A Donor-Advised Fund is like a charitable investment account, for the sole purpose of supporting charitable organizations like Sacred Heart Radio. When you contribute cash, securities or other assets to a Donor-Advised Fund to a public charity, like Fidelity Charitable, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth and you can recommend grants to virtually any IRS-qualified public charity.
As soon as you make a donation, you are eligible for an immediate tax deduction, just as you would by donating to another public charity. Your tax deduction may depend on the type of donation.
Cash donation - If you donate cash, via check or wire transfer, you're generally eligible for an income tax deduction of your adjusted gross income.
Long-term appreciated assets - Donating long-term appreciated securities potentially allows you to maximize capital gains tax advantages, which could help you reduce taxes and ultimately give more to charity. If you have long-term appreciated assets, such as stocks, bonds or real estate, you have an opportunity to further maximize your deduction. By donating these types of assets directly to charity, you generally won't have to pay capital gains, and you can take an income tax deduction in the amount of the full fair-market value, up to 30% of your adjusted gross income (AGI).
Other advantages of a Donor-Advised Fund
Continue to enjoy benefits beyond the basics.
Simplified recordkeeping - it's much easier to keep track of one tax receipt
Support your legacy planning
Talk with your financial advisor about how to set up a Donor Advised Fund.
Authorize your financial advisor to help you take full advantage of your donor-advised fund
Name your donor-advised account, such as the Robinson Family Fund
Please contact your own accountant, lawyer or financial adviser as to your individual situation prior to taking any financial actions.