With Donor Advised Funds (DAF), you can support your favorite causes – like what we do here at Alpha Home – while mitigating your tax bill in return.
According to National Philanthropic Trust, a Donor-Advised Fund is “a giving account established at a public charity. It allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time. Donors can contribute to the fund as frequently as they like, and then recommend grants to their favorite charitable organizations whenever it makes sense for them.”
Today, grants from DAFs account for more than 3 percent of all giving in the United States.
With a DAF, you can contribute cash, appreciated assets, or investments. Contributing appreciated non-cash assets held for more than one year can unlock additional funds for your chosen charity in one of two ways.
First, you can potentially eliminate the capital gains tax you would incur if you sold the assets yourself and donated the proceeds, which may increase the amount available.
Second, you can claim a fair market value charitable donation, if you itemize deductions, and pass on the savings in the form of more giving. If you are interested in learning more about how this giving applies to you, please reach out to your investment company, and ask about DAF giving.
Want to use your DAF to help transform lives? Your support helps Alpha Home fulfill our mission of offering “recovery, hope, and healing through spiritually-based drug and alcohol treatment and support”. Alpha Home appreciates being part of your giving decisions.
