3 Benefits of Donor-Advised Fund Giving

Charitable giving through donor-advised funds (DAFs) has grown in popularity in recent years. A DAF comprises contributions made separately and independently by individual donors. The fund maintains legal control of the contributions, and donors retain advisory privileges regarding investments and fund distributions.

DAFs provide several advantages, particularly for high-income individuals. For example, they can help you:

Separate tax planning from charitable planning.
When you make a contribution to a DAF, you receive an immediate tax deduction up to 50 percent of adjusted gross income (AGI) for gifts of cash and up to 30 percent of AGI for gifts of appreciated assets (with a five-year carry-forward on gifts that exceed the limits).