Most of our clients make donations to charities – but do not always receive a full tax advantage for doing so. How can tax reduction planning help you maximize charitable contribution deductions?
We recommend exploring the benefits of Donor Advised Funds (DAF).
A DAF allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants to charities from the fund over time. Donors can contribute to the fund as frequently as they like, and recommend grants whenever it makes sense for them.
How does a DAF work?
- You can make a charitable contribution to a DAF of cash, appreciated stocks, mutual funds, real estate, or artwork
- You immediately receive the maximum tax deduction that the IRS allows the year you contribute to a DAF
- Your contribution in a DAF can be invested and grows tax-free
- You name your donor-advised fund account, advisors, and any successors or charitable beneficiaries
- At any time afterward, you can recommend grants from your account to qualified charities
If you’d like to find out more about Donor Advised Funds or tax reduction planning, or see if anything can be done to lower your taxes, we’d be happy to schedule a complimentary and no-strings call with you. We try making calls as informative as possible!