Equipping Donors in Richmond

Jennie’s tax preparer advised her that making a year-end charitable contribution would offer her a meaningful tax benefit. She didn’t like feeling rushed to decide which charities to support. 

Instead, making a one-time gift to her DAF allowed her to receive the full tax benefit of her charitable contribution that calendar year, and gave her an unlimited amount of time to decide when and where her charitable dollars would eventually go. 

While she waited, her DAF contribution was invested, providing tax-free growth, which increased her ultimate giving capacity. 

Paul was ready to sell the family lake house for $750,000 and wanted to support the local pregnancy center with half  of the proceeds from the sale. Prior to selling, he gifted 50% ownership to his Donor Advised Fund. This charitable donation significantly reduced his taxable income. After the sale, Paul’s DAF was credited with $300,000, and he received one simple charitable giving receipt. 

Paul knew making a large, one-time gift would complicate the pregnancy center’s budget. Instead, he made recurring, smaller gifts from his DAF to the pregnancy center for years to come, while his DAF custodian handled all the record-keeping.

David was planning to sell $20,000 in appreciated stock to make a gift to his church’s building fund. A friend gave him a better idea: donate the stock directly to the church, and avoid $4,000 in capital gains taxes otherwise due on the sale of his stock. 

When his church secretary said she didn’t think the church was set up to receive a gift of stock, David told her that it was OK. He gifted the stock to his Donor Advised Fund. At David’s direction, his DAF custodian then mailed a check to the church for $20,000.