grant to IDEAS: When you’re ready, recommend a grant to IDEAS through your DAF. The sponsoring organization will process the grant and send the funds to us, making it simple and seamless for you.
  • Repeat and Stay Engaged: You can recommend one-time or recurring grants, ensuring your support aligns with IDEAS’ mission and your personal giving goals.

Contact IDEAS: Please contact us at donations@ideasnet.org 

IRS Requirements

The IRS has specific rules governing DAFs to ensure funds are used for charitable purposes:

Grants must be directed to eligible 501(c)(3) public charities. IDEAS qualifies as a recognized nonprofit. Our original name that is on file with the IRS is Southern Neighborhoods Network. You may contact IDEAS to get the federal tax number.

Funds cannot be used to pay for memberships, event tickets, or any item that provides a personal benefit to the donor.

Your sponsoring organization will send grants to charities and confirm their compliance with IRS requirements.

Donations to your DAF are subject to standard charitable deduction limits:

  • 60% of AGI for cash contributions.
  • 30% of AGI for gifts of appreciated securities or other non-cash assets.

 You cannot use your DAF funds for private foundation grants or non-qualified entities.

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  • Relatives of each of the 5 population groups above. 
  • The government that collects taxes and benefits from free training of residents who are developing skills.
  • People selling or buying services from these populations. 
  • People renting apartments and business places to Latin American residents. 
  • Universities that are sending their students to be trained. 
  • Those who receive our training and later may decide to obtain full time employment find the materials useful. 
  • Consultants such as those videoing and editing videos, bookkeeping, computer work, social media, administrative tasks, publishing manuals,  etc.
  • Financial institutions who benefit from the interest paid on the loans or debts. They often do not pay IDEAS for developing their clients. 
  • Latin American Migrants: We seek to assist some of the 500,000 migrants from 11 countries who have gained residency in Mexico in the last 5 years. Many start businesses to sustain their families, with a significant portion being single mothers or women in vulnerable situations.
  • Binational Families: Returning Mexicans often face economic exclusion and loss of remittance income. IDEAS helps them and their families develop businesses through financial education and skill-building.
  • Financial Institutions: Many financial entities are hesitant to serve migrants. IDEAS educates them on the value of these populations. IDEAS provides potential with tools like infographics, training manuals and access to financial services such as loans and savings accounts. We train a substantial number of their staff who provide services like remittances, loans, investments, and savings.
  • Partner Organizations: NGOs, federal, state, and local government institutions, UN and international agencies, and others partner with IDEAS to support migrants and returnees. We train their staff to expand services and integrate entrepreneurship into their programs.
  • Volunteers, Consultants, and Students: Volunteers, part-time consultants, and students play critical roles, contributing expertise and gaining firsthand experience. We provide substantial education and valuable experience that help them now and prepare them for future work. Many report life-changing perspectives after working with migrant communities.