DONOR-ADVISED FUND SERVICES
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A donor-advised fund, or DAF, is a special account that allows you to make contributions to that account and be eligible for an immediate tax deduction, and then recommend grants over time to any IRS-qualified public charity. Think of it as an “IRA” for charitable contributions; you receive a tax deduction in the year you make the contribution, but you can make the donation (e.g., “distribution”) many years later.
Key features related to a DAF:
Minimize capital gains taxes through contributing appreciated assets held for one year or more.
Unlock illiquid assets such as real estate, private equity, and other appreciated assets and investments in support of charitable-giving and estate-planning goals.
Receive a same-year tax deduction on contributions to the account with the option of recommending grants to charities over time.
Build a legacy of giving by involving family members in grant recommendation decisions.
Individuals, organizations, or businesses can open an account with a minimum of $5,000. After the initial contribution, they may make contributions of $500 or more at a time. Grants as small as $50 can be made to the charitable organization of their choosing. For tax purposes, contribution acknowledgements are mailed for each contribution.
The fair-market value (FMV) of a donation that has been held for more than one year is as follows:
50% of adjusted gross income (AGI) for cash
30% of AGI for publicly-traded securities
30% of AGI for real property and privately held interests