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  2. Thought Leadership
  3. Tax Savings

Tax Savings

Donor advised funds (DAFs) provide the following tax benefits to the donor:

1.) Income Tax: You receive an immediate income tax deduction in the year you contribute to your DAF. Since AEF is a public charity, contributions immediately qualify for maximum income tax benefits. The IRS does mandate some limitations, depending upon your adjusted gross income (AGI):

  • Deduction for cash – up to 60 % of AGI.
  • Deduction for securities and other appreciated assets – up to 30 % of AGI.
  • There is a five-year carry-forward for unused deductions.

2.) Capital Gains Tax: You will incur no capital gains tax on gifts of appreciated assets (i.e. securities, real estate, other illiquid assets.)

3.) Estate Tax: Your DAF will not be subject to estate taxes.

4.) Tax-Free Growth: Your investments in a DAF can appreciate tax-free.

5.) Alternative Minimum Tax (AMT): If you are subject to alternative minimum tax (AMT), your contribution will reduce your AMT impact.

 

 

Other Tax Considerations

Donors can deduct the full market value of certain contributed assets, subject to the AGI limitations listed above. These assets include:

-Closely held stock
-Real estate

The following articles and resources can help. Contact us or call at 1-888-966-8170 with any further questions.

Note: The information provided herein is for informational purposes only and should not be interpreted to constitute legal and/or tax advice. Donors should consult their legal and tax advisors regarding their specific situations.

 

Whitepapers, Ebooks & Articles

  5 Tax Savings Tips for your Clients
  Year-End Tax Planning Strategies
 

Additional Insights

 How to Avoid Tax Regrets
 Year-End Tax Check-Up

Thought Leadership

  • Choosing a Donor Advised Fund
  • Real Estate
  • Charitable Trusts
  • IRA Charitable Rollover
  • Retirement Planning
  • Life Insurance
  • Scholarships
  • Charitable Planning Conversation
  • Private Foundations
  • Tax Savings
  • Bequests
  • Building your Financial Practice
  • Estate Planning
  • Roth IRA Conversion
  • Closely Held Shares
  • Agriculture
  • Forced Capital Gains
  • Selling a Business?
  • Donors: Advice for Giving

"Our ensemble financial planning firm has been using AEF to host DAF’s for many of our clients since 1993.

We could not be happier with the pleasant and responsive service that we receive from the staff at AEF, and we hear the same comments about AEF from our clients.   We appreciated AEF’s willingness to work seamlessly with us to service our clients’ DAF accounts for grant making with up to date on-line capabilities.

Many clients have established shell DAFs, which will receive the remainder interest of their CRTs and CGAs at death, thus allowing the next generation to continue on with their parents’ legacy of philanthropy for future generations with sizeable sums to benefit the family’s favorite causes.  If you are an independent advisor seeking a philanthropic partner, you need look no farther than AEF."

Johnne Syverson, CFP, AEP, CAP
Syverson Strege and Company

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Office Location

5700 Darrow Road Ste. 118,
Hudson, Ohio 44236

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Phone: 1-888-440-4233
Fax: 330-656-2063

Advisor Support: advisorsupport@aefonline.org
Donor Support: donorsupport@aefonline.org

 

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