Smart Charity – 5 Tax Benefits Donor-Advised Funds Contribute

Smart Charity – 5 Tax Benefits Donor-Advised Funds Contribute

Donor-advised funds offer easy and flexible charitable giving with great tax planning benefits. Here are five ways to benefit from donor-advised funds during tax season. Centralize Giving and Records. Stop searching for donation receipts. Donor-advised funds let you focus on one charity for tax purposes. All your donation records come from your fund. You can plan the amount you want to give easier, advise grants to the numerous charities you care most about, and you don’t need to worry about writing and mailing numerous checks (donor-advised fund administrators distribute your donations too). Harvest Gains and Rebalance Your Portfolio. Contributing appreciated assets to charity can offer greater tax-savings than donating cash. Donating appreciated securities, at fair market value if held more than a year, to your donor-advised fund can provide a charitable deduction that helps off-set capital gains taxes. You can also strategically rebalance your portfolio. Donating low basis appreciated securities can increase your portfolio’s overall cost basis. Budget and Schedule Your Giving. How much do you want to give this year? Next year? Donor-advised funds make it easy to see how much you’re giving and to whom because the information is all in one place. Do you give regularly to one or more charities during the busy holidays – or some other time that isn’t convenient to remember and take the time to do it? Schedule your grant advisements in advance, when it’s convenient for you, for the time(s) you want to gift to charity. Your donor-advised fund will take care of it. Separate Donating from Gift Giving. You should donate at the optimal time for you tax-wise and...