As financial advisor, you are in a unique position to give your clients a deeper understanding of the variety of options for charitable giving tax strategies. Living a lifestyle of generosity involves giving wisely and abundantly. It also includes helping your clients choose the most efficient giving strategies for their families and specific goals.

2024 Charitable Contribution Limits:  How much is deductible?

The foundation of your clients’ tax strategy begins with the 2024 standard deduction and knowing the limits on the deductibility of charitable contributions. The 2024 tax law offers charitable deductions to donors who itemize taxes and contribute cash or non-cash assets.

Tip:  It is important to remind your clients to hold the non-cash assets for more than one year before donating.

  • For 2024, gifts to a Donor Advised Fund (DAF) or a Donor Restricted Fund (DRF), the deductibility limit depends on the type of gift:
    • Cash Gifts: Donors may claim an income tax deduction up to 60% of their adjusted gross income (AGI).
    • Non-Cash Gifts: Donors may claim an income tax deduction up to 30% of their AGI.

 Tip: Gifts which exceed deduction limits may be carried over up to five additional years.

  • Quick Facts about the 2024 Standard Deduction:
    • For married couples filing jointly, it increases to $29,200 for the 2024 tax year, an increase of $1,500 compared with 2023.
    • For single taxpayers and married couples filing separately, it increases to $14,600 for the 2024 tax year, an increase of $750 compared with 2023.
    • For heads of household filings, it increases to $21,900 for the 2024 tax year, an increase of $1,100 compared with 2023.

 

From a Tax Perspective, Contributing to a DAF or DRF has Numerous Benefits

  • Immediate and Maximum Income Tax Deduction
  • Avoid Capital Gains Tax on gifts of long-term appreciated stock
  • Avoid Estate Tax – assets in a DAF are not included in the donor’s estate
  • Assets grow tax free
  • May Reduce Alternative Minimum Tax (AMT)

What makes iGiftFund Different?

  • Savings on DAF Fees: At least 25% lower than other DAF sponsors.
  • The Donor’s Financial Advisor Manages the Assets in the DAF: The donor’s financial advisor can manage the DAF assets on any platform, regardless of fund size, in open architecture.
  • Industry Experience: The longest experience in the DAF industry.
  • Advanced IT Platform: A robust IT infrastructure for a modern, efficient user experience.
  • Person to Person Support – No Call Centers: All calls are answered by real people, offering personalized service and direct support.
  • Fund Options in addition to DAFs: We also offer Donor Restricted Funds (DRFs) – DRFs can be tailored to a donor’s unique needs including designated funds, field of interest funds, unrestricted funds, scholarship funds, endowment funds, etc.

This content and its distribution are not intended to communicate tax, legal, or accounting advice.

Please consult your tax, legal, and accounting professionals relative to this content.

About iGiftFund

iGiftFund is an IRS-recognized, independent, public charity that sponsors donor advised funds.  Its mission is to inspire donors to create, preserve and distribute their philanthropic legacy and to make a truly remarkable impact on the lives of others, including the donor.

With the hallmarks of simplicity, accessibility and low administrative fees, iGiftFund sets the standard of excellence in the industry and distinguishes itself from the large, national commercial and independent DAF sponsors. Based in Hudson, Ohio, iGiftFund works nationally with donors and with financial advisors on their familiar investment platform, in open architecture. iGiftFund’s administrative fees are the most competitive in the industry, starting at just 45 basis points on the first $500,000 tier.