As we see charitable giving increase, donor-advised funds are becoming the driving force in philanthropic delivery. These vehicles allow individuals to place money in charitable accounts while taking an immediate tax deduction. From here, the donor can choose when and where to disburse it. These invested dollars within the accounts can accrue for years to come. The donor-advised fund is also useful for individuals who want to lighten a position in securities that have gone up in value because upon donating, it enables them to deduct the full value of the securities while avoiding paying tax on the capital gain. Donor-advised funds will continue to gain popularity as retirees look for tax efficient ways to give back.
See Dan Kadlec, Why Charitable Giving Has a New Look, Time Magazine, August 2, 2016.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
