Are you ready for a great opening day? Opening a donor-advised fund is easy, but covering the four bases below means you’ll get the most out of your fund starting from day one.
- Maximize Contribution Benefits with Your Donor-Advised Fund. Consider giving long-term (held over a year) appreciated securities to your donor-advised fund. This can avoid capital gains tax and maximize your charitable tax deduction.
- Keep the Right Tax Records – It’s Easy. Gifts to your donor-advised fund may be tax deductible. Those are the records to keep for your taxes. You do not need to keep tax records for grants you advise from your donor-advised funds to charities. You cannot claim donor-advised fund grants on your taxes.
- Schedule Grant Advisements – It’s Easy. Consider scheduling regular or future one-time charitable gifts. The grant advisement process is easy. You don’t have to remember and take the time to make a gift when you’re busy, like during the holiday season.
- Your Donor-Advised Fund Can Contribute to Estate Plans. Donor-advised funds offer flexible options for estate planning. Consider advising a grant from your fund to one or more charities that you care most about. Consider leaving the right to make grant advisements from the fund to your heir(s). Consider funding a donor-advised fund for your heir(s) from your estate to leave a legacy of charitable giving.
Donor-advised funds make it easy to field a winning team with flexible and tax-efficient charitable giving. Covering the four bases above can make your donor-advised fund experience easier and more fulfilling starting opening day.
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Andrew Hibel serves as President and is the Founder of The Advise Us Fund. He is also Chief Operating Officer and Co-Founder of HigherEdJobs. Andrew holds a B.A. in Economics and a M.Ed. from the University of Illinois, and a J.D. from Indiana University, Indianapolis. He has been a planned giving officer for Penn State University and Advocate Charitable Foundation and served as Director of Gift Planning and Estate Administration for the Jewish Federation of Metropolitan Chicago.
The information in this blog post is general and educational. It is not intended nor should it be construed as legal, tax, investing or financial advice. Individuals should consult with their own advisor about charitable giving arrangements The Advise Us Fund® may describe.
