Wade Pfau, Ph.D., CFA, RICP®

Charitable Giving with Donor Advised Funds

I recently wrote about Donor Advised Funds in my Forbes column. For readers who tend to make lots of charitable contributions, it is really worthwhile to make sure you understand two items with regard to tax planning for donations:

1) There can be large additional benefits through an additional reduction in lifetime capital gains taxation for those donating appreciated shares, rather than donating cash

2) Donor Advised Funds provide a way to completely separate the tax-planning issues of when to make donations from the charity-planning issues with regard to choosing worthy causes and deciding when it is most effective to make contributions

The Forbes column provides further details about each of these points, so please have a look. Also, see this blog post for more information on a real-world example in which McLean Asset Management set up a Donor Advised Fund through a foundation for its clients.

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