Donors

Making the Most of Your Charitable Dollars

Community foundation donor advised funds allow you to benefit immediately from reduced income tax obligations, and perhaps a reduced tax bracket, while allowing yourself the necessary time to give thoughtful consideration to your charitable goals.

Opening a community foundation donor advised fund initiates a number of significant tax benefits:

  • An immediate income tax deduction for the current market value of assets contributed to your donor advised fund (a better tax deduction than may be available with a private foundation).
  • No capital gain tax on contributions of appreciated assets. There are significant advantages to contributing appreciated assets to charity (stocks, bonds, real estate, closely-held stock). When you contribute these types of assets to your fund, you can deduct their fair market value without incurring any capital gains liability – so you can have more available for your grant making.
  • Any income or growth of assets within a donor advised fund is not subject to tax.
  • Donor advised fund assets are not subject to estate taxes.

A contribution to community foundation separates the tax event from the grant-making event, eliminating year-end pressures to make decisions about which charities to support. You can make contributions to community foundation at any time, and then decide – when you are ready – which charities will receive the funds.

Community foundation urges donors to consult their attorneys, accountants or tax advisors with questions relating to deductibility of various types of contributions to community foundation donor advised funds for federal and state tax purposes.

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