A donor advised fund at JCF enables you to maximize your tax savings without having to track receipts from multiple charities. JCF will provide you with a single receipt for tax purposes for each tax-deductible donation you make to your JCF donor advised fund.
When donating stock that you’ve held onto for over a year, you receive the added benefit of avoiding capital gains tax.
A donor advised fund at JCF allows you to carry out your charitable giving simply and efficiently without the limitations and expenses associated with a private foundation or the administrative headaches of writing checks and tracking receipts. Learn about the many additional advantages of donor advised funds.
Tax Benefits of Donating Stock to a Donor Advised Fund
For gifts of long-term, appreciated publicly traded securities (i.e., securities that you have owned for more than one year), you may claim a fair market value deduction on the gift date. Furthermore, the donor is not subject to a capital gains tax on the appreciated portion of the contribution.
Gifts of appreciated securities may be deducted up to 30% of adjusted gross income in the tax year in which the contribution is made. Any excess may be carried forward and deducted up to the 30% limit in the 5-year period after the year of contribution.
“I was fortunate that I had some appreciated stock that I purchased many years ago. If I had sold the stock, my tax would have been around $15,000. By donating the stock to JCF to set up my fund, I avoided paying that tax. I figure that I set up a fund worth $100,000 with stock that cost me $8,000.”
Lou, JCF donor since 2006
Tax Advantages for Cash Contributions to a DAF
Cash contributions to donor advised funds are tax deductible in the amount contributed up to 60% of the donor’s adjusted gross income in the year in which the contribution is made. Any excess amount may be carried forward and deducted up to the 60% limit in the five-year period after the year of contribution.
Please note: Additional and different rules or limitations may apply with respect to your tax treatment, depending upon your specific circumstances. Please consult with your tax advisor. The Jewish Communal Fund is not responsible for the accuracy of any position taken by donors on their tax returns.