A Window of Opportunity: Donor Advised Fund before December 31?

A Window of Opportunity: Donor Advised Fund before December 31?

On December 9th, the markets hit their 13th record close since the November elections. Accompanying the records in the market, we have also seen what feels like a record number of opinions of what the change in administrations will mean for taxes.  Some of these opinions have focused on the potential tax changes and their effects on the charities and the charitable deduction.  Fidelity Charitable offered what I consider a measured and reasonable framework for the possibilities. It is safe to conclude that there is at least a good likelihood that the benefits of giving in 2016 may be more tax wise than in future years. If you believe that to be true, these next few days may be ideal for starting a donor advised fund.  Here’s why: Tax Benefits in 2016, Grant in 2017 and Beyond:  Right now, this simple and unique benefit of a donor advised fund could be its biggest.  Donors can take a deduction in 2016 and reserve the right to recommend grants in future years.  If you can use a tax deduction this year, you can get it and “lock-in” its’ benefits. You do not have to decide where you want its support to go at this time, you can choose the charity at a later date. You Don’t Need to be Bill Gates:  If you have been following donor advised funds for several years, you may remember the gift minimums to be $25,000 and above.  These minimums have come down over the years.  In fact, The Advise Us Fund‘s gift minimum is $2,500.  With the lower minimums, it may be feasible to “pre-pay”...