It may seem counterintuitive, but sacrificial giving can actually result in greater savings long-term. There are several tax benefits that donors can reap, thanks to utilizing a donor advised fund (DAF):
(The IRS does regulate these gifts to public charities, by limiting deductions for non-cash assets held for over a year to 30% of adjusted gross income (AGI) or 60% of AGI for contributions of cash.)
Thanks to these tax benefits, donors can save money in the long run, allowing them to maximize their savings – and ultimately their giving – all while minimizing taxes.
Charitable giving in any form is laudable, but ensuring that you are donating in a tax-savvy way can increase your impact.