Yes! Charitable donations to a donor advised fund like Jewish Communal Fund are considered tax-deductible donations. That’s because Jewish Communal Fund is a 501(c)(3) public charity. JCF makes it easy to take a charitable tax deduction on your taxes when you open a JCF donor advised fund. Learn more about tax deductions and other tax benefits of a donor advised fund here.
What is a tax deduction?
A tax deduction is an expense that can be subtracted from your income to reduce how much you pay in taxes.
How do tax deductions work?
When you’re filling out your tax return, there are two ways to claim tax deductions: the standard deduction or itemizing your deductions.
The standard deduction reduces your income by an amount set by the IRS each year based on how you file your taxes (single, married filing jointly, or married filing separately). That lowers the amount of taxes you have to pay.
If you choose to itemize your deductions, you can reduce your taxes by more than the standard deduction amount. However, you will need to list all of your deductions on the Schedule A form of your tax return and save your receipts. Typically, only people who itemize their taxes can claim a charitable tax deduction.
Which donations are tax-deductible?
There are many different types of tax deductions, including medical expenses, student loan interest, mortgage interest, state and local income taxes, and more. Speak with your accountant to determine which tax deductions you can claim.
Charitable donations are one of the most common tax deductions. If you itemize your taxes, you can deduct the amount of money you gave to charity from your taxable income. 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. Gifts of appreciated securities may be deducted up to 30% of adjusted gross income in the tax year in which the contribution is made.
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.