A donor advised fund simplifies your charitable giving and provides numerous benefits:
- Flexibility: It enables you to get a charitable tax deduction when you make a contribution to a DAF and make decisions about which charities to support at a later date. A wide variety of assets can be contributed to a donor advised fund.
- No receipts: You no longer need to track receipts from multiple charities.
- Ease of Use: Fund holders can check fund balance and contribution history and recommend grants at their convenience.
- Grow your charitable dollars: The assets in your fund grow tax-free, thereby generating more charitable dollars to support the charities you care about.
- Maximum tax deduction: When you make a contribution to a donor advised fund, you are making a charitable donation to a 501(c)(3) tax-exempt public charity. Consequently, you are entitled to receive the maximum tax deduction allowed by law.
- Privacy and confidentiality: A donor advised fund is not required to publicly disclose the grant making activities of individual donors. Also, grants may be made anonymously.
Tax Advantages Maximize Your Philanthropic Capital
“I was fortunate that I had some appreciated stock that I purchased many years ago. If I had sold the stock, my tax would have been around $15,000. By donating the stock to JCF to set up my fund, I avoided paying that tax. I figure that I set up a fund worth $100,000 with stock that cost me $8,000.”
– Lou, JCF donor since 2006
For gifts of long-term appreciated publicly traded securities (i.e., securities that you have owned for more than one year), a donor may claim a fair market value deduction on the gift date. Furthermore, the donor is not subject to a capital gains tax on the appreciated portion of the contribution.
Generally speaking, the fair market value is determined by averaging the highest and lowest quoted selling prices on the date the gift is received.
The deduction for donated securities that a donor has owned for one year or less is limited to the cost basis or current market value, whichever is lower.
Gifts of appreciated securities may be deducted up to 30% of adjusted gross income in the tax year in which the contribution is made. Any excess may be carried forward and deducted up to the 30% limit in the 5-year period after the year of contribution.
Please note: Additional and different rules or limitations may apply with respect to your tax treatment, depending upon your specific circumstances. Please consult with your tax advisor. The Jewish Communal Fund is not responsible for the accuracy of any position taken by donors on their tax returns.
Cash contributions are deductible in the amount contributed up to 50% of the donor’s adjusted gross income in the year in which the contribution is made. Any excess amount may be carried forward and deducted up to the 50% limit in the five-year period after the year of contribution.
A donor advised fund at JCF allows you to carry out your charitable giving simply and efficiently without the limitations and expenses associated with a private foundation or the administrative headaches of writing checks and tracking receipts. To learn more about a JCF fund, click here.