Tax advantages of a DAF
Contributions made to a Donor Advised Fund are irrevocable and
fully deductible as of the date it leaves your control. The extent
of your deduction will depend on the type of asset being contributed
and your particular tax situation. Please consult your legal and
tax advisors for more information.
Cash contributions are eligible for a federal income tax deduction,
up to a maximum of 505 of your adjusted gross income in the tax
year in which the contribution is made. If your contribution exceeds
this limit, you may carry forward the deduction up to five (5) years.
Publicly traded Securities
For publicly traded securities held for more than one year, the
amount of the deduction is the mean value of the high and low prices
of the security on the date of the contribution. You may generally
deduct up to 30% of your adjusted gross income for contributions
of appreciated securities held more than one year.
For securities held for one year or less, the allowable deduction
will be based on either your cost basis or fair market value, whichever
If your contribution of securities is greater than 30% of your
adjusted gross income, you may carry the deduction up to five (5)
All contributions to a Donor Advised Fund are separate from your
estate and therefore are not subject to either estate taxes or probate.
Any income that may accrue to the account from investment growth
is exempt from taxes but is not deductible.
One of the most rewarding benefits of Donor Advised Funds is the
ability to contribute appreciated securities without incurring any
capital gains tax liability.
The information contained on this site is for educational purposes
only. It is not intended to be professional tax or legal advice;
consult the appropriate professional regarding your specific situations.
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