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What does a long-term investor and a charitable giver do to prepare for the end of the year? They open a Donor Advised Fund (DAF) with their investment firm!
A DAF is a smart, tax-efficient way to manage your charitable giving, particularly during the year-end giving season. And the best part? You don’t need to be ultra-wealthy for a DAF to make sense! It’s a flexible tool for anyone looking to maximize their charitable impact.
With a DAF, you can contribute cash, appreciated assets, or investments held for over a year. Once your DAF is set up, you can recommend grants to your chosen charities at any time. Plus, by donating appreciated assets, you avoid capital gains taxes and can receive an immediate tax deduction based on the full value of the asset. This allows you to give more to the causes you care about.
Explore the chart below and, if your provider isn't listed, just search online for “Donor-Advised Fund + [your provider’s name]" to learn more.
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