Tax Advantages

//Tax Advantages
Tax Advantages 2018-06-26T17:14:22+00:00

When you make a contribution to iGiftFund, an IRS-recognized public charity, you’re entitled to the most favorable charitable tax deductions available. Any deduction that you’ll receive depends on the asset type and your personal situation.

Donor-Advised Fund Tax Advantages Include:

Cash:

Donor-Advised Fund: 60% of adjusted gross income*

Private Foundation: 30% of adjusted gross income*

Publicly Traded Securities:

Donor-Advised Fund: 30% of adjusted gross income*

Private Foundation: 20% of adjusted gross income*

Real Estate:

Donor-Advised Fund: Tax Deduction based on Fair Market Value. 30% of adjusted gross income*

Private Foundation: Tax Deduction based on Cost Basis. 20% of adjusted gross income*

Closely-held Stock:

Donor-Advised Fund: Tax Deduction based on Fair Market Value. 30% of adjusted gross income*

Private Foundation: Tax Deduction based on Cost Basis. 20% of adjusted gross income*

NOTE:  Unused deductions may be carried forward for up to an additional 5 years. *

The Tax Benefits Associated with Donor-Advised Funds

Income tax:
You’ll receive an immediate and maximum income tax deduction in the year that you contribute to your donor-advised fund (subject to the above adjusted gross income limits).

Capital gains tax:  Contributions of appreciated assets that are held for more than a year incur no capital gains tax. (For more information, please see our  donor-advised fund vs. private foundation comparison.)

Estate tax: Your donor-advised fund will not be subject to estate taxes.

Tax-free growth: Your investments in a donor-advised fund is allowed to appreciate tax-free.

Alternative minimum tax (AMT): If you are subject to AMT, contributions to your donor-advised fund will reduce your AMT liability.

Note: The information provided herein is for informational purposes only, and should not be interpreted as legal and/or tax advice. Donors should always consult their legal and tax advisors regarding their specific situations.

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