Giving is as much a financial decision as well as a heartfelt decision.
Save taxes in four ways
1) Contributions are tax deductible in the year they are made. Because HCF is a public charity, contributions qualify for immediate and maximum tax benefits.
* Deduction for cash: Up to 50% of adjusted gross income (AGI).
* Deduction for securities and other appreciated assets: Up to 30% of AGI.
* Five year carry forward of unused deductions.
2) Avoid capital gains on gifts of appreciated property.
3) Avoid estate taxes.
4) Investments in a Donor Advised Fund can grow tax free.
Other tax considerations
When contributing the following asset types to HCF, donors can deduct the full market value of the asset subject to the AGI limitations mentioned above. If contributed to private foundations, the donor’s deduction would likely be limited to cost basis.
* Closely held stock (C-corp or S-corp).
* Real estate.
See Comparison: Private Foundation vs. Donor Advised Fund
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.