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Donor Advised Funds

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Donor Advised Fund

 

A donor-advised fund is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities or other assets to a donor-advised fund at a public charity, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth and you can recommend grants to any IRS-qualified public charity.

When you give, you want your charitable donations to be as effective as possible. Donor-advised funds are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to charity. Let’s take an in-depth look at how a donor-advised fund works.

 

How a donor-advised fund works

  • Make a Donation
  • Support Charities
  • Grow The Balance

 

Make a tax-deductible donation

Donate cash, stocks or non-publicly traded assets such as real estate, private business interests and private company stock and get your tax receipt. You’ll also be eligible for an immediate tax deduction.

 

Support charities you love, now or over time

You can support any IRS-qualified public charity with money in your donor-advised fund. The public charity sponsoring your account will conduct due diligence to ensure the funds granted out will be used for charitable purposes and the grantee is an IRS-qualified public charity.

 

Grow your donation, tax-free

While you're deciding which charities to support, your donation can potentially grow based on your investment preferences, making available even more money for charities. Investment options.

 

A smarter way to give

What if you could support all your favorite charities with just one donation? That's the power of a donor-advised fund.

 

Giving Account details

  • Assets generally accepted include
  • Cash equivalents
  • Publicly traded securities
  • Certain restricted, controlled, or lock-up stock
  • Mutual fund shares
  • Bitcoin
  • Private equity and hedge fund interests
  • Real estate
  • Certain complex assets, such as privately held C-Corp and S-Corp shares

 

Tax Benefits

As soon as you make a donation, you are eligible for an immediate tax deduction, just as you would by donating to another public charity. Your tax deduction may depend on the type of donation.

  • Cash donation - If you donate cash, via check or wire transfer, you're generally eligible for an income tax deduction of up to 60% of your adjusted gross income.
  • Long-term appreciated assets - Donating long-term appreciated securities potentially allows you to maximize capital gains tax advantages, which could help you reduce taxes and ultimately give more to charity. If you have long-term appreciated assets, such as stocks, bonds or real estate, you have an opportunity to further maximize your deduction. By donating these types of assets directly to charity, you generally won't have to pay capital gains, and you can take an income tax deduction in the amount of the full fair-market value, up to 30% of your adjusted gross income (AGI).

 

Other advantages of a donor-advised fund

Continue to enjoy benefits beyond the basics.

  • Simplified recordkeeping - it's much easier to keep track of one tax receipt
  • Support your legacy planning
  • Authorize your financial advisor to help you take full advantage of your donor-advised fund
  • Name your donor-advised account

 

 

 

 

 

 

 

We Offer Financing for Multi-Year Tax Prep Catchup Projects

 

Schedule a Initial Strategic Tax Planning Opportunity Discussion

 

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